AUSTRALIA : PHOENIX TONER & HP CALL IT QUITS

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AUSTRALIA : PHOENIX TONER & HP CALL IT QUITS

 user 2009-11-13 at 11:03:00 am Views: 90
  • #22922

    http://www.arnnet.com.au/article/323655/updated_phoenix_toner_hp_call_it_quits?fp=16&fpid=1
    AUSTRALIA : PHOENIX TONER & HP
    CALL IT QUITS

    Consumables distributor denies it will close up shop
    Consumables and printer distributor, Phoenix Toner, has denied
    speculation that it will shut up shop after cutting ties with tier-one
    vendor, HP.General manager, Don Bentley, confirmed the distributor ended
    its relationship with HP but was adamant Phoenix made the decision, not
    the vendor.“We have surrendered the relationship – it was a mutual
    agreement. We sat in several meetings and discussed this amicably and
    came to an agreement,” he said.Ever-diminishing margins, along with
    significant mandatory stock holdings, made the relationship an
    unprofitable one for Phoenix, Bentley said. While HP was a significant
    portion of total revenue, return on investment was low, he claimed.

    The
    pair have been working together since November 2003.
    “We were
    holding millions of dollar in stock, and our owner didn’t want to play
    in that area anymore,” Bentley said. “The business didn’t want to have
    that amount of cash tied up in something that wasn’t profitable.”Under
    the final agreement, HP has taken back all residual stock at cost price.
    The final consumables were being shipped back today, Bentley said.An HP
    spokesperson declined to comment on Phoenix’s decision but confirmed
    that resellers were advised of the end of the relationship on October
    15. The vendor continues to distribute ink, toner and paper through
    authorised distributors, Ingram Micro and Synnex, the spokesperson said.

    Phoenix
    is now focusing on remaining vendors including Brother, IBM’s
    InfoPrint, Kyocera, Canon, Oki, Konica Minolta and Epson.“We’re not
    closing up. As I told the staff here, before we were an HP distributor
    we still had all the other relationships with other vendors,” Bentley
    added. However, he didn’t rule out a restructure of its operations and
    staffing.“We will have to take a look at that moving forward – HP was a
    lot of volume, and we moved our warehouse to Asquith [suburb of Sydney]
    because of that,” Bentley said. “Without the HP products, we might
    consider a restructure. The good thing is we owned the premises.”