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What is the HP Agent Program? |
HP's Agent Program rewards HP authorised Agents for influencing customers to purchase HP commercial products, services and solutions directly from HP. This is a global program aimed at both existing and new channel partners. |
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What is the difference between this and other Agent Programs from HP? |
HP has several existing programs worldwide - each of which has been developed independently of each other. For the first time, we have developed a consistent, global Agent Program framework, leveraging the best existing practices. The Agent Program enables both existing and new types of partners such as SIs, ISVs, Consultants, and other IT professionals who influence sales of HP hardware and solutions, but prefer not to become fully authorised resellers to earn compensation for referring their customers to purchase directly from HP. |
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Why was the HP Agent Program put in place? |
The program has been developed to address several key business needs.
1. Enables new partners to include HP hardware in their overall customer solution
2. Provides an expanded footprint in customer market segment
3. Combines efficiency of Direct with the leverage and reach of partners
4. Maintains the competitive advantage of the increased leverage we have in the market via partnership
5. Increases market reach to new and emerging sales influencers in growth segments by providing a competitive reward mechanism
6. Provides our partners with a choice of business models with HP
7. Assists partner transition to a customer-focused and solution based business model by removing the burden of inventory and credit management
8. Offers a choice to resellers who do not wish to take title of the product thereby improving cash flow
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How do resellers benefit from the HP Agent Program? |
Prompt and competitive commission payments for influencing sales.
1. 24/7 access to a wide array of HP solutions via the HP website
2. Professional customer service & support from the HP Call Centre
3. Significant savings in the cost of doing business - no inventory, billing, invoicing, accounts receivable or title
4. Improved cash flow
5. Reduced duplication of current Partner Model
6. Transactional overheads are worn by HP, not Agent
7. Commission has higher net profit for Agent than margin does
- Transaction costs eliminated
- Infrastructure costs reduced
8. Agent maintains control of the account
9. Agent can focus on strategic, higher margin core business
10. Choice of business models with HP on a transaction basis - option of Agent relationship or traditional buy-sell
11. Allows new partners to broaden product portfolio
12. Partners can reduce risk and exposure related to inventory holding, credit management and product obsolescence
13. Opportunity to drive significant return on capital - partners recognise a commission without investment in assets
14. Simplifies doing business with HP
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How does the Agent Program work? |
1. The Agent works with the customer to select the appropriate HP solution
2. The customer and/or the Agent contacts HP to purchase the solution referencing the Agent ID at time of order
3. HP fulfills the order and invoices the customer directly
4. HP sends a commission payment to the Agent based on the commission schedule for HP branded products and services (the commission schedule is on POL, viewable once they are signed up as an Agent)
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When will the HP Agent Program be implemented? |
The Agent Program is available now in Australia. |
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What is the criteria to be authorised as a HP Agent? |
Potential Agents must be a business entity and have an offering which both compliments and adds value to the HP solution being sold. |
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How does a business sign up for the program? |
They simply register here. They will be notified of their success and forwarded the relevant agreements to sign and return. |
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How does an end-user identify the Agent when placing an order directly with HP? |
The customer identifies the Agent by the Agent ID number. The information will be verified against our database either via the website or the telesales representative at the point of order entry. |
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Do Agents get a single Agent ID number for all customer transactions or a different ID number for each customer? |
Agents have a single Agent ID number for all transactions and all customers. For existing HP Authorised Resellers, the Agent ID number may be the same as their current authorisation ID number. |
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Is there a place to add the Agent ID number for orders placed online? |
Yes. Our website provides a place to add the Agent ID number without entering a valid Agent ID. |
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What happens if the end-user forgets to include the Agent ID number? |
The customer is not able to place an order on the Agent Direct Online Store without entering a valid Agent ID. Only valid Agent IDs will allow them to progress to the buy site. |
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How will the Agent be notified of what is actually purchased from HP? |
Monthly reports that list the Agent ID and customer orders will be sent to each Agent and/or posted on the Agent Direct section on POL. The statement lists:
1. Order number
2. Customer name
3. Agent ID
4. Product
5. Quantity
6. Revenue of sale
7. Commission rate
8. Commission amount
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Does securing one order from a customer guarantee that an Agent will earn a commission on all subsequent purchases by the same customer? |
No. Because customers who purchase products from HP and name an Agent on one occasion may independently choose to buy from a HP Authorised Reseller or to engage other Agents at any time, the Agent is not entitled to commission on future purchases. |
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Will HP offer special pricing through the Agent Program? |
HP may authorise special pricing under this program. Agents will receive reduced Agent commission on direct sales where HP has authorised special pricing. In order to begin the competitive bid discount process, the opportunity must be over $50,000 and registered on the Agent Direct section on POL. |
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What is the product scope of the Agent Program? |
Product is limited at this stage to what is available on the Online Store. For products outside this scope, the Agent can submit their request on the Agent Direct section on POL. |
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What is the role of a distributor in the Agent Program? |
Distributors account for a significant share of HP's global business. The increasing trend for resellers to outsource logistics to distributors is accelerating this growth. Where HP does not have end-to-end fulfilment capability, we will appoint a distributor to act as a sub-contracted fulfilment partner for Agent business on our behalf. In this case, we will provide the distributor with a fixed fee for each shipment to an end-customer.
