What's with the massive price difference between Dell VAR prices vs xByte prices??!?
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@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dustinb3403 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
So the difference is what Dell (new) is willing to let go of the equipment and what Certified Referb gets you.
The equipment from xByte could've been used as a demo unit, open box or ordered incorrectly and returned.
xByte is a way better value than purchasing direct. Especially since you can get a 3 or 5 year warranty.
I'll actually be having this argument within a few days I bet. . .
Yeah I see that now. I've been working on server builds, price quote comparrisons and spreadsheets for weeks now and I've only just seen the xByte stuff and we have a presentation tomorrow for a request to spend money on a much needed server refresh. Having the xbyte prices in there is going to make things look really good.
I think I will go through xbyte even if my VAR tells me they can match their prices...
You're VAR would lose a fortune to do that as they don't have access to xBytes equipment. The only way your VAR could do that is if they bought from xByte themselves, and sold to you.
Which would still mean they'd have to mark up the pricing to make any money. Which wouldn't beat the price or match the price that xByte has. . .
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@dustinb3403 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dustinb3403 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
So the difference is what Dell (new) is willing to let go of the equipment and what Certified Referb gets you.
The equipment from xByte could've been used as a demo unit, open box or ordered incorrectly and returned.
xByte is a way better value than purchasing direct. Especially since you can get a 3 or 5 year warranty.
I'll actually be having this argument within a few days I bet. . .
Yeah I see that now. I've been working on server builds, price quote comparrisons and spreadsheets for weeks now and I've only just seen the xByte stuff and we have a presentation tomorrow for a request to spend money on a much needed server refresh. Having the xbyte prices in there is going to make things look really good.
I think I will go through xbyte even if my VAR tells me they can match their prices...
You're VAR would lose a fortune to do that as they don't have access to xBytes equipment. The only way your VAR could do that is if they bought from xByte themselves, and sold to you.
Which would still mean they'd have to mark up the pricing to make any money. Which wouldn't beat the price or match the price that xByte has. . .
But they don't have to mark up the price, they only have to convince you to burn your bridges.
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Not all sales tactics are about making money right this second, a smart salesman is going to lead you to where he makes money "eventually". A VAR knowing they are about to lose a customer will almost always do something drastic to retain you, and price matching is an easy one. It sounds like they are doing you a favour and makes it feel like a good thing to do, when it almost never is good to do at all. It makes the customer into the bad guy and burns relationships on both ends.
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@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dustinb3403 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dustinb3403 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
So the difference is what Dell (new) is willing to let go of the equipment and what Certified Referb gets you.
The equipment from xByte could've been used as a demo unit, open box or ordered incorrectly and returned.
xByte is a way better value than purchasing direct. Especially since you can get a 3 or 5 year warranty.
I'll actually be having this argument within a few days I bet. . .
Yeah I see that now. I've been working on server builds, price quote comparrisons and spreadsheets for weeks now and I've only just seen the xByte stuff and we have a presentation tomorrow for a request to spend money on a much needed server refresh. Having the xbyte prices in there is going to make things look really good.
I think I will go through xbyte even if my VAR tells me they can match their prices...
You're VAR would lose a fortune to do that as they don't have access to xBytes equipment. The only way your VAR could do that is if they bought from xByte themselves, and sold to you.
Which would still mean they'd have to mark up the pricing to make any money. Which wouldn't beat the price or match the price that xByte has. . .
But they don't have to mark up the price, they only have to convince you to burn your bridges.
This is true. . .
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@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@jaredbusch said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
I think I will go through xbyte even if my VAR tells me they can match their prices...
They can't. That is not how it works.
Well actually one time my VAR matched the exact refurb prices that I was going to get from xbyte like last minute. I got like 5x Dell N series switches brand new for refurb price - which was like $2,500 each instead of the $7k or w/e they were when I was buying them.
