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HP: Market relevance shrinking for traditional printer resellers

HP: Market relevance shrinking for traditional printer resellers

Majority of the vendor's printer partners may still be traditional box-type printer resellers but they are becoming less competitive in the market

A majority of HP’s printer partners may still be traditional box-type printer resellers but they are becoming less competitive in the market, according to the vendor.

HP has been making a big push in the managed print services (MPS) space and saw contract-based selling as the future for the printer environment.

“It will be increasingly hard for channel partners that only sell printers or supplies to be competitive in the marketplace,” HP vice-president of imaging and printing in Asia-Pacific, John Solomon, said. “They are going to find margin pressures extremely high.

“So we think, long term, channel partners that really develop more contractual selling capabilities are going to have a competitive advantage.”

At this point, a majority of channel partners in Asia-Pacific are still traditional printer and supplies resellers. But over the past three years the number of resellers that break out from box-type reselling and into more service-based roles have increased significantly. HP’s MPS business has jumped by 50 per cent and it has seen a lot more growth in contractual selling than transactional selling.

“We hope, especially in Australia, New Zealand and major countries in the region, we can have more partners sell contractual services to the SMB space,” HP Laserjet printer manager, Leong Han Kong, said.

HP usually deals with enterprise MPS customers through a direct sales model, but it wants the channel to go after the SMB to mid-market MPS space.

Spandas Lui travelled to the HP Innovation Summit in Singapore as a guest of HP.


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