Dell Drops SMB Deal Registration Threshold
The Round Rock, Texas-based computer manufacturer Monday is lowering the minimum deal price from $50,000 to $15,000, effective immediately. Dell has made the move in order to provide better protection to its solution providers, as well as expand the number of products and services from the company that can now be registered.
"We see this as a great opportunity in the SMB space," said Paul Shaffer, director, U.S. marketing and operations for Dell's global commercial channels. "We heard from our partners that doing $50,000 in sales was a lot for customers to be buying. We hope that lowering the threshold to $15,000 will create more opportunities for channel partners."
Previously, only EqualLogic products and opportunities were allowed to be registered below the $50,000 threshold. These changes to Dell's Partner Program are open to all of Dell's product and services, including servers, storage and client products to registration.
For Leo Bletnitsky, president of Desktop Valet, a Las Vegas-based solution provider, lowering the minimum on SMB deal registration starts to make Dell look like a more attractive partner, noting that big deals won't necessarily be needed in order to get price protection from Dell.
"We're a Dell reseller but I haven't sold one of their boxes in quite a while because we didn't want to deal with them," said Bletnitsky. "And, frankly, $50,000 to register a deal was high. But $15,000 makes it easier; a lot of deals fall into that range."
The changes to the program in the U.S. were prompted by solution provider feedback as well as watching Dell's European channel program drop its registration threshold from $50,000 to $25,000, Shaffer said. In fact, the changes in Europe have been met with such a positive response that Dell is considering dropping the threshold to $10,000 across the pond.
Bletnitsky believes that the moves Dell is making in Europe would be welcomed in the U.S. with open arms, and thinks that solution providers working with SMB customers might want to see that the minimum amount for registration come down even further.
"This is a great idea because it makes [Dell] a lot less scary to work with. Often I go to customers with smaller deals that couldn't be registered, but $15,000 might still be high. Dell should drop the threshold to $5,000," he said.
Currently, Dell is seeing high registration approvals, with the majority of deals brought to the vendor being approved.
"Right now, 85 percent of deals brought by our certified partners are approved; overall approval is at 70 percent," said Shaffer.
Because the computer maker is hoping that a lower threshold means more solution providers coming to them with opportunities, Dell has added more staff to meet the demand they hope to create.
The company has already begun testing out the new system with a select number of certified partners who were selected for the program's soft launch, Shaffer said, noting that the company was pleased with the results so far.
Lowering the threshold on deal registration is the latest move by Dell to continue to prove its commitment to the channel both locally and abroad, according to Greg Davis, vice president and general manager, global commercial channels.
"We are committed to continuing to respond to the needs of our partners globally, as our decision to lower deal registration for our partners who serve SMBs in the U.S. and EMEA proves," Davis said in a statement.