They can take a loss if they want, most likely they were just having xByte deliver them directly and not marking them up.
But here is a simple rule... if you need your VAR to match a better price somewhere else, your VAR is making you do extra work and burn other relationships up front to lock you in. You waste time and effort (that's money) and other vendors won't keep quoting you good prices if you don't then buy from them. Tricking you into raising the price from other vendors is how price matching works out for your VAR.
I don't understand this part: "Tricking you into raising the price from other vendors is how price matching works out for your VAR."
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@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
Not all sales tactics are about making money right this second, a smart salesman is going to lead you to where he makes money "eventually". A VAR knowing they are about to lose a customer will almost always do something drastic to retain you, and price matching is an easy one. It sounds like they are doing you a favour and makes it feel like a good thing to do, when it almost never is good to do at all. It makes the customer into the bad guy and burns relationships on both ends.
Yeah I got that feeling a little bit and I am careful not to burn bridges.
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@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@jaredbusch said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
I think I will go through xbyte even if my VAR tells me they can match their prices...
They can't. That is not how it works.
Well actually one time my VAR matched the exact refurb prices that I was going to get from xbyte like last minute. I got like 5x Dell N series switches brand new for refurb price - which was like $2,500 each instead of the $7k or w/e they were when I was buying them.
They can take a loss if they want, most likely they were just having xByte deliver them directly and not marking them up.
But here is a simple rule... if you need your VAR to match a better price somewhere else, your VAR is making you do extra work and burn other relationships up front to lock you in. You waste time and effort (that's money) and other vendors won't keep quoting you good prices if you don't then buy from them. Tricking you into raising the price from other vendors is how price matching works out for your VAR.
I don't understand this part: "Tricking you into raising the price from other vendors is how price matching works out for your VAR."
Your VAR is making you find the best price, and then swooping in and saying OKAY, I'll let it go for $X cheaper.
It's essentially them not taking any risk and getting all of the reward, while locking you into that single vendor. Since no one else will ever want to quote you anything, since you never purchase from them.
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@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@jaredbusch said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
I think I will go through xbyte even if my VAR tells me they can match their prices...
They can't. That is not how it works.
Well actually one time my VAR matched the exact refurb prices that I was going to get from xbyte like last minute. I got like 5x Dell N series switches brand new for refurb price - which was like $2,500 each instead of the $7k or w/e they were when I was buying them.
They can take a loss if they want, most likely they were just having xByte deliver them directly and not marking them up.
But here is a simple rule... if you need your VAR to match a better price somewhere else, your VAR is making you do extra work and burn other relationships up front to lock you in. You waste time and effort (that's money) and other vendors won't keep quoting you good prices if you don't then buy from them. Tricking you into raising the price from other vendors is how price matching works out for your VAR.
I don't understand this part: "Tricking you into raising the price from other vendors is how price matching works out for your VAR."
The vendor is convincing you to go get good prices from other people. Those people are providing good prices in the hopes of earning your business by being better. Your vendor then convinces you that even though the new vendor treated you better, to stick with them. Your old vendor (the price matcher) now knows that you aren't loyal and will shop around, so they know it's time to "drive to the bottom" and lower prices by lowering service. The new vendor (the one giving you a good price) gets taught that doing a good job for you gets them nowhere and getting you a good quote is a waste of resources, so they will stop doing so and just start quoting rack rates, because you are just wasting their time.
"Shopping around" for prices is a dangerous game unless you are just looking up public web prices. But a VAR, by definition, is not about price but about services. If you care about price, then using a VAR is a mistake every time. You want a pure reseller who isn't marking up to add services to the product. Yes, in IT we need to ensure our prices are good. But you can't get good prices by going around to everyone and getting quotes, it will feel like you are getting good prices, but the products are not directly comparable and the best prices exist only for loyal customers with good relationships.
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@dustinb3403 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@jaredbusch said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
I think I will go through xbyte even if my VAR tells me they can match their prices...
