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 user 2008-08-21 at 5:01:04 pm Views: 76
  • #20690
    HP hikes cartridges prices

    Channel partners upset with the hike, suggest that other vendors may follow suit
    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

    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.”

    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

    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.