Q&A: Channel focus for Acer

Greg Mikaelian general manager channel sales at Acer Computer Australia discussed the criticism leveled at the hardware vendor’s move to sell products out of stores like Big W and Kmart. CRN Journalist Lilia Guan found out about the vendors current channel program and asked Mikaelian how resellers can position themselves to compete with the retailing giants and make money from commercialised products like notebooks and PCs.

Acer has copped some flak for selling machines through Kmart, Big W etc. What do you want to say to channel critics about this move?

GM: Acer is not the only vendor advertised by the discount department stores mentioned. While we cannot dictate to our partners whom they can sell product to and at what price, the role we can play and have done successfully over the past few years is to manage and/or minimise channel conflict. Acer realises that there are some benefits to having discount department stores advertising and selling our products. Done correctly it can assist with the overall demand generation of Acer products across all our channels.

CRN: What is Acer’s channel program?

GM: Acer has a range of channel programs addressing our direct partners, distributors and key dealers – also known as Acer Value Added Reseller Partners (AVP’s) – through our distributors. Our programs vary in criteria and structure – they are customised to align the partners to the business segments we are jointly addressing – and have common objectives.
Acer maintains that having good channel partners is a fundamental link to our customers. The channel is an extension to our marketing, sales, service and support infrastructure.

CRN: What does Acer offer to their channel partners?

GM: Acer offers its channel partners a strong brand and reliable supply of products. This is coupled with stable management as well as a consistent channel strategy.

CRN: What changes has the company seen, in terms of technology and the local channel?

GM: Having the right partners is a key requirement in our analysis when introducing new products and technologies in the Oceanic region.
Acer’s partnering base is varied and has changed over time with the landscape. An example of this change is our parting of ways with Alloys International, a broad based Acer distributor over eight years ago. Acer parted ways with Alloys amicably when they opted for a different business model to a value added distribution. Recently Acer reignited this relationship when addressing the home automation market with the Aspire iDea product, which Alloys were addressing vertically.

CRN: Can you talk us through some of your latest exciting channel technology?

GM: Acer has developed a number of exciting new products, including the Veriton 1000, which can be considered the way forward in terms of the desktop PC. The Veriton 1000 is an ultra small form factor PC that saves energy, space, lowers total cost ownership and helps the environment.
Acer has also come out with the Aspire iDea Media Centre, a convergence product that addresses the IT /AV, home automation market. Acer’s Gemstone Aspire Notebook range addresses the consumer market.

CRN: With the commercialisation of PC/notebook products, are resellers ever going to be able to make money from these products?

GM: With commoditisation it is becoming more difficult to make a healthy profit from purely selling a product.  I believe that there are three key issues to sustain profitability:
A) Making money from selling to customers, i.e. relationship, solution, service and support.
B) Having a cost efficient operation based on an e-business ecosystem, with customers and suppliers or vendors alike in an end to end solution.
C) Focusing on key suppliers or vendors who have a vested interest in the success

acer channel focus for hardware qa