Arrow Guides VARs To Maximize HP's PartnerOne Rebates, Discounts

PartnerOne is complex and some solution providers may not be fully utilizing its benefits and could be losing some back-end rebates, said Michael Haley, vice president of Duluth, Ga.-based Arrow SBM, to about 50 top HP customers at its first annual Alliance Summit in Colorado Springs, Colo. The tool will help ensure that any rebate or discount a VAR qualifies for is included in a quote, he said.

"[PartnerOne] is a difficult program to understand, but it's also the richest program," Haley said. "A number of you are leaving money on the table. This [tool] shows you, by line item, your anticipated PartnerOne benefits. Think about what that means. We also tell you every promotion applied, in and out of PartnerOne. If you had a better understanding of what the deal was bringing to you, it could allow you to be more aggressive in pricing to customers."

SBM should be congratulated for developing the tool, said Robert Callaghan, director of sales operations at TotalTec Systems, an Edison, N.J.-based solution provider.

"We are actively involved already in PartnerOne, and it's my job to ensure that we get the benefits. I think it will be a great tool to customers that are new to the program and [for them] to be able to say, 'We can do this deal and make this amount of money,' " Callaghan said.

For example, if solution providers sell to a customer that has never bought HP products, they qualify for a bonus, Haley said. If the opportunity displaces Sun Microsystems or IBM, there are additional benefits. And if they are certified as a StorageElite partner, that's more money back, he said.

"HP genuinely wants to pay out every dollar the reseller is entitled to, and they will tell you that resellers are not taking advantage of all the benefits," Haley said. "There might be a competitive displacement. But you have to register that opportunity. Did you take that extra step? We have automated the entire process to ensure that you get what you qualify for."

Some solution providers have dedicated staff to make certain they receive all of the back-end benefits they are due, and the tool could help cut those costs, Haley said.

"Resellers have been looking for a clear view to their cost, the total benefits in a particular transaction," he said. "This [tool] has the capability of telling resellers that information at the quote level, before they place the order."

The tool also can be customized, enabling staff within a solution provider organization to have access to different information. For example, if a principal doesn't want sales employees to know the cost after discounts, they will be unable to see it, Haley said.