HP cancels discounts on large resellers next year

The price of servers, storage devices, and networking tool products may rise after HP cancels out discounted offers to large resellers next year.

Hewlett-Packard planned to cancel the backing up of top gold partners in the European market from November 1 onwards, but the move has been postponed.

Kevin Matthews, the HP UK and Irish enterprise Server, storage devices and networking channel Manager, has confirmed that HP is fully reviewing the top resellers ' remuneration package and will start making some adjustments in the second quarter, February.

"We want to take advantage of our partnerships with distributors in the medium and small resellers markets and we have a lot more work to do and we are working on how to deal with the current remuneration model, which is related to market coverage and growth," he said. ”

Hewlett-Packard has assured resellers that the total fee will not be reduced, but that the margin that was paid to gold partners in the past would be transferred to small and medium sized resellers.

In addition, they warn that the price for large resellers will improve because they have little upfront input, benefiting mainly from back-end discounts.

Commercial negotiations between large resellers and distributors are under way and agreement can be reached after the discount adjustment is complete.

Matthew said he knew the negotiations were under way but could not affect them.

People familiar with the matter said HP had planned to release the adjustment next month, but it has been postponed because the entire European plan has not yet been implemented in every country, particularly in the UK.

(Responsible editor: The good of the Legacy)