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PCDA bans Compaq/Pavilion PCs

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CIOL Bureau
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PANIPAT, INDIA: HP’s stance to overlook the efforts of its existing dedicated partners and support new ones in Panipat has upset channel partners in the region. Following the company’s move, Panipat Computer Dealers Association (PCDA) has placed a ban on the company. The association has stopped billing for the complete range of HP Compaq and Pavilion range of desktop and notebooks since April 25, 2009.

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Sharing details on the ban, Ajay Singla, President, PCDA mentioned, “For the past many months we have been noticing HP adopt a stance whereby the company is neglecting old partners and is entering into partnerships with newer ones. Keeping the same in mind, the association held a general body meeting on April 25 and placed a ban on the purchase of a range of HP desktop/notebooks with effect from 25th itself. We have circulated a mailer notifying all the dealers that anyone found guilty of purchasing any HP Pavilion and Compaq range of notebook/desktop will be penalized as per the rules of the association.”

The DQ Week is in possession of the mail that has been circulated by the association among its members. As per the mail all members of PCDA will not make any fresh purchase of any type of HP range of desktops/notebooks. This order is applicable for all types of HP Pavilion, Compaq and HP Compaq range of notebooks and desktops. If any member is found guilty of purchasing any of these products, they will be penalize as per rules and regulations of PCDA. All members were also warned of discussing the matter with HP representatives other than the one authorized by the general body. This order has been executed till further communication by PCDA.

Throwing light on the same, Vinay Jagga, CEO, Computer Empire, stated, “We have been working with HP for close to six-seven years now and have reached a position where we will not be able to concentrate on any other brand. However, for the past several months we have noticed that HP has adopted a practice whereby the company is neglecting dedicated dealers and the newer players are getting preference over us. I have been selling HP’s Compaq range of notebooks and desktops in Panipat and my business is completely dependent on retail sales. I had requested the company on a number of occasions to support me financially in opening an exclusive showroom so that I can push sales further but the HP representatives went ahead and carried out the branding exercise with yet another dealer (Apex Computers) in the region. Later when we raised our concerns through the association, HP representatives denied having extended any financial support to Apex. On the contrary, Apex being a member of our association, had a completely different tale to disclose and admitted that they had resurrected a new showroom with HP’s support and had got the billing done for the same from HP’s Chandigarh branch.”

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Jagga further reinstated that it is not because the company is appointing new dealers and the dealers are upset about it but what has been irking these dealers the most is the lackluster attitude of HP wherein the company is indulging in unethical practices and not maintaining clarity in its policies towards partners.

“This is impacting the confidence of the dealers and gradually many of us are looking at other options to expand our business,” added an irate Jagga.

Panipat-based New Era Computers that has recently renamed itself as Technoworld was the first to initiate HP Compaq business in the region, following which Digitech Computers and Computer Empire also began dealing with HP Compaq range of notebooks and desktops. Later Ashish Computers that was earlier concentrating only on the Pavilion range also joined the fray and began dealing in with the Compaq range as well. Apex Computers, however was the latest dealer to be appointed by HP in Panipat.

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Among the new faces that the company has entered into partnerships include Softline Computers and Prompt Computers among others.

Rahul Kapoor, CEO of Digitech Computers stated, “HP has adopted a strange practice for quite some time, whereby the company is overlooking its dedicated partners. I have been doing business with the company for the past seven-eight years and the recent behavior has shaken my confidence in the company.”

Yet another dealer Ashish Computer mentioned, “We have been working closely with the company for the past seven years and helped establish the brand in Panipat. However, every time we approached the company and asked them to help us out in terms of branding our requests were not considered. Later we learned that another dealer (Apex Computers) got preference over us. We are now seriously evaluating our relationship with HP and given the treatment meted out to us, we are looking at partnering with other brands.”

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Singla further added, “Following the branding exercise carried out by HP with Apex Computers we tried to raise the concern with the HP representatives but they denied any involvement from their end. However, later when we contacted Vivek Mittal, Proprietor, Apex Computers, who is also a member of the association, he disclosed the fact that HP had offered them financial support in branding of their newly opened showroom. Mittal is also supportive of us and we wish to resolve the issue amicably. This is also in the interest of the dealer community in Panipat.”

When contacted, P Raghuraman, Director—Consumer PSG Sales, HP India said, “HP has the largest channel partner network across the country—over 3,500 channel partners comprising premium business partners, business partners and registered resellers who are handled most effectively through well-defined processes and policies. We deal with all our partners transparently without giving any special preference to anyone.”

“HP values its partners and treats them with equal importance for incentives, schemes, supply of stock and branding or marketing initiatives. Our local sales team is always in constant touch with the dealers and the association to address their problems in a mutually beneficial manner,” he concluded.

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