Sam's Club teams with Geeks on Call for PC service
NEW YORK (Reuters) - Wal-Mart Stores Inc's (WMT.N: Quote, Profile, Research, Stock Buzz) Sam's Club warehouse store division is launching a pilot program with computer repair services company Geeks on Call Holdings Inc (GOCH.OB: Quote, Profile, Research, Stock Buzz) to offer technology services, like new computer set-up, to its members.
The pilot program, which is launching in the next few days, will involve 20 Sam's Clubs located throughout the Baltimore, Washington, D.C., and Virginia areas, Geeks on Call said in a filing with the U.S. Securities and Exchange Commission.
Geeks on Call will have no physical kiosks in the clubs because it will only offer in-home or in-office services, such as setting up a wireless network or installing anti-virus protection on a computer.
To advertise the Geeks on Call services, a sticker will be placed on computers sold in the participating Sam's Club locations, directing shoppers to call Geeks on Call. There will also be signs in the Sam's Club warehouses, providing the Geeks on Call phone number.
Sam's Club members will be able to purchase Geeks on Call services at roughly half price, said Geeks on Call Chief Executive Officer Richard Cole. For instance, Cole said a typical computer set-up would cost $160 to $200, but a Sam's Club member could purchase the service for $98.
Consumers pay an annual fee to shop in Sam's Club stores and get discounts on everything from office supplies to fresh food.
Like its competitors, Sam's Club has added more electronics to its merchandise mix in recent years. Many consumer electronics retailers have looked at selling technology services as a way to differentiate themselves and make extra money by helping shoppers use their increasingly complicated electronic gadgets.
Wal-Mart is opening "Solution Stations" in a small number of its Dallas-area discount stores to offer technology services, like home theater installation and computer repair, in a test with Dell Inc (DELL.O: Quote, Profile, Research, Stock Buzz).
(Reporting by Nicole Maestri, editing by Gerald E. McCormick)
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