INDIA: HP HIKES CARTRIDGES PRICES

[Anonymous]

http://www.ciol.com/Channel-News/News-Reports/HP-hikes-cartridges-prices/18808109167/0/
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.

[Author]

August 21, 2008 at 5:01 PM