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Hybrid PfR model right for current climate, says HP

Microscope contributor

HP may extend its hybrid rebate model beyond April to give hard pressed enterprise hardware and services resellers a clearer view of earnings in these unpredictable times. 

For HP's fiscal Q2 running February to April, the Enterprise Servers, Storage and Networking (ESSN) unit and the Technology Services division removed the entry level Pay For Results (PfR) rebate target of 80%.

This meant resellers "earned from the first dollar" they transacted with the vendor, said Kevin Matthews, HP ESSN channel manager for the UK and Ireland.

Accelerators remain in place for those that manage to surpass the 100% target with the ceiling set at around 210%, HP confirmed. 

"The combination of a fixed and target-based rebate system gives partners predictability and us a lever to drive growth of the overall number," he told MicroScope. 

Only Gold partners can accrue PFR rebates following programmatic changes HP made in 2008 when it stopped paying out PFR to Preferred Partners.

Matthews noted the "level of uncertainty" voiced by some partners in the face of the fragile economic recovery.

The previous tweak to ESSN rebates came in 2008 in the midst of the recession and remained in place until the start of H2 2009 when the market picked up.

This current iteration runs until May but HP will "assess" the landscape to decide whether to continue running PFR in its current guise.

Matthews said HP will give partners one month's notice of any changes.

Related Topics: Desktop PCs, VIEW ALL TOPICS

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