Dell to create NZ dealer network; Johnston scores contract

The newly minted Simms NZ, headed by ex-Renaissance boss Paul Johnston, has landed the contract to create then supply a Dell dealer network - marking the US PC giant’s first real move beyond direct sales in New Zealand.

Mr Johnston (pictured) told NBR he will start recruiting immediately, targeting dealers who operate in the small-to-medium business market.

He expects Simms to sign its first Dell dealer by the end of the week.

The dealer network will complement Dell’s online direct sales and direct marketing efforts, and its PartnerDirect programme, which is aimed at larger customers (and in which Dell direct pledges not to compete on price in deals worth more than $20,000).

But dealers will have the advantage of Dell product people can look and feel.

Simms will hold Dell stock, said Mr Johnston, allowing for immediate delivery.

Dell has previously dipped its toe in the water of Kiwi retail by moving some end-of-line product through The Warehouse.

But this will be the first time the company has created a formal dealer network.

Mr Johnston fell on his sword at Renaissance pre-Christmas only to emerge just weeks later heading potential competitor Simms - whose Dell signing catipults it into the IT distributor A-lsit.

More brands to be distributed by Simms shortly. The company is still on track to be trading from its Albany, Auckland, office by mid-February.

The IT veteran founded Simms International’s local operation during January, and is also an investor. Simms began in the UK, and also does business in Australia - but each subsidiary operates on a largely independent basis, with different schools of brands.