Paul Seed and Ken Kalopsis started StarTech.com two decades ago when they discovered a demand for a now obsolete item.
“”We bought a dust cover and found it was too expensive,”” said Seed, president and co-owner of London-Ont.-based StarTech.com Ltd. “”We started making dust covers and it kind
of evolved from there.””
Back then they also manufactured air filters, static mats and other peripheral products for computers. Today, StarTech.com has over 3,000 of its own product lines, about 600 to 700 of which are distributed through Ingram Micro, Tech Data and EMJ in North America. The products are manufactured offshore in China and Taiwan.
Videos to high tech
The duo, which previously ran a video delivery service called Video Van and were fraternity brothers while attending the University of Western Ontario, started StarTech Computer Accessories out of the basement of a house in 1985.
“”Back then people still used dust covers for printers,”” said Seed. “”That was before people realized they are going to throw the PC out before it gets dusty.””
The company now employs 100 people, 15 of which are located in its warehouse in Columbus, Ohio where its U.S. distribution is based.
Five years ago, Seed and Kalopsis decided to change the name of the firm to StarTech.com as they realized the Web was the most effective medium to disseminate product information to customers.
Jack of all product lines
Calling itself, “”The professionals’ source for hard-to-find computer products,”” StarTech.com specializes in three product lines: computer parts and cables, computer audio/video products and server management solutions. These include power supplies, cases, I/O Cards, KVM switches, Server Remote Control, cabinets/racks, converters, extenders and splitters.
“”The information we have on products is a lot more extensive than most of our competitors,”” said Seed, adding StarTech.com has online tools to help resellers choose the right product for their solution. One of the tools, for example, is a KVM planner that takes resellers through a series of questions to determine which KVM switch they need.
StarTech.com recently launched a portal to give resellers access to information on special promotions, detailed information on its products as well as pricing and availability. All customers are eligible for the portal and are required to contact StarTech for a login id and password to access it.
Seed said the decision to create the portal was in response to resellers’ needs.
“”Since most of the visitors to our Web site are end users, we couldn’t put detailed reseller information on there,”” he said. “”We decided to create a gated area that has promotions specific to resellers that they could access that the general public couldn’t.””
StarTech.com’s Web site also links to VAR’s sites for users interested in purchasing products. It also provides links to distributor’s Web sites.
StarTech.com has 10,000 customers in North America of which 65 to 75 per cent are in the U.S. with the remainder here. The manufacturer started to work with Ingram Micro Canada around two years ago. About half of its sales here are through its Web site with the other half through distribution.
“”In Canada we’re starting to work more with distributors,”” said Seed. “”Previous to that we were a little more of a direct model in Canada.”” Approximately 90 per cent of the company’s business in the U.S. is through distribution where StarTech started working with Ingram Micro around eight years ago.
The firm recently opened up a U.K. branch in Northampton.
StarTech.com is currently working on a new program for resellers called the Platinum Partner Program that will be launched sometime this fall. It currently has the Advantage Partner Program, which gives resellers a dedicated account manager, free product training, free live, lifetime technical support, Web site training and tools and reseller portal. The Platinum Partner Program will offer VARs priority technical support, listed in “”Where to Buy”” on StarTech.com’s Web site, and volume discounts based on the number of SKUs purchased annually.