Customers not price conscious? Rubbish, says reseller!

Major Saudi Arabian reseller says www.itp.net's January 31 story "Price no longer important" a reflection of customers exercising double standards. Reseller says that price is foremost in the customer mind when it comes to the crunch.

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By  Colin Browne Published  February 4, 2001

In a response from a major Saudi Arabian reseller to the January 31 www.itp.net story entitled "Price no longer important," customers' double standards have come under attack.

The reseller, which we will not name, in order to protect his interests, says that customers are not telling the truth when they say price is not the most important factor when they evaluate a deal.

"The fact is that customers do put a heavier weight on the pricing. They are correct when they say that they are more concerned on the after sales & support, as this is the false impression they are giving
themselves. The truth of the matter is very different [to that which] they are saying," the reseller said in an email to eCRN, the electronic Computer Reseller News Middle East newsletter.

"I have numerous examples...it has taken years for [our company] to be charging the solution pricing, but still we are far from what I think should be the deserving charges. Customer management initially agrees with you that the after sales matter a lot and makes you study and work out a solution for them...then once they understand the solution they don't think any more in the same manner and will make sure to corner you in cutting down the pricing. The best way is to bring in another reseller and show them our proposal—where we had spent days in working out a solution. Of course that reseller immediately will undercut our price," he says.

The original story was generated following a series of responses to an online poll here on www.itp.net, in which 59% of respondants said that after sales service and support were most important to them when evaluating a deal. Only 10% said that price was the overriding factor.

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