Compaq pricing plan makes resellers erupt

Dealers are furious that the vendor?s new Ts&Cs and pricing policy will force them to renegotiate contracts with customers

Compaq has come under a hail of fire from the channel following its decision to alter its Ts&Cs and change the way its kit is priced.

The vendor has scrapped the typical buying prices (TBP) formula in favour of a less rigid pricing structure. In a letter to its resellers, Compaq calls on the channel to show more flexibility over selling prices.

TBP published prices are typically higher than street prices and discourage smaller customers from buying Compaq kit, the company said.

The move has prompted accusations that Compaq has made it even harder for dealers to maintain an operating margin when selling Compaq kit and that under the new policy many contracts are null and void and will have to be renegotiated with customers.

Martin Clarke, sales and marketing director of Lapland UK, said his customers were unhappy with the change. ?Every quote prior to receipt of Compaq?s letter is now invalid,? he said. ?We have to go back to our customers and tell them that prices have changed, discounts no longer apply and that the whole contract will have to be renegotiated. We will definitely lose business as a result.?

Compaq commercial marketing manager Peter Blampied rejected the criticism. ?Dealer margins have never been our responsibility, we?ve never guaranteed them,? he said. ?SME users need to know that the TBP practice was not a true reflection of the price they?d end up paying, that?s why we have taken these steps.?

Compaq?s price restructure would clean up the channel and allow dealers to present themselves in a more favourable light, he argued. ?Dealers had been showing customers the TBP list and saying I can knock 10 per cent off the lot for you. This doesn?t create the right sort of image for Compaq. The intelligent dealer should be able to go back to his customers, add more value and win more margin on the sale.?