Touchscreen Price Protectionism Rant

[DavR]

The last couple of AV jobs I've gone out to quote for, I've found that the first supplier to approach the manufacturer gets preferential pricing for the project, has anyone else run into this?

 

Then, because we need to get comparative quotes, I get moans back from the other suppliers that they can't get the same pricing, and then I have to contact the manufacturer, and ask them to extend the pricing to such and such.....

 

It all seems a bit unfair, on a marketplace that's supposed to run on open competition. But mostly, it's just a pain in the ****! Like most people, we have to get like-for-like quotes on any big project, and this just generates more and more paperwork.....

 

/rant

[Davit2005]

I've seen Support/Solution companies that have got better pricing than others from equipment manufacturers. Edited May 29, 2020 by Davit2005

[TechMonkey]

Happens in other sectors too. I have had a disgruntled supplier who went to get a price for some Wifi but was denied by the manufacturer as another supplier had already asked for pricing on our behalf. The issue was we hadn't officially asked for pricing.

[DavR]

That's a good point actually, I think we had the same thing when we were getting quotes for wireless years ago. I think it was Ruckus who wouldn't give pricing to more than one installer, which is a shame as I was quite keen on their kit at the time....

[aleach2]

The last couple of AV jobs I've gone out to quote for, I've found that the first supplier to approach the manufacturer gets preferential pricing for the project, has anyone else run into this?

 

Then, because we need to get comparative quotes, I get moans back from the other suppliers that they can't get the same pricing, and then I have to contact the manufacturer, and ask them to extend the pricing to such and such.....

 

It all seems a bit unfair, on a marketplace that's supposed to run on open competition. But mostly, it's just a pain in the ****! Like most people, we have to get like-for-like quotes on any big project, and this just generates more and more paperwork.....

 

/rant

 

It is called "Deal Registration" or a Deal Reg in the business. It basically guarantees the first reseller who secures the Deal Reg preferential pricing with the manufacturer. This is why you should always contact your preferred partner first before going to tender otherwise another reseller from your tender list could get the deal reg. Once a deal reg is in place, it is pretty much there for 6-12 months with some manufacturers. The price percentage difference can sometimes be between 15-25%.

 

Some resellers will take the hit and make less margin to get the business if they weren't able to secure a Deal Reg to try and will future custom. It basically is a way of the reseller to make more margin on the order or it gives them the option to pass the saving on to the customer (you) if they are being nice. Most resellers will split the saving so that the reseller gets a larger margin and the customer gets a lower price compared to the other resellers.

[Jamman960]

Had similar with ours, once one had quoted Ruckus the others suddenly Would only quote Meru or other brands

[titch]

It also protects smaller companies from boxshifters.

 

Small local company A does site survey and loads of work for you helping you get setup with advice and great service.

 

But you go with large company B because they have greater economies of scale and therefore cheaper prices.

 

Small company A then loses all the time they spent on helping you where as company B wins purely on size of business.

 

 

It is an annoying system but it does have its advantages .

[DavR]

It also protects smaller companies from boxshifters.

 

Small local company A does site survey and loads of work for you helping you get setup with advice and great service.

 

But you go with large company B because they have greater economies of scale and therefore cheaper prices.

 

Small company A then loses all the time they spent on helping you where as company B wins purely on size of business.

 

 

It is an annoying system but it does have its advantages .

 

 

I guess, I have heard that argument used. But, it all comes to nought when the boxshifter just badgers the customer to email the manufacturer and say "please open up the bid"....

 

It just makes a bit of a mockery of getting three quotes for things, as it just means the first person you ask for a quote will always win.

[XiJ]

I guess, I have heard that argument used. But, it all comes to nought when the boxshifter just badgers the customer to email the manufacturer and say "please open up the bid"....

 

It just makes a bit of a mockery of getting three quotes for things, as it just means the first person you ask for a quote will always win.

 

Only if you go for the cheapest quote. And the supplier fully discounts. Or the other suppliers aren’t able to sell at less margin.

[FN-GM]

Happens in other sectors too. I have had a disgruntled supplier who went to get a price for some Wifi but was denied by the manufacturer as another supplier had already asked for pricing on our behalf. The issue was we hadn't officially asked for pricing.

 

I had this but the first supplier who contacted the manufacturer never followed through and didn't give me a quote (despite me asking and asking). It was a pain to get this sorted and took way too long to get a quote.