Email this article   Print article 

Best Buy Or Bad Deal?

By Steven Burke, CRN
April 14, 2006    3:00 PM ET

One question that must be asked in the wake of Lenovo’s decision last week to sell its ThinkPad notebooks, ThinkCentre and ThinkVantage desktops and Lenovo 3000 line through retail behemoth Best Buy: Just what kind of message is Lenovo sending its other channel partners?

STEVEN BURKE
Can be reached at (781) 839-1221 or via e-mail at sburke@cmp.com.
First off, one must ask whether Lenovo views Best Buy as a product distributor or a solution provider that can truly deliver ThinkVantage solutions to small and midsize businesses. Lenovo has signaled, at least publicly, that it regards Best Buy as a solution provider. The deal is aimed at 135 Best Buy for Business locations and also covers Best Buy’s Internet and telephone order services. Does Lenovo really believe Best Buy will provide the same solution punch as a company like Future Tech, a Holbrook, N.Y.-based solution provider that invested $2 million in a ThinkVantage Technology Solution Center last year? Bob Venero, president of Future Tech, was unavailable for comment, but you’ve got to wonder what he and others who have invested millions of dollars in ThinkVantage solution practices are thinking now. This is the classic case of a vendor demanding a solution investment from partners and then devaluing that investment.

Solution providers say they don’t believe Best Buy can grab small or midsize solutions business from them. But the agreement is certainly destined to drive down product margins. And it also will cause headaches for partners fielding questions from CFOs or purchasing agents who are shopping with the kids on Saturday and see the ThinkPad line at a rock-bottom price on the Best Buy shelf. A best channel practice for vendors committed to selling SMB solutions through an independent solution provider network is to provide one distinct high-end product for partners selling into those accounts and another for retailers selling to mass-market consumers.

That is not the case with the Best Buy deal. Indeed, it includes ThinkPads and ThinkVantage desktops, which have long been promoted as providing higher reliability, security, asset management, etc. In one fell swoop, Lenovo diluted the high-value ThinkPad and ThinkVantage proposition by throwing the products on a retail shelf. My question for Lenovo: Is this the kind of message you want to send your solution providers?

What do you think of the Lenovo-Best Buy deal? Let me know at (781) 839-1221 or via e-mail at sburke@cmp.com.


Email this article   Print article 

More Components & Peripherals

Recent Articles

10 Hot Items From CES 2012 Opening Night

CRN provides a look at 10 items that caught our eye on opening night of CES 2012.

10 Weird, Wacky And Wonderful Things To See At CES 2012

CRN takes a look at the weirdest, wackiest, and intriguing products and events happening at this year's CES.

25 Must-See Products At CES 2012

It's that time of year again. Here are 25 hot items on tap for the 2012 Consumer Electronics Show.

  More Slide Shows




Related Videos
Loading...