Panasonic Pricing Plan Woos SMBs

The Secaucus-based notebook PC unit of Panasonic is launching a print ad campaign and will target sales through distributors including Tech Data, Synnex Information Technologies, Ingram Micro and D&H Distributing, the company said.

"We are trying to make sure resellers are aware there is a different alternative out there other than the manufacturers going direct and competing for their business," said Sheila O'Neil, Panasonic's channel director. "We don't go direct at all."

Under terms of the new program, Panasonic will provide a 1 percent rebate to first-time resellers of its semi-rugged Toughbook. Resellers that have not acquired one of Panasonic's notebook products for at least six months will also be included, O'Neil said. Rebates will be provided to solution providers that acquire $40,000 worth of products between January and March, she said.

It's really the SMB space that Panasonic is targeting, O'Neil said. "We know that resellers can really make an impact on sales for these businesses," she said.

"We actually like their channel strategy," said Doug Garcia, vice president of sales at Questinghound Technologies, a Lighthouse Point, Fla.-based solution provider and Panasonic partner. Garcia said he believes that the Toughbook's low failure rate gives Panasonic,and solution providers,an advantage over notebook manufacturers whose products' failure rates are close to 20 percent.

"If you sell 100 notebooks, with a 20 percent failure rate, that's a huge deal in terms of customer service [costs," Garcia said. "Customers have to be educated that the up-front cost of the notebook isn't the overall cost."

But given that costconscious corporate IT departments are still eager to price-shop, Garcia said Panasonic may have its work cut out for it with notebooks that come with a higher cost of acquisition. But he ultimately believes it could be a good strategy.

"If they do, in fact, have a more [price-competitive offering, it's going to put them in some [markets they haven't been in," Garcia said. "If they come down, they may get some people stepping over the line to try them."