Scoble chimes in on the availability of Tablet PCs in retail stores:
“Microsoft has to do a better job of getting selection from OEM’s into stores. Best Buy in freaking Palo Alto only had only one Tablet PC on the shelf. This isn’t Kansas, it’s Silicon Valley within a mile of one of the most educated and richest populations in the world. That’s inexcusable.”
Scoble’s comments are part of a response to Lora’s post on Direct Sales versus Channel sales.
If you want to understand part of the industry struggles in getting Tablet PCs to market, these two posts are a good summary.
First, as Lora points out, the Tablet PC suffered from a Direct sales push over the last couple of years. This made sense to the manufacturers–or so they thought. The idea: sell in “large” quantities to companies that sell directly to end users. The retailers are happy, because it cuts out the middle man (distributor). There’s one catch–especially important for the Tablet PC: people are still learning about Tablet PCs and need good information about them. Your generic, one size fits all, direct resellers are hard pressed to fill this need. Even on the Comdex showroom floor I was stunned to hear some utter garbage from a major direct company rep about Tablet PCs that they carry. I just smiled at the nonsense I was hearing and walked on, but it’s a shame that for a variety of market reasons these companies have been the focus in terms of getting Tablet PCs to customers.
A consequence of focusing on direct sales is that the channel doesn’t get competitive pricing nor the best support. And think about it, this is the same channel that services all the vertical markets that everyone is saying the Tablet PC is so perfect for. See the disconnect?
As I pointed out a couple weeks back, the last bit of irony in all of this is that channel sales (according to Intel) were the reason for their Q3 processor sales being the largest ever. In other words, over the last year, a very good place to have been selling Tablet PCs was the channel market–not primarily the directs. In hindsight, what Microsoft should have done was partner with Intel’s channel efforts. Heck, it’s late, but Microsoft should do that today.
As I posted earlier, every quarter Intel has terrific channel education events. Microsoft and partner OEMs should be there front and center. They aren’t. People that really know Tablet PCs should be showing Intel’s channel partners what Tablet PCs are, how they can solve customer needs, and what value added they can provide. Let them touch Tablet PCs. Give them discounts on demo models. Give them support. I’ve been befuddled over the last year why this hasn’t happened. With Intel’s Centrino/WiFi push, how come Tablet PCs don’t get a showing at Intel’s channel events? Where is Microsoft? Where are the Tablet PC OEMs?
Here’s what I suggest:
* Microsoft should have someone that understands the Tablet PC and the channel (contracted out is fine) go on the quarterly Intel Channel Partner road shows.
* Gather up demo units from the leading OEMs so that attendees can try out Tablet PCs for themselves.
* Script out a 15 minute presentation (manufacturers are given an opportunity to present in front of the whole group as well as in an exhibit area) that shows what Tablet PCs are, what makes them unique, how they are used and what sales opportunities Microsoft sees.
* Show Intel how they can use Tablet PCs to illustrate the power of Centrino.
* Show Intel how more effective their mobile presentations can be by using Tablet PCs.
* Be ready with a suggested sales script, similar to that included in Scoble’s post, for attendees.
* Have brochures and contact info handy for OEMs and regional sales reps.
* Have list of ISVs and Tablet-enabled applications for various markets. Work with ISVs to have versions of their software on at least one demo unit ready to be shown.
* Have sample/trial software, such as OneNote, ready to handout from Microsoft and ISVs.
* Have URLs ready for each of the various community sites, news groups, OEM support sites as well as Microsoft’s main Tablet site.
* Offer a rebate program for channel partners to purchase their first Tablet PC demo unit. (Some OEMs may want to go further, but a discount on a demo unit is mandatory.)
* Provide advance looks at forthcoming releases, such as Windows XP Tablet PC Edition 2004.
* Be ready to explain how Tablet PCs can be made secure or how WiFi can be deployed most securely, etc.
* Be ready to explain Tablet PCs in terms of very specific uses, such as by a college student, a doctor, a nurse, an insurance agent, and so on.
* Oh, and one more thing: The person providing the demos should carry their own Tablet PC at all times–even on stage. In fact, don’t hire anyone for this job that doesn’t already own a Tablet PC. It’s that important.
Yep. Good start.
Here are a few more, on tangents:
– Tablet PC manufacturer inside channel sales people do not have access to Tablet PCs – this needs to change
– Tablet PC distributors sales people (Techdata, Ingram Micro, ASI, etc.) do not have access to Tablet PCs – this needs to change
– The person doing the demos should carry a Tablet PC at all times
– Rebate programs for demo units are fine. BenQ has one of the best demo programs around (partly because the people are so nice), but they don’t sell Tablet PCs 🙂 But really, most resellers can’t afford $1600 per Tablet PC * # of Tablet PCs brands they offer. Something needs to change here and I’m not sure exactly what. Sure the reseller holds the liability if the unit is stolen or broken (which happens with demo units), but the manufacturers needs to step forward and demonstrate their models, so maybe a rental space in display areas is more appropriate.
– Intel mobile channel division people WANT to use Tablet PCs. Why don’t they have them? Intel is still procuring traditional notebooks. Get even just a couple of Intel people in San Jose, Fulsom, Chandler, and Oregon to change over to Tablet PCs and then you’ll see other parts of Intel changing.
Lora, I copied a couple of your points to the main list 🙂
Semi-related: Intel also has several reimbursement and marketing fund plans for system builders.
Now, Tablet PCs don’t qualify for these “Intel Inside” campaigns because system builders have to sell another brand (not self-branded and CPU isn’t bought through Intel authorized distribution). Essentially, Tablet PCs end up fighting against already established marketing channels.
But I have a feeling that if Microsoft asked nicely and did all the legwork, Intel would work together to make special arrangements for these branded systems, through the Intel Product Dealer Program, Intel Inside Program, etc. The key would be to promote the Pentium M ULV processors, since IPDs can’t get those through IPD channel.
Granted, its easy to accumulate Intel Marketing funds. It’s just more difficult to spend it – because the reseller still has to cover the bulk of the cost. But there is probably a way around this. Again, special consideration for the Tablet PC….