SMB Nation Blog

SMB Nation has been serving the Bainbridge Island area since 2001, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

HP Snubs Small Business IT Resellers

Small Business Saturday (November 29th) was a day to both celebrate and do good business with your local small business on “Main Street.” As I wrote this, I was hosting a Small Business Saturday event at Bainbridge Technology Solutions, a local computer storefront reseller .

brandonSo time for some Small Business Saturday storytelling . Brandon Byron is the owner/operator of Bainbridge Technology Solutions. Earlier this year, Byron received notification from HP that it was terminating the wholesale motion of its printer ink to smaller resellers who didn’t meet a annual quota of $30,000 USD in sales. The same fate also awaited the stationary store on downtown “Main Street” (really known as Winslow Way) called Paper Products. The sales termination date was November 1, 2014 (or about a month ago). HP had a procedural exemption step called the “Small Town Exemption.” This was an appeals process that Byron undertook showing community need, demographics. He even submitted photographic evidence depicting the character of the community. Sadly his request “ask” was denied. Even sadder was Byron’s belief that HPs decision will lead to Paper Products closing as it has a greater dependency on its HP ink sales than Byron. He will survive with a diversified practice that includes managed services for local small businesses.

I continued my investigation by going up the food chain. Bainbridge Technology Solutions is a reseller partner for D&H Distributing, one of the top five distributors in the US. I reached out to D&H Distributing who confirmed the scenario but further declined comment. I get that but, translated, there was nothing D&H Distributing could do.

So what’s it all mean? Small town customers will likely purchase their HP ink from online retailers and LARs such as CDW. I found an interview from HP’s Steve Sakumoto, VP and General Manager, US Supplies Sales Organization in OPI magazine. It’s actually a good article you can read here. Basically, it amounts to brand protection from HP’s point of view. But it sits wrong with me when an enterprise business tries to unsuccessfully understand small business. It’s a different dialect and culture.

I’ll continue to pursue this story – stay tuned for updates. And please support your local small business IT services provider and reseller.

Dell KACE Achieves 10K Customer Milestone, Shares ...
Novus Takes Next Big Step in Lync Services Busines...
 

Comments 2

J Porter on Wednesday, 10 December 2014 14:27

We're a relatively small biz, but we do a prettty good supplies business built up over about 30 years. HP told us our web site wasn't suitable for selling HP supplies. We did some work on the site, but HP was never happy with it. After talking with some others, we have concluded that HP just didn't like us and used any excuse to shut us down.
Something really stupid is gong on. We're an Authorized Partner and can purchase/sell HP printers. Now, is there a person in the world that really believes we'll continue to sell HP printers if we can't sell the supplies to go with them???

Another new HP invention requires dealers to report (via distribution) who products are being sold to. Soon, HP will have all the end-user info which will give them the ability to bypass any and all dealers. Dealers must provide customer names, addresses (physical and email), type of customer and even phone numbers.

We're a relatively small biz, but we do a prettty good supplies business built up over about 30 years. HP told us our web site wasn't suitable for selling HP supplies. We did some work on the site, but HP was never happy with it. After talking with some others, we have concluded that HP just didn't like us and used any excuse to shut us down. Something really stupid is gong on. We're an Authorized Partner and can purchase/sell HP printers. Now, is there a person in the world that really believes we'll continue to sell HP printers if we can't sell the supplies to go with them??? Another new HP invention requires dealers to report (via distribution) who products are being sold to. Soon, HP will have all the end-user info which will give them the ability to bypass any and all dealers. Dealers must provide customer names, addresses (physical and email), type of customer and even phone numbers.
Armstrong on Friday, 23 June 2017 02:12

Envelope Printing - Welcome to printing.com, the home of low cost, hi-definition print with beautiful design from local printing.com studios.

[url=http://www.printing.com/uk/choose-your-product/envelopes-printed]Envelope Printing[/url] - Welcome to printing.com, the home of low cost, hi-definition print with beautiful design from local printing.com studios.
Already Registered? Login Here
Guest
Friday, 28 February 2020