HP moving aggresively to close special bid loophole

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HP moving aggresively to close special bid loophole

Microscope contributor

HP is trying to close a loophole in the special bid process that resellers are exploiting to get hold of products at significantly cheaper prices.

After HP agrees a discount for a specified number of units, resellers can designate up to three distributors to ensure stock availability, but in some instances they are placing an order for the full amount with each.

According to distributors, HP is tackling this issue head on and will more effectively police partners across all products and markets.

Alex Tatham, sales and marketing director at Westcoast, said HP will more closely match the units agreed under a special bid with distributor shipments to ensure they are not exceeding the quantities that were authorised.

"Resellers should be warned to take this seriously," he told MicroScope.

HP is taking a "softly, softly approach" as distributors update systems added Tatham but from fiscal New Year starting 1 November the vendor will "clamp down" on the issue, he insisted.

It is understood that HP will pursue resellers which benefit from this special bid fraud while it will not repay distributors that exceed the authorised shipment quota.

The whole process of OPG was designed to help resellers close deals and not punt low-priced kit into the market, said Andy Dow, group marketing director at Computer 2000.

It was commercially sensible that HP tries to ensure special bid shipments go to the intended recipient, said Avnet Technology Solutions UK sales director Paul Cook but he had reservations about enforcement.

"This will be difficult for distributors to police as they do not have the systems and processes in place to spot this type of misdemeanour, HP will need to do this," he said.

HP was unavailable for comment at the time of going to press.

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