HP’s shrinking distribution channel for its Imaging and Printing Group (IPG) will lose another company at the end of the month. Dynamic Supplies will give up its authorised distributor mantle on September 30.
Dynamic Supplies told resellers of its decision last week in a letter from managing director Alex Piccinini.
In the letter, Piccinini wrote, “Our decision was one that was arrived at after every effort had been made by both parties over a number of months to find a way to move forward together. Regrettably, our assessment of the future market conditions necessitated our decision.”
Price pressure in the HP channel had meant the vendor was no longer a viable proposition for Dynamic Supplies, according to Piccinini.
“This has been planned for quite a long time,” he said.
Dynamic will continue to supply HP consumables, but at “much smaller volumes”, Piccinini said.
HP had accounted for 40 per cent of its business, he said.
The move away from HP by the privately-owned distributor will not result in any staff losses, Piccinini said.
Staff were being redeployed to other, more lucrative areas of business, he said.
“We’re still financially strong," Piccinini said. "If we weren’t financially strong we couldn’t make the break, we’d be dependent.”
Dynamic Supplies is now in the process of adding new vendors in the more lucrative areas of toner and ink.
The announcement comes just two weeks after HP’s IPG appointed whitebox distributor, Synnex, to replace the failed Daisytek Australia. Digiland, currently restructuring into a whitebox supplier, is also set to cease distribution for the vendor.
HP is set to announce the results of its IPG distribution review by next month.
At the time of going to press, HP was unavailable for comment.