Compaq is to end the discounts it has been offering the channel for the early payment of invoices in a move which pre-empts a revision of its Ts&Cs.
The news has disappointed many dealers, but a Compaq representative denied the discount will be scrapped altogether, saying it is simply in line for revision.
One Compaq dealer said: 'I am not surprised; whenever Compaq has a good quarter the Ts&Cs get revised.'
Ultima managing director Kevin Robinson said: 'If Compaq were to start reducing the discounts it makes available then we could all start to struggle.
If there is to be a change we would be looking to secure any margin that is left.'
A Compaq channel source said many of the bigger resellers had been relying on early payment discounts for soft margin and should be able to soak up any reduction without significant adverse effects.
Compaq commercial product manager Jonathan Adams said: 'I can't confirm or deny that any changes will be made.'
Mike Norris, Computacenter chief executive officer, said: 'Over the past few years, Compaq has followed a policy of tweaking its Ts&Cs every quarter rather than making one-off sweeping changes. It doesn't need people to pay on time as badly any more. Plus if you're consistently late with your payments, Compaq could easily just stop delivering to you.'
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