InflationOrPriceGouging?

gbradley

Lifetime Supporting Member
gbradley
Join Date
Apr 2002
Location
Corona, Ca.
Posts
1,637
[Rant] Last year my Tech Connect support went from $195.00 to $203.00... reasonable enough.
This year the quote went from $203.00 to $325.00.
I understand that they gotta eat, but 60% increase in one year.
What's going on?
[/Rant]
 
There was a price increase, but only 5%. Are you getting an End-User or an OEM/SI TechConnect? If an OEM/SI, the major change they implemented this year was they are no longer offering Indutrial Motion Control coverage free of charge. If you are an OEM/SI, look for the Industrial Motion Control line item; that may explain the increase. I have made it standard practice to ask all my OEM/SI customers if they even need motion support; a lot of them never thought about it in the past becuase it was free, so they left it on there. Another possibility is: have you purchased any addtional software in the past year? While all Automation & Control products (RSLogix5/500/500, PanelBuilder, RSView Studio ME, RSNetworx) are all covered for one price, HMI & Comms and Application or Specialty packages are priced per serial number. Your quote should list all of the software covered on the quote; compare it to last year's for differences. If none of the things I mentioned are true, demand your distributor get an explanation.
 
gbradley said:
[Rant] Last year my Tech Connect support went from $195.00 to $203.00... reasonable enough.
This year the quote went from $203.00 to $325.00.
I understand that they gotta eat, but 60% increase in one year.
What's going on?
[/Rant]
Click to expand...

The CAD$ has gained 30% on the US$ in the past 2-3 years. You think Rockwell prices here in Canada have dropped 30%. Hah.

Companies such as Harley-Davidson have passed on the savings. I bought a $21K Dyna 2 years ago. Today the same $21K can buy a Softail ( next model up ). HD Canada has passed on the savings
 
It's the exact same Catalog number
Support Start Date: 1-Nov-2004
Support Expiration Date: 31-Oct-2005
9800ECAUTOA EConnect - Automation Control Site Support (1-4 Processors) $195.00

Support Start Date: 2-November-2007
Support Expiration Date: 31-October-2008
1.9800ECAUTOA EConnect - Automation Control Site Support (1-4 Processors) $325.00
I don't have last years Quote, but the invoice was $203.00, and we are still in support.
I think that the support is great,
I just want to know what the justification is for the increase?
 
Last edited:
Well, if I sent one like that to one of my customers, I would fully expect them demanding an explanation ot an increase of that magnitude. And since it is an eConnect, did your distributor tell you that as of Oct. 1 of this year, you will no longer get the 3 phone calls per year with eConnect? You really need to press them for an explanation.
 
gbradley said:
It's the exact same Catalog number
Support Start Date: 1-Nov-2004
Support Expiration Date: 31-Oct-2005
9800ECAUTOA EConnect - Automation Control Site Support (1-4 Processors) $195.00

Support Start Date: 2-November-2007
Support Expiration Date: 31-October-2008
1.9800ECAUTOA EConnect - Automation Control Site Support (1-4 Processors) $325.00
I don't have last years Quote, but the invoice was $203.00, and we are still in support.
I think that the support is great,
I just want to know what the justification is for the increase?
Click to expand...


Guess it is basic economics of supply and demand. Once you are in high demand (lotsa contracts) you can command any price you wish.
 
I think mgvol has gone as far as he can in this situation, need to ask the distributor why it has changed. I have not had or used the support in over 4 years and paid over 300 back then; therefore your former pricing may have reflected a multiplier which now is not being used.

Talk with the distributor, about the only way to find out, and get it resolved.
 
Hmm, I am looking at my DIRECTCONNECT quote for next year and there was a small increase from last year. I was on sick leave then so I don't know exactly how much more. Our purchasing dept takes care of that. We are an end user and for 7x24x365, software, 50 processors, and drives, well let's put it in round numbers of almost US$27,000 for 3 years billed annually. The 3 years saves us 20%.

It is more for our guys on the floor and off-shift. If they call for support at 10PM and it gets the process going in an hour or so it can pay for the year support cost. I only use the software upgrades and Knowledgebase DVD's and haven't had to call them so far.
 
It used to be cheaper for us to make an extra flight through Canadian airports to save money on International airfare. Pretty soon you'll be doing that to us. :(

curlyandshemp said:
The CAD$ has gained 30% on the US$ in the past 2-3 years. You think Rockwell prices here in Canada have dropped 30%. Hah.

Companies such as Harley-Davidson have passed on the savings. I bought a $21K Dyna 2 years ago. Today the same $21K can buy a Softail ( next model up ). HD Canada has passed on the savings
Click to expand...
 
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