Those of us who have been here a while will have seen this kind of "lets bash AB because AD is cheaper" threads before, which kind of go nowhere and prove nothing. The simple fact is that AB has higher list prices than AD because most of the market (but surely not all) prefers the extra service and added value that a GOOD local distributor provides.
Here in NZ Rockwell Automation is in the process of transitioning much of it's day-to-day business to regional distributors. By comparison to the huge businesses that the US distributors are, ours are very small beer, at this stage 2-5 man outfits, each turning over less than a few million a year. But experience has finally convinced RA that even at this scale distributors add a worthwhile value.
The key is that most RA distributors turnover is around 40-50% AB business, the rest is other items such as cable, motors, hardware, etc that add considerable value to the total package, plus local people who can deal with you on a first-name long-term basis. ie they know when you phone within seconds, who you are, what you have purchased, what you are trying to do with it, and how urgently to prioritise their response. This kind of thing is very hard to replicate with just a website and a call center.
A good distributor knows how to help you over the awkward spots, solve those ugly commercial issue that arise from time to time, and generally keep you in the loop with timely information, updates and suggestions about how you might do the next project more effectively. This isn't just being nice, it's in their commercial interests to keep you happy because whatever your size or operation, YOU are local and their reputation locally is important to them.
Of course not all distributors live up to the standard at all times. I am perfectly aware of this, so no flood of "my lousy distributor" stories please. But the fact is that it is a business model that seems to work reasonably well most of the time for most of the people.
The other truly silly aspect of the original post is the idea that the SLC500 is somehow the only product Rockwell makes and that it is the only product by which is should be judged. Sheesh!! First launched in 1988, it is a derivative of the even more venerable PLC5, it boasted the first 32-bit Windows based Logic Editor (RSLogix500) on the automation market and many millions of modules have been sold. As a market follower I should very much hope and expect that AD could at least match it in price and performance, but the SLC500 is no longer Rockwell's price/ performance market leader; that baton has been passed to the new generation of Logix products.
Please note: If you have not used ControlLogix or CompactLogix on at least several decent sized projects, please think before posting fatuous and simplistic comments about "how AD must be better than AB because they are cheaper". This makes about as much sense as saying all Korean cars are better than all Japanese cars because they are cheaper!!