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Business Lessons From Mick Jagger
How Some Resellers Keep Rocking the Industry Decade After Decade

 

Author: Craig Zimmerman, IGS, International Government Systems, Inc.

Click here, to read the pdf version of this article

20 years ago, the rock band Rush released A Show of Hands. The Rolling Stones rolled out Steel Wheels – later dubbed Steel Wheelchairs by some who thought Mick, Keith, and crew were better suited to rocking chairs than rocking Veterans Stadium. Oh, and Milli Vanilli gave the world Girl You Know It’s True.

When Bobby Ahearn of IGS Systems, Inc. (www.decparts.com) was listening to classic bands like the Stones two decades ago, he was also busy founding what was to become Digital Equipment Corporation’s go-to shop for parts and service. Back then, IGS’s playing field – high-end computer equipment resale and repair – was shared among 30 or so key players and around 15 notable manufacturers. In the niche today, there’s about ten times the number of manufacturers. And half the number of resellers.

When asked for the reasons that some resellers have survived, and even thrived, like IGS has, during the last 20 years, while some dropped off the map, Bobby likens it to the music business: even though thousands of bands have come along in the time IGS has been in business, he’s still listening to Mick and Keef, Geddy and Alex, and the like because there’s just something about their formula that stands the test of time.

So what is it that separates the resellers who stay on the charts – the Rolling Stones of the business – from those who flare up and then, thankfully, disappear, like the Milli Vanillis? For one thing, they don’t lip-synch – these shops do all their own stunts, to mix a metaphor. And the biggest reason? The resellers that have held the stage for decades and played to SRO crowds have learned to dance with them what brung them.

Satisfaction

Bobby Ahearn of IGS Systems knows what Mick Jagger knows: ultimately, all your success rides on just one thing – giving your customers what they want. And what they want, more than anything, is service.

“There’s no question in my mind that it’s what we’ve cut our teeth on from Day One: it’s service excellence,” Bobby says. “It’s getting back to a customer in a timely fashion. It’s understanding their needs.”

For Bobby Ahearn and the other resellers who’ve continued to dominate the DEC/HP/Compaq niche, the foundation of service is communication, which, like everything else, has changed markedly in the last two decades.

“It’s communication today that’s the issue. Back then, it was fax machines. It was a lot easier to manage. We’re bombarded today with IMs and emails and faxes and telephone requests. We’re a 24/7 organization. There are people that are here on call 24 hours a day,” Bobby says, noting customer expectations regarding response time. But while technologies like email and instant messaging have ramped up the speed of communications, they’ve also shrunken the world, making it necessary for top resellers to brush up on their social studies.

A work in progress is also how Bobby characterizes his company and the rest of the resellers that have lasted in his niche. For these companies, continuing success requires near constant reinvention to meet the needs of changing markets and customers. Those who’ve managed to grow have, in addition to listening to their customers, learned to put their eggs in more than one basket – in IGS’s case, 39 more.

Bobby puts it very plainly: “You have to be diverse in our world today or you die.” A big part of that diversity comes from being a multivendor supplier who, rather than focusing all its efforts on a single product line, cultivates partnerships with manufacturers across the market. While IGS’s partnership with DEC runs deep, they also supply parts from IBM, Sun, NetGear, and around 40 other top manufacturers.

A successful reseller also spreads its business across the public and private sectors in hopes of weathering the inevitable ups and downs it will encounter over decades in the IT equipment business. That’s what IGS, for example, has done from its beginnings.

“We started it in 1990 as a repair facility, doing component level repair on DEC and Compaq products, primarily mid-range minicomputers. We’re what they call a legacy midrange repair facility. We focused primarily on the government, military, NASA. We were mission critical.”

Speaking of repair and flat-out technical know-how, Bobby says, “We’re not in the hanger business. If you sell clothes hangers, when they get there, they’re clothes hangers. But this is extremely high-end, extremely complicated hardware. When you’re in the used equipment business, you’re not selling pre-packaged, from-the-manufacturer product that works when it gets there. You’re selling product that has revision level issues. They have engineering changes throughout their lives.”

To deal with those changes, resellers have to not only continually study their product lines and the inevitable flood of revisions, upgrades, and introductions, they need testing facilities and procedures in place that can handle both current technology and large volumes of legacy product from multiple manufacturers. While this has always been key to survival, it’s even more important as corporations move to lop off everlarger portions of their 21st century operating budgets.

“The Fortune 500s, the Fortune 100s of the world, they can’t afford to have 30 different vendors,” Bobby notes. And they can’t afford downtime, either. “In the used and refurbished equipment world, how do you know it works when it’s getting where it’s going, and if you’re drop shipping it from who-knows-where?” Bobby says. “They found a need for being able to qualify those resellers that have stocking inventory.”

The final song of the set for resellers like IGS is attitude. Just like the Stones are never too rich to come back onstage and play at least one encore, a top reseller never rests on its laurels.

“We certainly are not irreplaceable,” Bobby notes. “You think you’ve got a skill set that can’t be replaced?” Not when he’s got 15 men and women who “can give me a good run for my money.”

Time Is on My Side

Whether your business is rock and roll or chips and DIPs, you get to be a perennial crowd favorite by finding out what that crowd needs and then delivering the goods, year after year, decade after decade.

And once customers find a reseller they can groove on, they should hang on. “Do your homework,” Bobby Ahearn advises. “If you’ve got a good relationship with a qualified reseller, hold on to them. They’re a valuable commodity.” |PSO|


Get the MAX from your VAX!

Get the MAXimum from your existing VAX investment through Compaq's continued commitment to the VAX range of computing products.

As you are no doubt aware, Compaq has announced the end of the VAX platform.

COMMITMENT

Compaq recognizes that for many of our customers, there will be extensive and long term support requirements for their investments in VAX. Because we value all of our customers in North America, IGS Systems Inc., will continue to fulfill your VAX equipment needs. The option to buy quality - remanufactured products is designed to protect your initial IT investment by ensuring the availability of Compaq branded equipment long after the manufacturing cycle has ended. Compaq will continue to service VAX at least until 2010 and will continue to enhance Open VMS for VAX indefinately.

VAX PRODUCTS

We recommend that you contact this reseller for your used equipment needs.

IGS Systems, Inc.

Bobby Ahearn CEO IGS Telephone/Fax:
Tel: 508-866-1171
Fax: 508-866-6868

Toll-Free
1-888-DECPART
(1-800-332-7278)

For futher information on obtaining VAX systems:
Visit: http://www.decparts.com

Contact Bobby Ahearn CEO; Bobby@decparts.com 508-866-1171 x 235

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