HP DesignJet PageWide Specialist XL TPS Program Partner Leadership 2017 Update Summit 2017 Product and Program Roadmap for HP PageWide XL TPS Partners Frank Marzigliano, US Large Format Channel Manager Irene Ortiz, US Program Channel Manager HP s top priority is to help you grow your business
Agenda FY17 Program Overview Intro HP DesignJet T3500 Product Update FY17 DesignJet Specialist Program New HW growth goals structure T3500 TDP Track Update Demo Program Q&A 2
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DesignJet Specialist Program 2017 Update 4
Frameworks in 1: Velocity and Value split by SKU 1.Velocity 2.Value 5
Frameworks in 1: Value and Velocity split by SKU MFP/ Value Single Function Value SKUS: T830 MFP, T2500 MFP, T7200, T3500 MFP, T3500 MFP + PS (bundle), Z6200, Z6600, Z6800 Velocity SKUS: Z5200ps, Z5400ps, Z5600ps, T790ps 24, T795 44, T730, T930, T1300ps 44, T1530 6
DesignJet Specialist Program 2. Value Add Framework Have financial benefits, like back-end sales rebates, volume rebates, install and training rebates, back-end preferred rebates, SPIFs, etc., which are designed to reward our partners for the value-add you provide to our mutual end-user customer. Installation & Volume & Sales Rebate HP Preferred Training Growth 7% 7% 3% 3% 7 *Discounts off NDP
2017 HP DJS Program Value Add Framework Volume & Growth Rebate DesignJet Specialists are eligible to receive a semi-annual volume & growth rebate based on their semi-annual performance. HP defines semi-annual periods as January thru June and July thru December. All HP DesignJet printer value and volume SKUs, including #BCB skus, count towards the volume tiers; payout will only be based on value SKUs in sale revenue figure. 8 Reward & Profitability Strengthen channel business Reward Growth YoY via tiers Up to 1% Tier 1 - $150K Tier Payout: 0% for achieving $150K threshold, but eligible for Volume Growth Incentive Volume Growth: > 1% Year over Year PL30 HW Growth = 1% Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Up to 2% Tier 2 - $300K Tier Payout: 1% for achieving $300K threshold Volume Growth: > 1% Year over Year PL30 HW Growth = 1% Up to 3% Tier 3 - $900K Tier Payout: 2% for achieving $900K threshold Volume Growth: > 1% Year over Year PL30 HW Growth = 1% Note: Growth and volume tiers are for DJS independent dealers only. Consortium and national accounts will have different targets. Half Backend rebate
2017 HP DJS Program Update: Technical Production Premium VAR Technical Production Premium VAR Service
All SKUS HP DJS TDP Premium VAR Track differentiated Benefits Track will be discontinued on December 31 st 2016. The DJS Technical Production Premium VAR track will no longer exist as it stands today. New Benefits starting January 1 st 2017! To qualify for new benefits DJS partners must meet the following requirements: Invest in 1 T3500 + PS Demo Unit bundle Have 1 tech fully certified by Skills4Tech on the T3500PS. NEW Benefits: Same upfront rebates on T3500 PS (Sales Rebate + HP Preferred) New - Eligible for T3500 year contractual commitment of 24 units. Upfront Discount Sales Rebate DIT HP Preferred Volume NA 7% 7% 3% $150K a