HP's dealers steer clear of PC project

The vendor's resellers are voicing doubts over demand for the rapiddelivery Project Steer

Hewlett Packard's Project Steer PC delivery service will not work, according to HP resellers.

Most dealers contacted by PC Dealer wished to remain anonymous, and agreed HP will not create enough demand for Project Steer to be a resounding success.

But they were all encouraged by HP's fight back against Compaq (PC Dealer, 9 October) and were pleased that the vendor has responded to Compaq's recent price cuts.

PC Dealer revealed HP planned to begin a sales initiative called Project Steer (PC Dealer, 18 September), a rapid delivery service for Vectra PCs.

The scheme was launched last week to corporate customers through HP direct dealers and distributors Ingram Micro, Northamber and Westcoast.

HP PC and peripherals marketing manager John Yelland said supply does not generally meet customer demand. 'We can deliver with short lead times and attractive prices. We are getting the pipeline stocked up with product from Grenoble.'

But a senior source at one HP reseller said: 'Steer has almost zero margin and lots of hassle. You can't create demand overnight and you need demand before fulfilling it.'

One HP distributor insisted HP was not forcing it to stock up and said two-day delivery was a good idea. 'But the policy should be to sell through distribution, not into it,' he said.

Yelland admitted HP has reviewed prices since Compaq's recent price cuts, but said: 'Compaq's cuts were on old stock. Steer is for newer models.'

Another dealer said: 'Compaq leads the way and HP must spend to get anywhere.'