HP Tightens Control Over Branded Supplies Distribution

As reported by Actionable Intelligence, more details about HP’s change in its policies on distributing HP-branded printer supplies have recently emerged. These changes will tighten HP’s control over supplies distribution channels and potentially impact firms reselling HP supplies.

In its letter to customers, HP states that original HP inkjet cartridges, HP wide-format ink supplies, and LaserJet toner cartridges will be designated authorized products after November 1, 2013. To resell these products in the United States after that date, supplies resellers must have either a current U.S. partner agreement (PA) or U.S. consumer reseller agreement (CRA).

Under the current open system, a PA with HP is not needed to buy or sell HP supplies. After November 1, only HP authorized partners will be able to obtain supplies from HP and they will be allowed to sell to end users only. HP explains that this change will not affect those resellers and distributors that already have a PA with HP. Those distributors and resellers that do not have a PA or CRA with HP will have to acquire such an agreement.

HP’s official statement explained the reason for the move as follows:

“HP wants to deepen the relationship with resellers of our supplies products, and improve the customer shopping experience to help them make informed choices to purchase original HP Supplies.”

HP has asserted that it is not initiating a new distribution scheme that may prohibit HP’s authorized channel partners from selling third-party supplies. It says that the goal of the new distribution system is all about relationship building. HP’s move also allows the firm to tighten its control over the massive, multi-tiered distribution channel for supplies and control gray market sales of HP supplies.

Other OEMs like Epson and Lexmark have similar channel agreements restricting their respective dealers to selling only to end users. Resellers can learn more about becoming an authorized partner on HP’s Partner Portal website.