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Sophos' Supplier Preference

Andrew Que

I have been using Sophos XG210 and very satisfied with it. However, after 3 years my support contract expired and we decided to change supplier. However, after changing supplier I noticed that the price from the previous supplier was substantially lower than the new supplier. After further conversation and investigation, suppliers told me this is because I am previously tagged to the first supplier and they have better preferential pricing. If I change supplier, my price will be higher.

So I did an experiment and inquired for pricing representing a different company with different customer name. After 3 days I received the quote and yes it confirms everything. The price is substantially lower.

Just to give a ball park figure:

Brand new price of XG210 = 105
Renewal for Existing Company (switched supplier)  = Price is 100
Renewal for New Company Name = Price is 70

I would like to know if this is really Sophos' pricing strategy or this is just happening in my country?

Thanks



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  • 0

    This is standard practice throughout the industry. Channel Partner tiers often dictate the levels of discount they receive from a Vendor. The Channel Partner can decide to pass some, none or all of this discount to the end-user.

    The tiers of Partner are generally created based upon knowledge and training status of technical staff, marketing efforts, volume of business and more.

    This is not unique to Sophos, nor is it unique to the technology sector.

    Look for example at how you "buy" hotel rooms now. People use comparison websites like Expedia, lastminute.com, Trivago and so on - they offer the same rooms in the same hotels yet the prices are always different - that reflects the discount the hotel chains give to have their rooms sold in this manner - it's their Channel discount. A lower price will typically indicate a higher level of discount to that website (Partner) which likely reflects the number of rooms they have committed to the hotel that they will sell. (volume discounting)

    HTH,

    Stuart

  • 0 in reply to PMStuart

    I'm actually getting quote from 2 Platinum Partners.
    We tried to migrate partners because of previous negative experience.

    In fact, the new platinum partner first refused to provide me quotation because I am previously tagged to the first platinum partner and telling me that if I get myself retagged to him, he cannot get a the same/lower price because that is Sophos' policy, favoring the first partner because I was tagged there first.

    Actually we already encountered the problem when our first acquisition with XG210 because we do a 2-3 supplier policy. Since everybody's refusing to provide me a quotation because it will just waste their time because they are sure that they cannot get the same or lower price with the platinum partner that I am tagged to.

    In fact when I was successfully retagged to the new platinum partner, it was Sophos' representative who said that they cannot give preferential pricing because I transferred partner.

    Thanks

  • 0 in reply to Andrew Que

    Sir, also take note that when I inquired representing a different company, the price was lower.

    Thanks

  • 0 in reply to Andrew Que

    Andrew, I cant comment on your issue commercially, all I can do is tell you how a channel works. 

  • +1 in reply to Andrew Que

    This is how business works Andrew - everyones business. I change my broadband supplier every 2 years because at the end of contract they put my price per month up and dont offer me the current "offer price" that they give to attract new Customers. The new supplier gives me the same service, but at the lower 'new Customer' price.

    Stuart

  • 0 in reply to PMStuart

    Ok noted. Sorry because this is my first time experiencing this kind of issue. Been dealing with Dell, HP etc. channel partner for years and haven't experienced this issue. So I might as well buy Sophos again as a new customer or maybe change brands.

    Thanks Sir!

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  • 0 in reply to PMStuart

    Ok noted. Sorry because this is my first time experiencing this kind of issue. Been dealing with Dell, HP etc. channel partner for years and haven't experienced this issue. So I might as well buy Sophos again as a new customer or maybe change brands.

    Thanks Sir!

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