HP denies hurting printer resellers
But rival vendor claims that demands put VAR partners in 'no-win' situation
Hewlett-Packard (HP) has attempted to hit back at accusations that it is harming its VARs by increasing its direct business in the printer market.
Sources have told CRN that HP is asking resellers to supply it with the names of their most prized clients, claiming it wants to avoid targeting them and thus competing with its own partners.
"Resellers fear that the scheme puts them in a no-win situation," said Kevin Spinks, SMB director at rival printer vendor Lexmark.
"They can surrender the names of their best clients and risk arming HP with a database of client information it can use later on. But by defying HP, they risk upsetting their supplier.
"The worst-case scenario is that by failing to name names they will be giving permission to HP to go and sell directly to their clients."
Andy Vickers, channel and SMB director, HP UK and Ireland, said: "Through PartnerOne we strive to have a two-way dialogue with our partners.
"For example, we commission analyst surveys and conduct our own biannual reseller surveys on top of the regular feedback we get direct from partners.
"Part of HP's channel strategy is to improve both the Total Partner Experience and the Total Customer Experience through our business partners. Both HP managers and employees are now measured against these initiatives."
Despite HP's reassurances, Nick Culley, product marketing director at distributor Midwich, said that HP's alleged covert direct-selling activity is the talk of the channel.
"A lot of resellers are heavily reliant on HP, and now they have something of a Hobson's Choice imposed on them," he said.
Sue Richards, managing director of HP Centre of Excellence EBM, also confirmed that HP has been increasing its direct strategy.
"HP claims it isn't doing a lot of business via its website, but the problem is that it's forcing VARs to match its prices. At one point a few months ago, it even had products going for below our cost," she said.
"It is also doing direct mail shots, and some of these are hitting my customers and customers are demanding the cheap prices."
Vickers conceded: "HP is doing more direct marketing and it is being driven by desire to grow overall market share.
"There is a large market out there that we are not touching. For example, our PC market share is 20 per cent, that is 80 per cent we are not addressing."