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 user 2008-08-21 at 5:00:31 pm Views: 57
  • #20685
    HP hikes cartridges prices

    Channel partners upset with the hike, suggest that other vendors may follow suit
    NEW DELHI, INDIA: In view of the rising costs of raw material, transportation and other supply chain costs, HP has hiked the price of its LaserJet and DesignJet cartridges with effect from August  2008. While for HP LaserJet cartridges and DesignJet cartridges the hike is to the tune of approximately five percent, the hike on business inkjet and small format inkjet, with certain exceptions and variation by cartridge, is 10 percent.However, HP has excluded some products from the price hike to help customers cope with the impact of price adjustments.This sudden hike has not gone down well with partners across the country. Several partners indicated that the hike is bound to affect their sales figure in view of the already low margins and price conscious customers.While partners dealing with corporate customers are likely to feel the pressure only to a certain extent, the ones who deal with SOHO customers will witness a major impact on their businesses.

    Indicating the same, Puneet Singhal, President of New Delhi-based Computer Media Dealers Association (CMDA) stated, “This is not a welcome change for partners and in view of the already low margins it is likely to create further sales pressure. On behalf of the members of CMDA, we will discuss the matter with HP representatives and request them to look into the situation.”

    Naresh Kohli, CEO of Delhi-based International Computer Resources added, “The price hike is quite steep and is something that will not be easily accepted.”

    Rajesh Kapoor of Kolkata-based Sparket Marketing opined, “Since I deal mostly with the corporate, the impact on my business would not be severe. However, the channel that deals with end consumers will witness a major impact on their sales figures. Besides, with HP hiking its prices other vendors may follow suit.”

    “With the appreciation of the dollar the hike was bound to take place. However, this sudden change will affect our business to a considerable extent,” reiterated A Akhtar Hussain, Proprietor, Chennai-based Challenger Computer.

    On the other hand, when asked the reasons behind the hike, Puneet Chadha, Director—Supplies Business, Imaging and Printing Group, Hewlett-Packard India stated, “The price increase is in response to rising costs of material, transportation and other supply chain costs. However, HP is working closely with its partners to ensure smooth transition, as with any price change. We do understand that there are price-sensitive segments which can be impacted in case of a hike, and have decided to absorb the costs without effecting any change in the price for those segments.”

    To ensure that the impact has minimal effect on their partners the company has not revised the prices of certain models. For example, the price of HP’s Everyday cartridge 27B, 21B, which is mostly used by customers to print draft documents in simple black color, continues to be priced at Rs 399. Other cartridges whose price has remained the same include HP 900 Inkjet Print Cartridges, HP38 Ink Cartridges, HP76 Ink Cartridges and HP Edgeline MFP Supplies.