Are professionals in South America, Europe, and Asia paying the same amount for computer equipment as your company? The answer may surprise you.
I managed a study some years ago of the pricing of computer gear by four vendors in twelve countries around the globe. We researched list prices, actual or “street” prices, discount levels, common negotiating techniques, buy vs. lease proportions, restrictions on imports, and other cultural factors.
When we finished and analyzed the findings, the bottom line was that actual or net prices were very similar around the globe. Countries with traditions of engaging in extensive negotiations prior to purchase had higher list prices and higher discounts. Conversely, countries where most purchases were made at set prices with little haggling had lower list prices and lower discounts.
This group of competitors was adjusting prices to suit the cultural norms and expectations of each country. Does your organization sell internationally and does it take attitudes towards negotiation and the perceived value of discounts into account? It should.