They can't. That is not how it works.
Well actually one time my VAR matched the exact refurb prices that I was going to get from xbyte like last minute. I got like 5x Dell N series switches brand new for refurb price - which was like $2,500 each instead of the $7k or w/e they were when I was buying them.
They can take a loss if they want, most likely they were just having xByte deliver them directly and not marking them up.
But here is a simple rule... if you need your VAR to match a better price somewhere else, your VAR is making you do extra work and burn other relationships up front to lock you in. You waste time and effort (that's money) and other vendors won't keep quoting you good prices if you don't then buy from them. Tricking you into raising the price from other vendors is how price matching works out for your VAR.
I don't understand this part: "Tricking you into raising the price from other vendors is how price matching works out for your VAR."
Your VAR is making you find the best price, and then swooping in and saying OKAY, I'll let it go for $X cheaper.
It's essentially them not taking any risk and getting all of the reward, while locking you into that single vendor. Since no one else will ever want to quote you anything, since you never purchase from them.
And those other vendors learn you area bad customer - looking for the lowest price and not sticking around to be a customer. Once they learn you aren't ever going to be a good customer, there is no reason for them to try to win you over or do a good job - because they know that doing a good job for you doesn't earn loyalty. If you don't care if they do a good job, why would they?
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@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@scottalanmiller said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@jaredbusch said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
@dave247 said in What's with the massive price difference between Dell VAR prices vs xByte prices??!?:
I think I will go through xbyte even if my VAR tells me they can match their prices...
They can't. That is not how it works.
Well actually one time my VAR matched the exact refurb prices that I was going to get from xbyte like last minute. I got like 5x Dell N series switches brand new for refurb price - which was like $2,500 each instead of the $7k or w/e they were when I was buying them.
They can take a loss if they want, most likely they were just having xByte deliver them directly and not marking them up.
But here is a simple rule... if you need your VAR to match a better price somewhere else, your VAR is making you do extra work and burn other relationships up front to lock you in. You waste time and effort (that's money) and other vendors won't keep quoting you good prices if you don't then buy from them. Tricking you into raising the price from other vendors is how price matching works out for your VAR.
I don't understand this part: "Tricking you into raising the price from other vendors is how price matching works out for your VAR."
The vendor is convincing you to go get good prices from other people. Those people are providing good prices in the hopes of earning your business by being better. Your vendor then convinces you that even though the new vendor treated you better, to stick with them. Your old vendor (the price matcher) now knows that you aren't loyal and will shop around, so they know it's time to "drive to the bottom" and lower prices by lowering service. The new vendor (the one giving you a good price) gets taught that doing a good job for you gets them nowhere and getting you a good quote is a waste of resources, so they will stop doing so and just start quoting rack rates, because you are just wasting their time.
"Shopping around" for prices is a dangerous game unless you are just looking up public web prices. But a VAR, by definition, is not about price but about services. If you care about price, then using a VAR is a mistake every time. You want a pure reseller who isn't marking up to add services to the product. Yes, in IT we need to ensure our prices are good. But you can't get good prices by going around to everyone and getting quotes, it will feel like you are getting good prices, but the products are not directly comparable and the best prices exist only for loyal customers with good relationships.
At this point though, I'm thinking my VAR is really just a re-seller. He doesn't add too much value and when he does give his input, I think it's usually based on a bit of antiquated IT knowledge.. We've bought workstations, servers, firewalls and MS licenses through him but he also does consulting and services sort of like a MSP. My boss has in the past hired him to do consulting and things so we've paid him for "services" and things.... So going back to all the stuff I've seen you post on SW, we were buying stuff from the guy who was also doing the consulting... you know the rest of the story. However, I more or less halted this when I came on. I started asking questions, doing my own work and shopping around for better deals on hardware. I still go to him now and again mainly for MS licensing and the last thing was new Dell switches which I got refurb price.
