HP Ups Notebook Ante With New Channel Rebates

Beginning Aug. 13 and running through Oct. 31, HP said it will give solution providers a two percent upfront rebate in terms of additional product discounts on its Smart Buy notebook SKUs, said Ramona Thibeault, HP's vice president, PSG business and sales management, Solution Partners Organization.

"It sounds like a good program, but I wish they'd give the rebates in the form of a check instead of a discount," said John Marks, CEO of JDM Infrastructure, a solution provider in Chicago. "Everybody gives the discounts away and it dilutes margins. If you are going to lower the price, lower the price. If you are going to give a rebate, give me a check."

Additionally, Thibeault said HP would offer enduser rebates of $100 for each solution provider-delivered service or an HP Care Pack up to a total of $2000 bundled with the notebooks. Care Packs that qualify for the rebates include accidental damage protection, next business day service, and on-site service among others.

Solution provider services delivered by partners with the qualifying notebooks such as data transfer, data protection and monitoring also qualify for the end user rebates, HP said. Solution providers will also earn a $25 payment for each Care Pack of services bundle they sell during the promotional period.

"We want additional notebook growth and this is one way to do it," said Thibeault. "These rebates should provide pull through sales of partner-delivered services. This helps offset the price of the service to the customer." HP's notebook revenues were up 54 percent and unit sales grew 71 percent worldwide for its third fiscal quarter ended July 31 compared to the year-earlier quarter.