HP overhauls rebate model to lure services partners on board


HP overhauls rebate model to lure services partners on board

Microscope contributor

HP is lowering the barrier to entry for the Services Specialisation Programme (SSP) after admitting the Penetration Rate Index (PRI) it used to measure reseller sales did not work for some larger partners and locked out many smaller ones.

The tech monster kicked off a review of the PRI metric last year following criticism in the UK and the US that the model was too complicated and unfair.

Baseline qualification to SSP in EMEA included sales and technical certifications, a customer satisfaction index but also a PRI score of 1.2: setting resellers a target to grow at least 20% higher than the country average to remain in the SSP fold.

This was a "hard threshold" that made the difference between inclusion and exclusion from the "club", said HP services partner manager Paul Early, who added that a revamped scheme will be in place from 1 November.

"For 70% of the partners the scheme was OK but for 30% it wasn't, they were typically at the top end of our resellers that deploy their own services and sometimes found it difficult to compromise on how to embed HP services," he said.

The PRI entry level will be lowered he revealed, "It won't be prohibitive for smaller partners because they will actually be able to reach some of the benchmarks...and for top end partners it will become easier to collaborate with HP".

MicroScope understands that the entry level PRI will be lowered to 0.75 to 1 times the country sales average, extending through to 2 or 2.5.

Early said he could not confirm the details until H2, the second half of HP's fiscal year starting May. 

"Basically the entry level will be lowered and there will be a progressive curve, we'll pay out more PFR, more soft rebates and better payments terms around warranty the higher [in the scheme] that you climb," he told MicroScope.

As revealed previously, HP is also integrating contracted services sales in the SSP, providing multi-vendor support and cutting prices to win back partners that opted to use third party maintainers.

It has also tasked distributors to more than treble the 150 UK resellers that currently push its contracted services in the market. 

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