AB Pricing

I build automation equipment and sometimes have to use AB PLC's. I prefer Automation Direct because of the pricing. Don't get me wrong AB's PLCs are good equipment. It's just so difficult to get a straight anwswer from my dealer. My dealer tells me that I am getting OEM pricing on the parts because I build equipment. I don't think that I am. He says that I can put 10% on what I pay and be the same as what he charges the factories for replacment parts. On a recent quote a 1747L511 processor was quoted to me at $284.95. From quote to quote the price is never the same, like he used a dart board to get his prices... Can anyone tell me if I am getting screwed by this dealer? Is there any other way to buy AB PLC's than from the dealer that bought this area?

Thanks

I was just quoted the exact same price to the penny. From what I understand, AB sets the prices, not the distributor. It does depend on what class (volume) of OEM you are.

I was just comparing another quote where some prices are higer and some are lower and some are the same as the latest quote.

• 1747L511...... 274.53 284.95
• 1746IB32...... 259.38 259.38
• 1492XIM20248R. 169.00 161.65

This is what confused me as to the pricing.

If it is a volume thing why won't the dealer be upfront with me?

J,

In my opinion if you are buying AB at any price you are getting screwed. I have seen AB pricing all over the board, they like to charge as much as you will bear. If you are willing to pay list price plus 10% then that is what they will try to get out of you. If you want a better price then tell them what you are willing to pay, if they don't give it to you then buy someone else's product. You will more than likely find that you will get a better product at a better price. I only buy AB if I have no other choice, I am sick and tired of being over charged and nicked and dimmed to death over support, software, and revisions.

You will find that other manufactures do not charge you for every thing they do for you or provide you with. There are still companies out there who are glad to have your business and not charge you for the privilege of doing business with them.

Mike

I hate to be defending A-B, but I think you are being a little too harsh. It is true that (in my opinion) their products and services are over-priced and under supported. I don't think, however, that A-B corporate practices predatory pricing, certainly not more than most manufacturers.

I believe A-B sets list prices, and sets discount schedules for most classes of customers. It is up to your local distributor to make sure you are in the appropriate classification to allow the best discount you can qualify for. I have checked my local guy's prices against another distributor's, and it is usually the same to the penny.

Depending on your industry, A-B does set project pricing for certain known systems that are bidding. In my industry, for example, the project price for a specific plant being bid may be better, but is usually worse, than the pricing I get day to day from my representative. I just gave up getting project prices, and use my standard pricing.

In some cases your distributor can go to bat for you, and get you in a better discount schedule. You have to push him for that, he has to be willing to go to bat at A-B for you, and there has to be a legitimate reason to get you re-classified. (Your opinion that "the stuff is overpriced" isn't going to be enough!)

FYI:

Our AB dealer informed us that prices would be going up last month. You may have noticed a change in your prices because of this.

AK

I get a new master price list and discount schedule every November and May. Some stuff goes up, some goes down, and some changes discount schedule.

Mike wrote:

they like to charge as much as you will bear

Click to expand...

Isn't this what most businesses try to do?

A-D doesn't charge what AB does because they can't, no one would buy it! Don't think for a second that if they could charge AB prices that they wouldn't!

challenge

Go price an ABB Proconti CS31 07 KT 93 Its a 40 digital I/O brick

Every week I go buy groceries for my family of 7, some weeks I can find Mini Wheat cereal 2 for $5.00 (the big boxes), other weeks one box is over $4.00. Sometimes I can find milk at 2.49 other times its 2.79. Prices vary depending on who, what, when and where.

When I bought VersaPro software for GE Fanuc GE quoted a near $800 price which was approximately $150 over the original quote, the original quote was a few weeks prior to the ordering. I ended up buying from a local distributor that sold it at the original quoted price. This is one of the reasons I have problems with GE, not the product just their sales/service.

Seems you need to get a better understanding with your supplier.

