In a bid to streamline its Russian dealer network, Hewlett-Packard Co has cut its base peripherals discount, raised the minimum sales threshhold and given two of its dealers the status of wholesalers. Personal computer products manager at Hewlett-Packard Mosocw, Justin Lifflander, says the move was a direct result of expanding sales volumes. We have only limited manpower and its only logical to work towards fewer direct partners, he says. The new wholesalers, Steepler and Arus, were appointed in December 1992 and are getting between 5% and 6% more discount than the Hewlett-Packard Co dealers (though they are shipping more). Lifflander says it is too early to say what proportion of total business will be channelled through them. Hewlett-Packard dealer manager Boris Sherbakov says that from March 1, all dealer contracts have been up for renewal. He estimates the new thresholds will probably reduce the number of dealers to about 35 from the present 60. Dealers say the annual sales threshold has been increased from $250,000 to $500,000. Hewlett-Packard would not confirm the figures.
