HP streamlining gets channel thumbs up

Partners pleased with vendor's efforts to offer flexible rebates and simplify its messaging to customers

HP’s partners have welcomed the vendor’s efforts to simplify its business model and offer competitive channel compensation.

The firm unveiled several changes last week including the merging of its IPG and Supplies business into one division under the Solutions Partner Organisation (SPO), and developing a tailored product set for its small business small office (SBSO) customers (Channelweb 1 April).

Other significant changes centred around its rebate offering to partners, with the vendor continuing its new Pay for Results compensation model announced in Q2, aggressive upfront pricing for its PSG and IPG products and fixed compensation rates based on targets for both resellers and distributors in areas such as accessories, PCs and notebooks and thin client technology.

Dave Poskett, director of SPO UK and Ireland, said: “We are looking to streamline the business and simplify the operational efficiencies of how we work with our distributors and resellers.”

Alex Tatham, sales and marketing director at Westcoast said: “I think HP has listened to distribution partners and the model it had in Q2 was spot on. We welcome these latest changes, they will make working with HP even clearer.”

Andy Gass, managing director of Computer 2000, agreed.

“Having a more coordinated approach between Supplies and IPG is absolutely the right thing for them to do, and I think HP should be applauded for trying to make its overall business and its compensation model simpler.”