Wednesday, July 11, 2012

Fair Pricing

Making WAN emulation easy is not just a matter of producing intuitive, simple to use network simulators, but ensuring that Apposite is a responsive, easy-to-work-with partner. And though that doesn’t end with making the products affordable, it does at least start there.

Our pricing model is simple. We set a fair, highly affordable price for all our products, and that’s the price. “But where’s the discount? Cisco gives us at least 40% off list price,” is a common refrain from shocked customers.

We’ve been in IT long enough to know how it’s supposed to work: we show you a marked-up price list, you reiterate to the sales rep the immense size of your budget and he offers a big discount if you order now.

Then you hold off ordering for a few weeks and he calls up to offer an end of quarter special, or end of week, or end of day, or overstocked inventory, or something, anything to get you to send in your PO right away. Then you come back with your counteroffer and the sales rep has to get approval from the sales manager, who has to discuss it with the territory manager who has to call the VP of Sales to sign off on the deal.

That’s just too much hassle for everyone. We make the process simple: that great price that our best customers get -- we give that to everyone. Doesn’t matter if you’re big or small, doesn’t matter if you’re in a hurry or not.

The experts say we’re leaving money on the table since we could charge most customers more than we do. But we figure that all those layers of sales management needed to run the process of squeezing the last dollar out of each customer has its own cost. So we remove that overhead and help bring down the price for everyone.

So next time one of our competitors offers you that special huge discount, keep in mind that 50% off a price list that’s been marked up by 4x over our prices means you’re still paying twice as much as you should. And with us, you know you’re getting a fair deal from the start, with no tricks and no hidden licensing fees, and without the hassle. Because our job is to make your job easier.

For the sake of complete honesty, there are three caveats to our pricing policy. First, for contractual reasons, the U.S. Federal government gets a price slightly below the commercial price. Think of it as saving your tax dollars. Technology partnerships include special pricing programs based on other benefits to us. And if you’re outside the U.S. and Canada, not all of our international sales partners, which may handle a range of products, have bought into this unusual pricing strategy.

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