The OEM has edited its authorised reseller policy, to require resellers to collect information about end-users for reporting to HP.
Actionable Intelligence (subscription required) reported on the changes, which came into force on Monday 20 October, and which are the latest expansion of the OEM’s partner programme revamp, which it first announced last November.
The programme’s changes last year were an attempt for the OEM to create more interconnected partnerships with channel partners in the USA, with the main issue being that an authorised partner would invalidate its agreement with HP if it resold HP products to a non-authorised reseller instead of the end-user – a big issue in terms of cartridge supply.
Steve Sakumoto, Vice President and General Manager of US Supplies Sales Organisation, Printing and Personal Systems, stated at the time that HP’s distribution system is switching from “open” to “authorised”, adding that “we’re basically asking all of our reseller partners just to register with HP so we can know who they are”.
Then, in April HP announced it would ban US partners from selling its consumables unless they had registered, with partners required to comply and obtain “Qualified” status, or be prevented from selling HP consumables – with this due to come into effect on 1 November.
The new changes now force resellers to provide end-user information to the OEM, with an email sent to authorised partners notifying them that as of 20 October, HP will collect the information via distributors and partners, who will have to provide this when placing orders, and this information includes customer names and addresses.
HP’s argument is that the data will help support its improvements in support and shipments, with resellers who already report directly to HP needing to report this information to the OEM as well, and the only exception will be in the case of restocking products. Concerns over selling third-party consumables were addressed by Sakumoto, who said “we full support choice in the marketplace”, though reseller numbers have almost halved since the reforms were announced last November.
David Connett, Editor and Publisher of The Recycler, stated: “Ever since HP sold printers and consumables the dealer has owned and managed the relationship with the customer, but these changes, along with its ongoing MPS strategy, are about the new HP Inc (or HP Ink) trying to own and eventually manage the relationship with the customer.
“For the smaller players in the market, the relationship with the customer is the most valuable part of their business, and I can’t see many of them giving that relationship to HP. So they will walk, and sell other printers and consumables, and in the meantime increase the sales of non OEM product. Good for the other printer brands, and good for the non-OEM consumables channel, but on the surface another doomed HP initiative.”