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 price they’d obtain for brand new merchandise.
The initiative was created to help HP Renew Options, a enterprise unit shaped in November 2023 to increase gross sales of HP Licensed Refurbished know-how. These are merchandise returned to HP by industrial prospects when leases expire or throughout know-how improve cycles, reconditioned with recent parts and supplied for resale.
Efficient instantly, any HP gross sales accomplice licensed to promote HP merchandise may also signify the secondhand editions. They had been beforehand solely bought by 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 yr ended Oct. 31, 2024.
“Leaving the channel out of this could have been myopic,” mentioned Claudia Contreras, vp of HP Renew Options.
Extra consumers need secondhand merchandise
HP’s program is much like one supplied by networking gear producer Cisco for its remanufactured gear. Cisco’s unique program has been accessible for practically three many years, 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 — necessary for erasing a possible stigma in opposition to reused computer systems and data know-how — satisfied the corporate to show HP Renew Options right into a standalone enterprise initiative with undisclosed income targets.
HP’s pledge is for 75 p.c of its product and packaging content material, by weight, to come back from recycled, renewable or reused supplies or parts by 2030.
“We need to ensure that we’re taking part not simply within the first life of those merchandise but in addition within the second life,” Contreras mentioned.
The portfolio of refurbished merchandise accessible for resale to industrial prospects varies relying on the area, she mentioned.
Sure private computer systems can be found in France, Spain, U.Okay. 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 share varies relying on the product.) Extra lately, refurbished printers might be included as a part of managed providers contracts within the U.S. and European Union.
“If you’re an organization that’s making daring and public claims about decreasing emissions, this presents a really measurable method to decrease the affect of your IT property,” Contreras mentioned.
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 industrial buyer requests for extra details about the vitality consumption and carbon footprint metrics related to HP’s merchandise.
HP’s capacity 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 information for 2023, the most recent yr for which an HP environmental data is on the market. 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 studies put the quantity round 10,000.
Compensating HP companions equally for brand new and authorized refurbished merchandise permits salespeople to give attention to buyer wants, mentioned Mary Beth Walker, vp and head of worldwide accomplice expertise and engagement at HP.
“We made a collective resolution that in markets the place HP Renew Options can be found, we’d equally incentivize all companions to equip prospects working to undertake larger circularity,” she mentioned.
Making a stage enjoying subject was useful, mentioned Prashant Singh, vp at HP accomplice Finish Level Options. “As a options integrator, we give attention to serving to shoppers get extra from their system investments — not simply on the level of buy however all through your complete lifecycle,” Singh mentioned. “The pliability and help to promote HP Licensed Refurbished gadgets has been important for preserving our shoppers productive even when budgets are tight.”
