[access-uk] Pricing structure and why prices seem high

  • From: "Colin @ New Vision" <cph.newvision@xxxxxxxxxx>
  • To: <access-uk@xxxxxxxxxxxxx>
  • Date: Thu, 29 Jul 2004 18:20:36 +0100

Hi Barry
The prices charged by access technology suppliers can not be compared like for 
like when looking at normal technology suppliers.

All access retailers prices are based on the quantity of sales of a particular 
product minus a percentage of the overheads in selling and supporting that 
product. 

Access equipment has less quantity sales but requires more specialist technical 
support so the pricing structure needs to be higher to cover increased 
overheads.

The highest cost of selling this type of equipment is the demonstration. Most 
companies offer this service free of charge but it can take the best part of a 
full day ( it never seems to be on your doorstep but a few hundred miles away). 
It is very rare that a customer travels to the retailers showroom. More often 
than not a customer will ask for 2 or 3 demonstrations from different 
organisations as a result out of 2 or 3 demonstrations you might only get one 
sale. This also has to be built into the pricing equation, a days wage plus 
travel expenses.

It would be good if everyone knew what they wanted to purchase without a home / 
business demonstration, costs could then be reduced.

The next biggest cost is letting people know who you are and what you do. You 
cannot use the normal advertising channels for obvious reasons. So we have to 
attend exhibitions and shows in all areas of the country. This again is not 
cheap and adds to the cost of sales.

Regards
Colin
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