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