Comments on: Can integrators be trusted? http://storagemojo.com/2007/08/30/can-integrators-be-trusted/ Data storage info & analysis Mon, 13 Oct 2008 13:36:27 +0000 http://wordpress.org/?v=2.6.2 By: dougo http://storagemojo.com/2007/08/30/can-integrators-be-trusted/#comment-113367 dougo Wed, 05 Sep 2007 14:53:28 +0000 http://storagemojo.com/2007/08/30/can-integrators-be-trusted/#comment-113367 There are many more things aside from discounts, rebates, etc. that may affect a VAR's decision on which product to pitch a client. What a supplier, VAR, vendor or grocery store pay for something that they then sell to me is none of my business. As long as I'm comfy with whatever it is that they provide for me that's all there is to it. As with IT and other areas that are hardware (stuff) and service intensive I can find cheaper stuff but maybe not the service I need, be it the quality of service, the timelyness of the service or the amount of service e.g. 7x24x365. Maybe I can get loads of service but the # of bodies on site doesn't equal actually getting my problem fixed. I can also spend tons of time revisiting each and every vendor's contract looking for ways to economize, maybe even switching from a long time vendor to a new vendor. This may not be cost efficient in the long run. At the end of the day every vendor, VAR, grocery store owner and car mechanic have to make a profit. We all have to eat. There are many more things aside from discounts, rebates, etc. that may affect a VAR’s decision on which product to pitch a client.

What a supplier, VAR, vendor or grocery store pay for something that they then sell to me is none of my business. As long as I’m comfy with whatever it is that they provide for me that’s all there is to it.

As with IT and other areas that are hardware (stuff) and service intensive I can find cheaper stuff but maybe not the service I need, be it the quality of service, the timelyness of the service or the amount of service e.g. 7×24x365.

Maybe I can get loads of service but the # of bodies on site doesn’t equal actually getting my problem fixed.

I can also spend tons of time revisiting each and every vendor’s contract looking for ways to economize, maybe even switching from a long time vendor to a new vendor. This may not be cost efficient in the long run.

At the end of the day every vendor, VAR, grocery store owner and car mechanic have to make a profit. We all have to eat.

]]> By: hirni http://storagemojo.com/2007/08/30/can-integrators-be-trusted/#comment-111398 hirni Thu, 30 Aug 2007 18:47:49 +0000 http://storagemojo.com/2007/08/30/can-integrators-be-trusted/#comment-111398 even more funny: According to a reseller "somewhere in Europe" - a leading hw-manufacturer from Armonk,NY will give the reseller an additional 20% off - called "branded discount" - if the partner has registered the project --- AND --- the offer (to the end customer) is 100% from this vendor. So for a reseller - a 20% lower price is a good ticket to win the deal. But it's normal, that other vendors have similar programs, where registering the deal on a partner-site gives 10-20% more discount to the first one. >> should the rebate get passed to the customer ? It depends ... typical hw-reseller margins are often below 5%. so you anyways can't make a profit just by selling tin. So for a reseller/partner to be profitable - the service must do it... And that's then the typical result: You bought a mega-cheap commodity HW, but whatever kind of service you need - prepare to pay ... There is no such thing as a free lunch :-) A simplier picture is this: HW can be manufactured in China - and MUST be cheap, because whatever quality the customer compares --- he compares it to the lowest price. But some services cannot come from China - you need local personel. (for example you cannot remotely swap powersupplies) And here is then the chance to catch up on margin ... hirni even more funny:
According to a reseller “somewhere in Europe” - a leading hw-manufacturer from Armonk,NY will give the reseller an additional 20% off - called “branded discount” - if the partner has registered the project — AND — the offer (to the end customer) is 100% from this vendor.
So for a reseller - a 20% lower price is a good ticket to win the deal.

But it’s normal, that other vendors have similar programs, where registering the deal on a partner-site gives 10-20% more discount to the first one.

>> should the rebate get passed to the customer ?

It depends … typical hw-reseller margins are often below 5%.
so you anyways can’t make a profit just by selling tin.
So for a reseller/partner to be profitable - the service must do it…

And that’s then the typical result:
You bought a mega-cheap commodity HW, but whatever kind of service you need - prepare to pay …
There is no such thing as a free lunch :-)

A simplier picture is this:
HW can be manufactured in China - and MUST be cheap, because whatever
quality the customer compares — he compares it to the lowest price.

But some services cannot come from China - you need local personel.
(for example you cannot remotely swap powersupplies)
And here is then the chance to catch up on margin …

hirni

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