Where to find an Allen Bradley online store?

For clarification, this isn't unique to Rockwell. Most automation products are sold through regional distributors.
This practice is common in many industries, not just automation. From the companies perspective it is done to protect brand value by avoiding competitive price wars. A distributor is given territory in which they are the sole provider of a product line, therefore they do not have to try to under sell a competitor by lowering the cost. Since consumer psychology directly connects price with quality, maintaining high prices also has the effect of maintaining an image of quality for the brand.

The first reaction when consumers see this is to think they are getting price gouged. In reality, this is partly true. But the other effect is that high profit margins are maintained which in turn are typically used to invest in better quality products.

It is just one of those psychological games that product suppliers use that most consumers do not realize unless they study in that field or have worked on both sides of the fence.
 
It's worth pointing out that it's way more stringent on the DCS side. GE will not sell their Mark VIe system to anyone else. They have to be the integrator.
 
The first reaction when consumers see this is to think they are getting price gouged. In reality, this is partly true. But the other effect is that high profit margins are maintained which in turn are typically used to invest in better quality products.

Hey Archie, I dont understand your statement... are you saying that the distributors are giving their profit back to Rockwell? we are not talking about Rockwell prices we are talking about the distributor markup/distribution if so I beg to differ... they have nothing to do with investing in the quality of the products they are only investing in the quality of their pockets (not all, but some)


JesperMP said:
Our distributor is acknowledged by Siemens and possibly also AB and the other big brands.

Until EECO bought out a AB supplier I never seen AB and Siemens sold by the same rep (authorised) I have not tried to buy any AB stuff from them so not sure how that would work but they are a great Siemens supplier
 
Hey Archie, I dont understand your statement... are you saying that the distributors are giving their profit back to Rockwell? we are not talking about Rockwell prices we are talking about the distributor markup/distribution if so I beg to differ... they have nothing to do with investing in the quality of the products they are only investing in the quality of their pockets
The protected profits go through the complete supply chain, not just the distributor. A manufacturer with higher profits will generally have more money to invest in R&D. A distributor with higher profits will be more likely to invest in local support services/engineers.

Not saying all profits go to things like that. The investors getting their pockets lined is for sure a priority. But a 100% margin leaves more for all than a 25% margin would.

Realistically the end purchaser may pay 100% more, but only gets 10% better quality. This is more of a side effect than a goal of the product manufacturers.
 
I can't say what they do in other countries, but in the US, Rockwell has 100% exclusivity with it's distributors; within their assigned geographic area, the distributor MUST sell and support the Rockwell brand in anything that Rockwell makes, they cannot sell anything similar that is made by someone else, and conversely Rockwell cannot set up another distributor in that assigned area. This has been a hard and fast rule from the very beginning of Allen Bradley being sold through distribution. It is not illegal in any way shape or form. Part of that is that the distributor cannot sell to anyone OUTSIDE of their assigned area either, with a few specific exceptions. Selling it for less than the assigned distributor in never one of those exceptions.


Many many of the Rockwell distributors sell over the web, Rockwell in fact encourages it and has programs to help them compete against others that do. But at the same time, they still cannot ship to anyone OUTSIDE of their assigned area. So if you go to, for example a Rexel website for one of their Rockwell authorized branches, you will have to set up a customer profile to be able to buy. When you do, and your ZIP code is outside of their assigned area, they tell you that you can't buy from them and redirect you (,most of the time) to the authorized Rockwell distributor for your area.


As I heard it put once to an end user (Tesla) who insisted on buying direct "to save money by eliminating the middle man", Rockwell's response was "Well, we would have to raise your prices to be able to afford to do that."
 
Online Entity...

Oh, I forgot to mention these...

geniusintraining said:
...I never seen AB and Siemens sold by the same rep (authorised)...

I have.

I've mentioned several times here before how we use LeKtroniX - A Rockwell Automation Business. Rockwell bought them out in 2011. They can supply new, source second hand, or repair just about anything you can throw at them, and from just about any major to minor brand you can think of. We don't (or rarely) use them for new, but often use them for second hand and repairs. I cannot speak highly enough of them.

They have access to huge repositories of stock from many major brands, including AB and Siemens. They are multinational and although their core business is repairs, of which they are a powerhouse, they appear to have negotiated favourable contracts with the big players to act as intermediaries with fully extended Manufacturer's Warranty.

They have a large online presence and their web sales would go to make up a fair percentage of their overall revenue. They may not have everything "in stock" but they can get items reasonably quickly if prepared to wait more than a couple of days.

I've previously posted a photo somewhere on the Forum of an invoice from them which shows the Rockwell Automation Business logo at the top of the page, yet the items purchased were from Siemens.

Worth a look online perhaps, HJTRBO, but I think their Singapore branch would be the closest they have to you?

Archie said:
...The protected profits go through the complete supply chain...

Yes, this is what I understood from your first post. Authorised Distributors will mark-up and discount products all within the OEM's guide price list, but still make healthy profits, as do the OEMs. But a proportionate amount of those profits would go back into both the Distributor providing a better service and the OEM investing in continuous product development.

Archie said:
...Realistically the end purchaser may pay 100% more, but only gets 10% better quality. This is more of a side effect than a goal of the product manufacturers.

The psychological games you mentioned? I see it as a quasi-placebo effect. The OEM's are protecting their investment in high quality products and services by charging accordingly and ensuring the Distributors do likewise. The customer is in the main happy to pay, or sees the justification in paying, apparently more expensive prices for these high quality products and services. The customer then feels that they have gotten good value for money, but in reality has no clue of the actual worth of bringing the product to market and maintaining there. The only real metric the customer has to gauge value for money is performance.

So, regardless of the price, once the products live up to the task, and prove reliable for many years, customers often see those products as not only worth the money, but priceless, especially when they've contributed in turning over profits exponentially greater than their initial cost.

It's easier for us end-users to appreciate this perceived or otherwise good value for money, but I feel it is the Integrators who are pinched. They have to sell that same concept of a high end, high value product to their customers, all the while often having to undercut their own profit margins just to win or keep that customer.

Regards,
George
 
I hate it how big business looks after big business.

I fill a niche roll for my clients. I keep their plant electrically maintained and running, and provide a wide range of Automation & CAD solutions at an hourly rate not that much more than my standard electrical maintenance charge.

I usually work with other brands, it's only when I am pricing up the AB gear I hit the vertical integration pricing model wall that affects my business and my bottom line. Hence why I always recommend other brands.

Anyway, here is the best pricing I have so far...
2711P-B6C20D8 USD 1,999
2711P-B7C4D8 USD 3,605
I would appreciate it if anyone can do better and wants to sell me one 🍺
 

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