Avnet has strengthened its ties with business partner, HP, by signing a deal to offer its refurbished IT equipment to the channel.
Avnet, through an agent, will distribute the vendor's refurbished Unix, high-end Intel and storage products as part of HP's Renew program.
The move was another step towards offering more value-added services to its reseller network, Avnet Australia managing director, Colin McKenna, said.
"If a reseller needs to match some older technology, or if they have a situation where having the latest and greatest isn't necessary, or the deal is very price sensitive, then the Renew kit is very useful to have," he said.
As the program was also vendor sponsored, it was attractive to both Avnet and its resellers, McKenna said.
"Because it is a formal program, the products are fully supported, so come with the standard three year warranties," he said. "From a vendor/distributor relationship stance, it is good as it is not seen as a competitive business to HP."
In spite of strong market requests for refurbished equipment, McKenna said reports that HP's Renew business was worth $10 to $20 million in Australia were exaggerated.
He also spoke out against claims the company was offering refurbished product at 50 to 60 per cent off list prices.
"To compare prices against list is not a valid comparison, so we usually compare it against the street price," Mckenna said. "You would usually see HP Renew stuff at around about 15 per cent cheaper for the equivalent box, but it can vary 10 per cent either way."
Avnet's Renew business currently made up about five per cent of its overall HP sales this year, McKenna said, and would be worth up to $300,000 a year.
"Frankly, HP Renew is not major thrust for us, it's just that where a customer has a particular need or requests for HP Renew, then we will provide it as a value-add to our overall HP business," he said. "We think it is a genuine value-add and a good part of the business, but not something we see threatening or cannibalising our new business."
There were no plans for expanding Avnet's refurbished offering to other vendors or third parties, McKenna said.