Leader: HP?s just a dedicated follower of fashion
Certain things are constantly going in and out of fashion. Whether it?s a 60s, 70s or even an 80s revival, some things go out of style and others come in. Why should the channel be any different? The number of vendors that have decided to throw out their channel allegiance with the same nonchalance that they probably got rid of their winkle-pickers is growing at an alarming rate. You take your eyes off them for a minute and before you know it another one has jumped on the bandwagon.
This week?s entry into the We?ve Tweaked Our Channel hall of fame is none other than Hewlett Packard (HP). In an statement to the press, HP has said it is looking forward to building a more streamlined channel model. In fact, this means it is calling upon the services of two of its European resellers to bolster its distribution channel. Info Products and Italian reseller Raphael will join Northamber and German firm Actebis in HP?s extended configuration to order programme. Northamber and Actebis already act as configuration partners looking after Vectra business desktop PCs; Info Products will join in on the Vectra range and Raphael will configure the Brio SoHo offering.
Channel pundits say that HP is reacting to initiatives by Compaq, particularly its build-to-order project and its attempts to form closer relationships with small users through its Home & Office project. One thing is certain ? it would not be doing it unless there were some serious cost savings to be had. So another vendor points an accusing finger at the channel and says: ?You?re just too expensive.?
An interesting side issue brought out by HP?s latest plans is the question of what happens to the price of HP kit. Only recently, HP cracked down on some of its channel partners to prevent products being sold at below cost price. One of the main reasons it felt it had to act in such a manner was to ensure its channel would be able to continue generating sufficient funds to market the products being sold. Strange, then, that it is looking to adopt a model which will allow it to cut the prices of the PCs it sells to small users.
No one can fault HP for wanting to cut costs and improve profitability, but if the company is planning to build with its channel and not against it, perhaps it should take care over the signals it is giving out.