H 1% GDS Premium VAR Up to 20% incremental discount $300K a H 2% $600K a H 3% Tech. Production Premium VAR 10% NA 7% NA Accrued MDF on TDP Products NA Accrued MDF for service training on TDP products (3-1 Partners ONLY) NA $150K a H 1% 3 to 5 TDP units a H 1% 3 to 5 TDP units a H 1% Up to 20% incremental discount $300K a H 2% 6 to 11 TDP units a H 2% 6 to 11 TDP units a H 2% Up to 6% incremental MDF on TDP $600K a H 3% 12+ TDP units a H 3% 12+ TDP units a H 3% 10 Tech Production Premium VAR and Premium VAR Service benefits are restricted to T3500/T7200 products only. All other products earn *Discounts off NDP regular DJS Program benefits; even if partner is authorized for TDP Track. Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
T3500 + PS Bundle Channel Pricing Summary SKU / Program List Price MAP Velocity or Value SKU Channel Big Deal Up Front Discount B9E24A#BH1 (90 Day Bundle) = HP DesignJet T3500 (B9E24A#B1K) + PS Upgrade (C0C66A) 1 Unit B9E24A#BH1 (90 Day Bundle) = HP DesignJet T3500 (B9E24A#B1K) + PS Upgrade (C0C66A) > 2 Units B9E24A#BH1 (90 Day Bundle) = HP DesignJet T3500 (B9E24A#B1K) + PS Upgrade (C0C66A) Annual Contract: > 24 Units B9E24B#BH1 (3 Year Bundle) = HP DesignJet T3500 (B9E24B#B1K) + PS Upgrade (C0C66A) 1 Unit 11 $12,895 $9,995 Value Sales Rebate: $564 DIT Rebate: $564 Loyalty Rebate: $242 Volume Rebate*: < $242 $12,895 $9,995 Value Sales Rebate: $564 DIT Rebate: $564 Loyalty Rebate: $242 Volume Rebate*: < $242 $12,895 $9,995 Value Sales Rebate: $564 DIT Rebate: $564 Loyalty Rebate: $242 Volume Rebate*: < $242 $17,195 $13,995 Value Sales Rebate: $781 DIT Rebate: $781 Loyalty Rebate: $335 Volume Rebate*: < $335 N/A Eligible: All Value Channel o o > 2 units transactional $400 off per unit Eligible: All Value Channel o o > 24 units on annual contract $1,100 off per unit Eligible: TDP Premium Var Track Partners ONLY N/A Eligible: All Value Channel *Volume Rebate see next slide Effective Date SPIF 1/1/17 $300 1/1/17 $300 1/1/17 $300 1/1/17 $300 NOTE: For T3500 + PS (Bundle) the growth rebate is only on the Printer not on the total bundle.
T3500 + PS Bundle Channel Cost Summary SKU B9E24A#BH1 B9E24A#BH1 B9E24A#BH1 B9E24B#BH1 DJS VAR Premium Product Name HP DesignJet T3500 Production emfp w/ Encrypted Hard Disk 90 DAY WTY w/ps HP DesignJet T3500 Production emfp w/ Encrypted Hard Disk 90 DAY WTY w/ps (+2 Unit VLD) HP DesignJet T3500 Production emfp w/ Encrypted Hard Disk 90 DAY WTY w/ps (Annual Contract >24 units) HP DesignJet T3500 Production emfp w/ Encrypted Hard Disk 3 YR WTY w/ps HP List Price NDP MAP Estimated Reseller Buy Price w 3% CSP Markup Reseller Margin @ List Reseller Margin @ MAP Time of purchase Instant/ Contract Rebate Quarterly Payout Monthly Payout Quarterly Payout YoY Growth Rebate Volume Tier Sales Rebate DIT HP Preferred > 1% YoY $150K $300K $900K Net Price after ALL Rebates DJS Dealer View DJS Best DJS Best GM$ GM% $ 12,895 $ 9,284 $ 9,995 $ 9,563 $ 3,332 $ 432 $ - $ 564 $ 564 $ 242 $ 81 $ - $ 81 $ 161 $ 7,951 20% $ 2,044 $ 12,895 $ 9,284 $ 9,995 $ 9,563 $ 3,332 $ 432 $ 400 $ 564 $ 564 $ 242 $ 81 $ - $ 81 $ 161 $ 7,551 24% $ 2,444 $ 12,895 $ 9,284 $ 9,995 $ 9,563 $ 3,332 $ 432 $ 1,100 $ 564 $ 564 $ 242 $ 81 $ - $ 81 $ 161 $ 6,851 31% $ 3,144 $ 18,595 $ 13,388 $ 14,995 $ 13,790 $ 4,805 $ 1,205 $ - $ 781 $ 781 $ 335 $ 112 $ - $ 112 $ 223 $ 11,558 23% $ 3,437 Summary: Currently the Net Price after ALL rebates is $9,932 Bundle price drop of $1,981 for 1 unit, $2,381 for 2 units, or $3,481 for 24 unit yearly contract 12
