Hewlett Packard
Reseller Says Direct Online Pricing Undercuts Authorized Resellers

I own a small business established in 1986 and am a authorized HP Reseller. Hewlett Packard is the number one product that we promote at our company and I believe in their products. Unfortunately HP directly undersells their product direct from there web site to the consumer. A example is on the HP laserjet 1300 printer, my wholesale price on this printer is $373 usd. The large office supply companies sell this printer for $399.

Certainly not a worthy margin for us to sell this product. Let's take a closer look... HP will sell direct to the consumer for $399 with a factory rebate of $100, delivered price $299. This rebate incentive is not available to my customers, nor is our cost of goods low enough to compete or grow our business. I have researched the Sherman Anti-trust law and though I have no formal legal training it appears obvious that Hewlett Packard is in direct violation of the law. Furthermore I believe that local state and municipal sales taxes are not being charged in these HP direct purchases. In my opinion HP is criminally liable and have broke anti-trust laws. During the past 6 weeks my company has lost over $20k in sales of HP products to HP! This is ludicrous, we answer the customers questions and assess their needs, only to find them purchasing from HP directly at a price that small business associates can't even meet.

Now there is that other little dirty secret in our business... Give them the printer and fleece the consumer on consumables. Trust me those margins are in jeopardy, trying to compete with HP directly. I don't know but just guessing, a HP inkjet cartridge costs a couple of dollars to produce, though the average consumer price is an average of $30, most all americans have felt the bite in our pocket book when we need ink. I have filed complaint with the FTC.

I have seen in these past many years of business evidence of price collusion amongst the HP distributors (i.e. Azerty, United Stationers, Ingram, Tech Data, Synnex, Neamco, Arlington Industries). The DOJ has Micron, Hynix, Samsung and Infineon under investigation of collusion and price fixing of dram during 2002. Indictments have been served. HP's practices far exceed the injustices now being exposed in the dram industry. I want to file a class action lawsuit against Hewlett Packard and it's factory direct distributors.

Are there other HP Resellers that want to participate in a class action lawsuit? I know my company is not alone, all of us, including the consumer are getting the short end of the stick.

Together we can make a difference. This problem must be addressed we all are being ripped off!

Respectfully,

Myhphurts

Company: Hewlett Packard
Country: USA
Site: hp.com

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