Tell me about how HP deal registrations work
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OK, call it normal pricing and good pricing. Deal registration gets you good pricing.
Let's say a server is $10k, but HP will offer it for $8k. Why wouldn't you want to get it at $8k? -
@Carnival-Boy said:
OK, call it normal pricing and good pricing. Deal registration gets you good pricing.
Let's say a server is $10k, but HP will offer it for $8k. Why wouldn't you want to get it at $8k?I do, that's why I want to be the one partner able to get it. So I register. But the point is... registration is only open to one partner, once they register no one else can. Everyone else can only get the higher price.
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A key reason that it is important that deal registration include deal protection is that otherwise there is a heavy incentive for the vendors to take customer details from the registration process and send that to a preferred partner and get them to contact them as well. Vendor have been caught doing that and big vendors are very fearful of people thinking that that is happening.
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I'm just telling you what I've been told. If you choose not to believe it, then fine.
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@Carnival-Boy said:
I'm just telling you what I've been told. If you choose not to believe it, then fine.
You've also been told that that is inaccurate by an HP Partner that you chose not to believe. You have two HP Partners with conflicting info. But one has the logic as to why it is the case, the other sounds like they are trying to tell you what you want to hear.
I'm not saying that we can't be mistaken, we've been an HP Partner for well over a decade but we don't act as a reseller so we aren't doing deal registrations. But we have definitely been told that what you were told is totally incorrect. Deal registration involves unique pricing and deal protection.
Also, pricing does not come from HP. HP gives rough pricing, but the real, final pricing comes from the distributor so the partner network including the distributor in question is part of the equation as well. I'm not sure all distributors can get the same prices.
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It's possible that HP's programs have changed recently or that in the UK they work nonsensically. But that kind of system would drive people right over to Dell so I find it very unlikely. As a reseller deal registration needs to involve deal protection or you are going to go with a different vendor as your partner. VAR situations just can't work where you have registration without protection.
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This is in no way definitive, but what your HP Partner is telling you violates the definition of deal registration:
http://searchitchannel.techtarget.com/definition/deal-registration
Deal registration is a feature of some vendors' channel programs in which a channel partner, often a VAR (value-added reseller) or SI (systems integrator), informs the vendor about a lead and is given priority for it. Once a lead is registered with a vendor, the partner usually has a set period of time to close the deal. During this time other channel members, or even the vendor's own sales team, are not allowed to negotiate a similar deal with that lead. Not all vendors offer deal registration, and some vendors offer it only to certain channel partners.
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That information is from one of the main HP distributors, so I would take it as pretty decently authoritative in this situation since this is one of the key parties of the HP deal registration program.
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@scottalanmiller said:
or, the partner usually has a set period of time to close the deal. During this time other channel members, or even the vendor's
The main problem I see with deal registration is the attempt to lock someone into a vendor through hardware, a commodity part. The part the vendor/VAR/SI should be getting all their real cash from should be their services, not the sale of the hardware.
I say this because unlike Scott, I've rarely found real value in what the VAR provides. I give them my laundry list of things I've done my own research on, and Scott says that they should now come back and confirm that all of my parts work together, but I've been burnt on this more times than I care to admit. Do I blame the VAR? Nope, I gave them the list, and sold me that list. According to Scott, I should be shopping around for another VAR, because someone out there is willing to provide the verified will work together work as a double check to my own work as part of my purchasing through them.
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@Dashrender said:
The main problem I see with deal registration is the attempt to lock someone into a vendor through hardware, a commodity part. The part the vendor/VAR/SI should be getting all their real cash from should be their services, not the sale of the hardware.
The problem there is that you disagree with the concept of resellers, not the ecosystem itself. It's the right tool for how reselling works. If you don't like this concept, you simply don't work with resellers and go directly to the vendor in question.
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@Dashrender said:
I say this because unlike Scott, I've rarely found real value in what the VAR provides. I give them my laundry list of things I've done my own research on, and Scott says that they should now come back and confirm that all of my parts work together, but I've been burnt on this more times than I care to admit. Do I blame the VAR? Nope, I gave them the list, and sold me that list. According to Scott, I should be shopping around for another VAR, because someone out there is willing to provide the verified will work together work as a double check to my own work as part of my purchasing through them.