FY16 DJS Demo Program Payout :12% off NDP or 12% off disty invoice whichever is lower Purchase up to 2 units; first must be 36 in wide; 2 nd must be 42 wide or greater 2 unit limit per registered branch location or HQ location Minimum holding period is 6 months DJS VAR Premium DJS Technical Production VAR Premium Segment SKU Product Name *Unit eligible but no discount provided. FY16 Demo Unit Elegibility HP Demo @ 12% off NDP Copyright 2015 HP Development Company, L.P. The information contained herein is subject to change without notice. FY17 Demo Unit Elegibility HP Demo @ 12% off NDP Value SKUs F2S72A#B1K HP DesignJet Z6800 60" Yes Yes F2S71A#B1K HP DesignJet Z6600 60" No No CQ109A#B1K HP DesignJet Z6200 42" Yes Yes CR652A#B1K HP DesignJet T1300ps 44" Yes Yes L2Y25A#B1K HP DesignJet T2530 MFP No No L2Y26A#B1K HP DesignJet T2530 PS MFP Yes Yes F2L46A#B1K HP DesignJet T7200 Production Yes Yes F9A30A#B1K HP DesignJet T830 MFP No No B9E24A#B1K HP DesignJet T3500 Production emfp w/ Encrypted Hard Disk 90 DAY WTY Yes Yes B9E24B#B1K HP DesignJet T3500 Production emfp w/ Encrypted Hard Disk 3 YR WTY Yes Yes B9E24A#BH1 HP DesignJet T3500 Production emfp w/ Encrypted Hard Disk 90 DAY WTY Bundle = HP DesignJet T3500 (B9E24A#B1K) + PS Upgrade (C0C66A) Yes B9E24B#BH1 HP DesignJet T3500 Production emfp w/ Encrypted Hard Disk 3 YR WTY Bundle = HP DesignJet T3500 (B9E24B#B1K) + PS Upgrade (C0C66A) YES Velocity SKUs NEW FY17 DJS Demo Program To qualify for I&T rebate: Demo Unit in place with Partner First. If not, I&T cannot be claimed. (Feb 1 st start date); demo unit must be purchased within 1 year Payout: Invoice = NDP: 12% x NDP Invoice > NDP: 12% x NDP Invoice < NDP: (12% x NDP) less (NDP-Invoice) 2 unit per registered branch or HQ location Minimum holding period is 6 months FY16 FY17 CQ113A#B1K HP DesignJet Z5200 PS 44" No No E1L21A#B1K HP DesignJet Z5400 PS 44" Yes* drop for Jan 1 T0B51A#B1K HP DesignJet Z5600 PS 44" Yes* Yes CR648A#B1K HP DesignJet T790ps - 24" No No CR649C#B1K HP DesignJet T795-44" No No F9A29A#B1K HP DesignJet T730 No No L2Y21A#B1K HP DesignJet T930 No No L2Y22A#B1K HP DesignJet T930 PS Yes* Yes L2Y24A#B1K HP DesignJet T1530 PS Yes Yes L3S81B#B1K L3S82C#B1K HP DesignJet T1300 44" PS SD Pro MFP HP DesignJet Z5400 44" PS HD Pro MFP Q6721B#B1K HP DesignJet Z3200 PS 44" Yes Yes No No No No
So, in summary Significant improvements to drive partner success Simplicity Profitability Engagement Making it easier to do business with HP Improved value program T3500 Track Simplification Demo Unit Improvement Strengthen channel business Aggressive and Predictable Pricing VLDs T3500 + PS Contract Volume Discount Enhance relationships PBM sales deployment evolution (9 to 1) Adding Resources!!! now let s build on our partnership 14
THANK YOU FOR YOUR PARTNERSHIP 15