HP is also investigating the possibility of setting up Stocking Agents moving forward. |
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Is the Agent Program expected to impact distributor profitability? |
No. Please note that this program is not aimed at playing in the same market segment as distributors; they are and will remain a critical part of HP's go-to-market strategy. HP does not intend to hold stock as part of the Agent Program, and therefore the value proposition that the distributors offer is as valid as ever. The target market is customers of current competitors in the direct vendor space and is designed for simple transactions only. It is not designed to offer the same value proposition of the existing channel, and the majority of business through the Agent Program will be incremental. |
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What is the role of the Agent? |
Typically, an Agent will identify and assist with closing of sales opportunities, assist a customer with configuration and quotation guidance, provide a customer with a value-added solution based on HP products and services and assist HP in delivering customer satisfaction. |
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What are the fees for acting as a HP Agent? |
HP has developed a competitive fee structure for the Agent Program to both recognise the value that an Agent brings to us and to offer partners a choice between a traditional buy/sell or the Agent Direct Model. Current margin rates will be visible on POL once they are signed up as an Agent, and tend to be between 4% and 5% on deals that do not require volume discounts. |
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What happens to commission if products and services purchased through the Agent Program are returned by the customer? |
If a purchase through the Agent Program is returned or the transaction is found to be fraudulent, HP reserves the right to invoice the Agent for any commission paid relevant to that purchase. |
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How does Agent direct business conducted by a current partner who is goaled on channel business impact their targets? |
HP will reactively reduce the partner targets for any business conducted through the Agent Program to ensure that doing business in the Agent Program does not negatively impact on their ability to reach rebate thresholds. |
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Do rebates apply? |
Rebates are not applicable under the Agent Program. |
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When is an Agent paid? |
Agents commission is calculated at the end of each calendar month. Commission is only applicable when the customer has paid the invoice associated with the Agent Direct order and will be paid within standard payment terms. |
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What payment methods are accepted? |
HP credit accounts available to successful applicants.
Purchase order via fax (02) 9022 1722 or e-mail AUAgentDirectOrders@HP.com. For upfront payment (via hp.com.au/agentcustomer or 1300 302 767)
Credit card:
- Visa
- MasterCard
- Bankcard
- American Express
Personal cheque
Bank cheque
Money order
Direct deposit / bank transfer / EFT
Leasing via HP Financial Services
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Is leasing available? |
By choosing to lease through HP Financial Services, customers of Agents can obtain technology at an affordable low monthly price. Leasing gives them the flexibility to return and upgrade old or redundant equipment seamlessly. Further information on leasing, plus the applicable terms and conditions can be viewed online at hp.com/hpfinancialservices/au/ |
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What products are available and at what kind of prices? |
There are two tiers to the program split in the interest of simplicity from a customer perspective into:
1. Projects above $50,000
Credit accounts may be set up if necessary
Volume discount pricing may be applicable
Wide product offering
Potential for Imaging and Printing Group(IPG) via exception process. IPG must be involved in decision.
Opportunities above $50,000 must be registered on the Agent Direct section on POL, and the decision to conduct business through the Agent Program will be made in consultation with the customers account manager and consideration of existing partner incumbency.
2. Projects below $50,000
Payment upfront
One price for all
Limited product set
No IPG at this stage
A range of commercial and consumer Personal Systems Group(PSG) products are available through this part of the program, along with industry standard servers and associated Care Packs. These products are typically at street price, but at times HP may put together special offers at greater discounted rates. The Agents primary contact will be advised of these offers by e-mail so they can be forwarded to customers. These specials may include discontinued or end-of-life products and often represent substantial savings to customers.
An example of what's on offer is as follows:
HP Compaq desktops and notebooks & Presario desktops
HP Compaq desktops and notebooks & Presario notebooks
HP iPAQ Pocket PCs and accessories
Projectors
Industry standard servers
Associated Care Pack extended warranties
A full range of accessories - carry bags, monitors, cables,security locks, additional memory etc.
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