Correct, if your reseller is not a good partner, they should not continue to be your reseller (within reason.) They really have only one job to do, and that's what you say that they are not doing. So if they are not doing the one thing that you are giving them business for, why continue to give them business?
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@Dashrender said:
@scottalanmiller said:
or, the partner usually has a set period of time to close the deal. During this time other channel members, or even the vendor's
The main problem I see with deal registration is the attempt to lock someone into a vendor through hardware, a commodity part. The part the vendor/VAR/SI should be getting all their real cash from should be their services, not the sale of the hardware.
Part of the problem here is that making the hardware sale often is what determines who gets the support business. Getting the lowest price is necessary to win the project to get the support work. So whether you like the reseller concept or not, most companies give their support dollars to the company that wins the hardware sale. So this deal registration is part of that, too.
If you don't like this system, you need to change the thinking of IT buyers across the globe.
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@Dashrender said:
@scottalanmiller said:
or, the partner usually has a set period of time to close the deal. During this time other channel members, or even the vendor's
The main problem I see with deal registration is the attempt to lock someone into a vendor through hardware, a commodity part. The part the vendor/VAR/SI should be getting all their real cash from should be their services, not the sale of the hardware.
I say this because unlike Scott, I've rarely found real value in what the VAR provides.
Same here. Sounds like you should move to the UK where you're not locked in and can shop around.
Although I'm coming up with my own shopping list, I expect the reseller to check that it is workable. If it turns out not to be, I would expect them to make good. I believe they have a responsibility to ensure the parts work together.
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@Carnival-Boy said:
If it turns out not to be, I would expect them to make good. I believe they have a responsibility to ensure the parts work together.
They do have that responsibility.
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@Carnival-Boy said:
Same here. Sounds like you should move to the UK where you're not locked in and can shop around.
Doesn't that cause VARs to be far less likely to do a good job? Once you shop around, you are going for low price, not service. If you value service, you go with who has been giving you good service. Once you start shopping around, the VAR drops the VA and becomes a reseller and all responsibility is gone.
You can't shop around and expect the value add, the two are exclusive.
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The entire concept of shopping around (other than a first time purchase from which there is no basis for continuity or the time when you need to switch vendors) is to leave the idea of service behind. Shopping around fundamentally means that you aren't valuing service. Actions speak far louder than words. If HP doesn't act the same in the UK as they do in the US, then the HP ecosystem fundamentally is one based on price rather than on service value.
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Not really. Both are important. They're not mutually exclusive. I have two or three preferred VARs, carefully selected because of their winning combination of price and service. I'm monogamous when it comes to women, but not VARs. If anything, I believe I get better service when the VARs know that my business isn't guaranteed.
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@Carnival-Boy said:
Not really. Both are important. They're not mutually exclusive. I have two or three preferred VARs, carefully selected because of their winning combination of price and service. I'm monogamous when it comes to women, but not VARs. If anything, I believe I get better service when the VARs know that my business isn't guaranteed.
Having worked on the other side of the fence, I guarantee you do not get the best service compared to their loyal, trusted customers. We get so much better deals and service when our partners know that we are partners, not customers. It's a totally different world how things work when you are a team. Our VARs know that their business is not guaranteed too, but they also know that we aren't playing VARs against each other to get to the lowest price, we put value on the service and they know that they get to keep providing that service by doing a good job consistently.
If you split between several, you also eliminate your volume advantage with all.
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I've worked on both sides of the fence, and still do.
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@Carnival-Boy said:
I've worked on both sides of the fence, and still do.
So you understand that not having to compete for customers but having an open, trusting relationship and larger volume provides for more opportunity to do good work. It just enables more. It provides better trust, partnership, information sharing, cost advantages, efficiency, etc. There's just no way to keep margins as lean as possible without that monogamous, trusting relationship.
For example, the quote process alone means that if you have three vendors that you go to, each has to quote three times. If that is twenty minutes of work to generate a quote (which is reasonable for a simple order) then you turn twenty minutes of labour into an hour. So if $20 of cost of each purchase goes into the quoting process then for someone shopping around it has to be $60. That's three times the unavoidable overhead.
