HP Inc. is encouraging its third-party gross sales companions to promote refurbished variations of its private computer systems and printers by compensating them on the similar charge they’d obtain for brand new merchandise.
The initiative was created to assist HP Renew Options, a enterprise unit shaped in November 2023 to develop gross sales of HP Licensed Refurbished know-how. These are merchandise returned to HP by business clients when leases expire or throughout know-how improve cycles, reconditioned with recent elements and supplied for resale.
Efficient instantly, any HP gross sales accomplice approved to promote HP merchandise may also characterize the secondhand editions. They have been beforehand solely bought by means of HP’s direct gross sales representatives.
HP’s third-party gross sales channel drives roughly 85 p.c of the corporate’s annual income, based on previous firm statements. The corporate reported $54 billion in gross sales for the fiscal 12 months ended Oct. 31, 2024.
“Leaving the channel out of this might have been myopic,” stated Claudia Contreras, vice chairman of HP Renew Options.
Extra consumers need secondhand merchandise
HP’s program is just like one supplied by networking gear producer Cisco for its remanufactured gear. Cisco’s authentic program has been accessible for practically three a long time, however Cisco launched a circularity promotion in January 2024 to make it extra profitable for companions to promote remanufactured gear. Cisco’s oblique gross sales channel accounts for near 90 p.c of its income.
Buyer curiosity in refurbished choices lined by HP ensures about high quality — vital for erasing a possible stigma in opposition to reused computer systems and knowledge know-how — satisfied the corporate to show HP Renew Options right into a standalone enterprise initiative with undisclosed income objectives.
HP’s pledge is for 75 p.c of its product and packaging content material, by weight, to return from recycled, renewable or reused supplies or elements by 2030.
“We need to guarantee that we’re taking part not simply within the first life of those merchandise but in addition within the second life,” Contreras stated.
The portfolio of refurbished merchandise accessible for resale to business clients varies relying on the area, she stated.
Sure private computer systems can be found in France, Spain, U.Ok. and U.S. One instance is a refurbished model of HP’s EliteBook laptop computer laptop that has a carbon footprint that’s 60 p.c decrease than the unique version, she estimated. (The proportion varies relying on the product.) Extra not too long ago, refurbished printers may be included as a part of managed companies contracts within the U.S. and European Union.
“If you’re an organization that’s making daring and public claims about decreasing emissions, this affords a really measurable approach to decrease the influence of your IT property,” Contreras stated.
Sustainability metrics as deal closers
The brand new program supporting refurbished merchandise is an extension of initiatives HP began providing in 2020 in response to business buyer requests for extra details about the vitality consumption and carbon footprint metrics related to HP’s merchandise.
HP’s skill to supply details about sustainability as a part of gross sales discussions translated into greater than $1 billion in gross sales in fiscal 2020 and 2021. The corporate didn’t disclose knowledge for 2023, the newest 12 months for which an HP environmental data is accessible. Its subsequent report is due in a number of weeks.
HP created the Amplify Influence certification in 2021 for gross sales companions that use sustainability metrics to shut offers. Greater than half of HP licensed companions have accomplished that coaching. HP declined to reveal what number of companions are a part of the general Amplify program, citing aggressive causes, however previous stories put the quantity round 10,000.
Compensating HP companions equally for brand new and licensed refurbished merchandise permits salespeople to concentrate on buyer wants, stated Mary Beth Walker, vice chairman and head of worldwide accomplice expertise and engagement at HP.
“We made a collective choice that in markets the place HP Renew Options can be found, we might equally incentivize all companions to equip clients working to undertake larger circularity,” she stated.
Making a degree enjoying discipline was useful, stated Prashant Singh, vice chairman at HP accomplice Finish Level Options. “As a options integrator, we concentrate on serving to purchasers get extra from their machine investments — not simply on the level of buy however all through the complete lifecycle,” Singh stated. “The flexibleness and assist to promote HP Licensed Refurbished units has been important for protecting our purchasers productive even when budgets are tight.”
