ProCurve offers VARs incentive

Hewlett-Packard's networking unit launches new scheme that rewards public sector wins

Hewlett-Packard’s (HP) ProCurve networking unit has launched a new incentive scheme that rewards resellers for recruiting public sector customers.

The programme offers VARs that introduce a new customer to ProCurve a three per cent margin on all ProCurve sales until March next year. A new customer is classified as one that has not purchased ProCurve products since January 2003, and resellers will have to identify new customers by October of this year.

The firm is also offering the education sector a summer promotion of a 10 per cent discount to tap the market in its most active period.

Luana Holland, ProCurve marketing manager UK, said: “We know there are a lot more public sector VARs out there that we are not getting to. The programme rewards any reseller by giving more margin to new business they acquire.”

Jon Weatherall, HP ProCurve country manager for the UK and Ireland, said: “The public sector has always been price-competitive as customers tend not to throw money around like companies in the banking and finance sector.” The news coincides with HP releasing its third quarter results (see box) with ProCurve chalking up strong growth of 91 per cent year on year in the UK.

However, one source was cautious of the ProCurve reward scheme and feels that some bonuses do not justify the efforts of resellers. “Considering VARs are recommending a public sector account, three per cent is a small margin for the effort needed,” said the source. “If I were to refer a larger account I would be asking for a larger margin.”

The source added that resellers should not have to rely on vendor margin incentives and if resellers establish good customer relationships, then a healthy gain should be attainable.