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Compaq stays tight lipped over Ts&Cs

Resellers left in dark as Great Stan of PCs puts squeeze on top tier

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Compaq resellers face an uncertain start to the New Year as the PC giant continues to sit on its plans to reduce the number of resellers it will sell to directly. According to channel sources, Compaq plans to double the sales targets for these tier one resellers, making it impossible for all of them to hang on to their direct relationship. It has still not issued revised plans - including the long awaited amended terms and conditions (Ts&Cs) - for the top tier of its channel. One source said that resellers will now need to turn around £12 million per year in order to hang on to tier one status. Tier one resellers are able to take advantage of greater discounts and marketing rebates from Compaq, but will lose out if they are forced to buy from the distribution channel. He described the move as "a kick in the face" for those who play heavily on their direct relationship with Compaq. Jackie Raybould, Elcom operations director, said the hybrid distributor/reseller would not be kicked off the list, but said she was still waiting to see the revised Ts&Cs. She said the contracts were originally promised late last year, then by New Year, but had still not arrived. Raybould warned: "Many who have been de-listed probably don’t even know about it yet." Another industry source said: "Compaq is delaying sending out the Ts&Cs because it hasn’t been able to finalise them yet." Nick Offin, Compaq channel sales director, denied the vendor was cutting back on its number of resellers in this category. He said: "We will be sending out new contracts to our channel this week – but there will be no change to the system reseller status." ®

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