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Networks Inc. adds hardware sales

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Shooting a game of pool while puzzling over a client’s network problem is now just a memory for engineers at Networks Inc. The billiard table at the West Des Moines network engineering firm was removed recently to make room for two engineers who had been added to its staff of 15.

“We’ve still got our two pinball machines, though,” said Chris Larson, who started the company with his twin, Chad, 10 years ago.

Growth is a fact of life at Networks, which in June 2003 added computer hardware sales to its core business of supporting companies’ computer network systems.

Now, the company generates more revenue each month from reselling name-brand hardware than it does from the billings generated by all of its support engineers combined, said Chris Larson, who declined to disclose sales figures.

Networks, which has a client base of more than 750 customers, is seeing the majority of its new growth from medium-sized businesses that “want to write one check” for hardware and support and know that they’re dealing with a company that will be accountable for what it sells, said Kevin Wichtendahl, Networks’ sales manager.

“We start with service, not the product,” he said. “For most firms, it’s the opposite. They do service in order to sell you the equipment.”

Networks’ service territory extends from Fort Dodge to Kansas City. In addition to servicing clients’ systems, the company can now order hardware for its customers for delivery and installation, usually the next day. The just-in-time arrangement has allowed Networks to continue to operate from its small storefront operation in West Des Moines, rather than moving to a larger warehouse facility.

The Larsons founded Networks Inc. after building a reputation as engineers at Computer Supply Store, now Pomeroy IT Solutions in Urbandale.

Wichtendahl, a former customer of Networks as a salesman of 3Com Corp. and later Cisco Systems Inc. products, had approached the Larsons early on about selling hardware. But the two didn’t want to get into a side of the computer business which at the time required maintaining a large inventory of equipment. Now, with the Internet for ordering and the hardware companies’ distribution centers, it’s a different matter.

“About 80 percent of our stuff ships out of Chicago, and it’s here the next day,” Wichtendahl said. Because the company already has the technical certifications required by the manufacturers, “if it’s got a logo, I can sell it,” he said. “The biggest hurdle is having the certification to sell it.”

The technical certifications held by the company’s engineers also enable it to receive manufacturer discounts that help it to be competitive, he said.

Wichtendahl jokes that he discovered he could sell while he was the local area network administrator for Ruan Transportation Management Systems, where he said he had to personally present every purchase order to John Ruan III for his signature. Now, he’s looking to hire additional outside salespeople for Networks who have technical backgrounds similar to his own.

“My challenge is keeping the bar as high for the sales staff as it is for the engineering staff,” he said.