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We're chatting this month with Don Mayer who has been around computers since computing began, and has a dozen years or so of experience in the hardware sales business.
Let's welcome Don Mayer, Director of Small Dog Electronics
UGNN: The first question everyone asks is where did
you get a name like 'small dog'?
Don: Actually
there are two reasons. Early in the computer days I was involved with large mail
order houses for computer equipment, and at one point decided this wasn't for me.
We decided to move to rural Vermont and start a personalized hardware finding business.
It was appropriate... you know, 'small dog' as opposed to 'big dog'. I've always
had dogs and loved dogs too, so it fit right in with my personal life.
UGNN: So that's why the little small dog toys you've
sent in the past! Neat concept. Our secretary has them all lined up on top her computer
monitor!
Don: [laughing] yes, everyone loves
those dogs!
UGNN: Small dog also just changed the name of the web
site from "smalldoggy" to "smalldog" ... what gives?
Don: Well in the beginning we weren't
sure about the web thing, but people took to it right away. It's sort of natural
since we're in the computer business... and "doggie" seemed a little trite.
So now it's smalldog.com
UGNN : We're hearing a lot these days about the 'gray'
market, or the 'dealer pipeline' can you share some insights on these buzz words?
Don: Yes. 'gray market' is a negative
term which usually refers to non-authorized sales. Please let your readers know that
Small Dog is NOT a gray market vendor. We are fully authorized by the manufacturers
we represent. 'Dealer pipeline' is another term for what is more specifically the
"product-year channel."
__ When big players like Circuit City, or say, Montgomery
Ward receive new product shipments that eclipse the previous models they want a quick,
easy method of flushing the previous product out of their warehouses. After the consumer
sales and liquidations, all the product left is usually put into the 'dealer channel'.
UGNN: So that's where Don comes in, right?
Don: Right. Over the years I've built
a good network and we get into the same auctions that the 'big dogs' get into.
UGNN: Don, did I sense a little stab there in reference
to 'gray market'?
Don: I guess. We just don't recommend
non-authorized vendors, and we don't want to be known as one. Your members really
want a vendor that can continue to provide a channel back to the manufacturer.
UGNN: Why do you suppose there is the volume of available
product in the dealer channel?
Don: Well there are a number of reasons.
New product cycles are coming about every 6 to 9 months now. That's the big one.
But there are also lots of dealer returns, and floor demonstration models which cannot
be resold as 'new' equipment.
UGNN: What do you mean by 'dealer returns'?
Don: That's anything from scratch and
dent to buyer remorse.
UGNN: Buyer remorse?
Don: You'd be surprised at how many
people go out and buy a new computer system and within a week bring it back. Some
not even taken out of the box.
UGNN: Do you get a lot of resistance to the dealer returned
product?
Don: Sometimes. But when people understand
that the product has been completely checked, certified and in some cases reconditioned
they know they're buying a 'new' machine, but have avoided the 25% to 50% depreciation
hit.
UGNN: : You're saying I can save nearly $1,000 on a
new $3,000 computer and it's exactly like a brand new machine?
Don: You got it. We even warranty those
machines. So you're just as safe as if you bought it from the computer store. Actually
safer because... well you know how some of the other vendors are.
UGNN: : [ laughing ] yea, who hasn't tried to get satisfaction
directly from the manufacturer! So your warranty is basically like the manufacturer's?
Don: We think it's better. We use the
best third party service we can find, and in most cities it's Service Net. What that
means is we want to help keep you going, rather than sell you new equipment.
UGNN : You sound like you've got some horror stories.
Don: Well, it's like this fellow who
recently had his Mac Classic hard drive go on the fritz. His local computer dealer
just shook their heads and said it's dead, we can put another one in there for you.
So they put one in and charged him $399.00. Then he had to do the whole reconfigure.
__ Later he was referred to us, and that 40-meg hard
drive could have been easily replaced with a brand-new 500-meg drive for, like, $99!
Of course, the Classic was hardly worth the four hundred bucks to begin with, so
for $695 he could have had a 'today' cpu like the SuperMac C500/140 16/1.2gb/8X.
You should hear their expression when they get a deal like that for just 200-bucks
more! That's where we really enjoy helping people.
UGNN: : Don, will you share more stories like that in
future issues?
Don: you bet!
UGNN: What's the biggest problem you see with the channel?
Don: I guess unrealistic expectations
would be one of them. Some callers think that the last version should be discounted
far more than we can discount it. We've had people wanting the G-3s for $500, and
that just isn't going to happen. We have a lot of deep discounts on a number of machines,
including PCs and Pentiums, but buying at 10 to 25% of the original cost is just
plain dreaming.
__ What's amazing is that we never really have enough
machines to meet the demand. So a lot of people have found out about this channel
and trust it for equipment.
UGNN: What about market trends. Do you experience ups
and downs in specialized markets.
Don: Not really. We do have to be alert
to budget years. We'll be searching on good buys during March and April because spring
is big in the Education fields.
UGNN: : So you have no problem getting on school system
bid lists.
Don: No, it's really not a problem.
We love to go up against tight school budgets
...and we win educational approval just about every time it comes up.
UGNN: Don, what do people want most?
Don: Well, after low price, it seems
that muscle and speed are most requested.
People are looking at G3 performance without the $1,000 upcharge. Most are really
going after the UMax, and the C-500 upgradable.
__ Many are interested in screaming upgrades, like the
Newer Technologies products.
UGNN: So you find a lot of them going for customization?
Don: Sure. We custom install of any
of the cards, memory, etc. "Build to order" really let's us help the user
get every dime's worth of value.
UGNN: We've run out of time, Don, and I want to turn
you lose. I know you're busy. One last question: advice for anyone buying machines
in today's market?
Don: The best advice
I can give?
If they really follow that method they'll get the machine they want for the money
they want to spend.
Fred: Don, will you visit again? Perhaps give us some insights into machine comparisons?
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