HP answers Care Pack complaints

Resellers unhappy over practice of contacting customers over Care Pack renewals

HP has defended its policy of contacting businesses when their Care Pack Service warranty has expired, despite complaints the channel.

With every sale of HP products such as servers, PCs, printers or software; resellers upsell the HP Care Pack, which offers customers extended warranty or support for those products for a set amount of time. These can then be extended.

Phillip Mitchell, managing director of VAR IntraLAN, said the vendor’s practice was having a negative impact on his relationships with some customers.

“We have been installing HP servers for 15 years and are a registered reseller. We sell on average a server a week,” Mitchell said. “With every client we register a Care Pack, but HP appears to be approaching these customers directly just before the expiry date and offering renewals at a lesser price than we can buy them.

“This is giving us a bad name and is losing us business. I have no problem with HP contacting customers after the expiry date because we will have already handled the renewal, but their actions are undermining our relationship with our customers.”

However in a statement, HP said: “HP informs end user customers when their existing support entitlement - provided by an HP Care Pack Service – has expired. Each customer is sent a letter a few days before expiry of their existing support…

“This letter clearly states that the customer can contact their normal HP supplier if they wish to purchase, but also provides the option to buy directly from Care Pack Sales in instances where they would prefer to do so. The prices we quote are all RRP.

“HP has had feedback from various channel partners stating that they feel it is a valuable service in driving incremental business for them,” the statement said.