My experience with GE has been completely different from Ron's, I can get a salesman or and engineer or both out to our facility pretty quickly and get the answers I need without much problem. I'm sure the fact that they have a huge warehouse and sales office a few miles down the road from me doesn't hurt either. As far as pricing goes, when I bought VersaPro over a year and a half ago it was 500 bucks. I just bought another copy for a different division and it was 500 bucks. I'm in the Chicago Area and Ron is somewhere in TN. I don't know what kind of affect that has on prices.

The point is everyones experiences with different vendors is going to vary, obviously Mikes with AB has not been very good.

All I can say to Mikes comments are that apparently the market supports AB's pricing because if it didn't noone would buy it. People are willing to pay those prices, end of story.

Ron, I don't know about you but I buy most of the GE stuff I need from the GE Supply Web page. It's quick and I get the stuff within a few days. My sales guy had them apply our discount to my account so I get the same price whether I buy through a salesman or through the website. The discount might account for the difference in that VersaPro price. I don't know how they figure their discounts.

That price included the adapter cable too, the software alone was in the $500 range, I cant remember the exact pricing for each. The original quote was $637 I think and when I called to order they hit me with the higher quote of $787 I believe it was. It seems like anytime I deal with GE direct they get me like that, I have a vendor that is good with GE but they dont have automation support here, its in AL.

Thing is I like alot about GE, used the Magelis stuff alot few years back, worked good and decent pricing. Overall GE stuff is good with decent pricing if you can talk to the right people.

The best service I have gotten here in the Nashville, TN area has been Siemens, AB is second NOW that the distributor issue has been taken care of.

I have for years before I came here and on this forum heard how high priced AB is. They are proud at theirselves when it comes to their software but overall their plc prices arent too far out there compared with equivalent type stuff. Like I said call around and ask about that ABB I mentioned.

I dont knock any of them anymore, I just try to learn to work with ALL of them the best I can. Its usually not my decision what brand will be used anyway.

My last comment

Ron echoes my sentiment when he reminded us that some people are obviously willing to pay for A-B, so they must feel they are getting something for their money. I use A-B because some of my customers want A-B, and it ultimately is their money.

Many years ago an OEM customer complained to me that he thought my systems were over priced, and he could buy a lot cheaper. I repeated something I heard years ago: "I never argue with those who want to sell for less - they should know what their stuff is worth." I lost that customer for a while, but they are back to me now. I'm not sure it applies to A-B, but I guess a lot of folks think it does!

tip

I used to be able to get the most current list prices from the AB website, back in the day. Can you still do that? I would use it to compare the new prices to the old prices, and was usually able to figure out or predict my new vendor price. Although AB discouraged it, I used different vendors. I was often able to get better prices because the vendors were slow to adapt to the AB price fluctuations.

I used to loathe allen bradley.

Since I have been working with other PLC manufactureres. I now love AB. (quite the opposite of some other people's statements). Probably due to AB getting better, and staying up with microsoft's changes faster. I guess if you through enough money at something, it will eventually get good. Look at Microsoft and Windows 2000. They sure came along way from dos.

Of course, I don't have to pay for any of the stuff. Probably has something to do with it, don't you think.

Tom stated:

"I believe A-B sets list prices, and sets discount schedules for most classes of customers"

Tom this is true they do set the pricing, but what this also does is prohibit competitive trade in my opinion. What they are doing is nothing short of price fixing in my opinion. Are you able to set your pricing to your customers with your competitors? (i.e. one AB distributor vs. another AB distributor)

I know of no other company who can get away with this, I have been told that if two AB distributors quote against each other they had better quote the same pricing or AB will come down on them. Is that fair? Is that what America was built on? I don't think so.

I know that AB will contend that they are trying to maintain profits for their distributor network, profits which the need to maintain a great support staff and on and on. None of which I have seen, only someone with their hand out looking for an order which they feel as though they are entitled to, just because they are AB.

I am sorry for venting, but that’s jus the way I feel. I believe that what they are doing is wrong and therefore I refuse to support them in any way.

Anir


well the pricing i think is directly depends on the volume u use in your particular industry of factory , so ab always gives u a special discount onti them , as far as i know they generally keep a high price to the distributors.