How can I negotiate the best price from my video equipment vendor? I was comparing prices between the Polycom HDX Series and the Polycom Group Series video equipment, and I found that the vendor in India discounts the HDX heavily, while the Group Series comes at a premium. Where can I find price lists to help me in vendor negotiations?
According to a Polycom partner website, the Group Series is more cost-effective in the United States. What the vendor in India is probably doing is marking up the Group Series because they can. It's a new product, probably somewhat constrained in availability, and they are taking advantage of an opportunity. I've seen this kind of tactic when an exciting new car model is introduced, where you find a line item on the price sticker called added dealer markup, or ADM. I would never pay that, but apparently some people do.
To find price lists, a simple Web search of your vendor's product and "price list" after it should yield a number of results to give you an idea of what's out there. Prices will surely vary per project, deployment and -- as you discovered -- region in the world. However, you can use these resources as leverage in your vendor negotiations.
Here are a few articles from TechTarget you might find useful to help you prepare for your vendor negotiations:
- How to take control of contract negotiations
- How to avoid vendor contract negotiation pitfalls
- How to negotiate network service contracts
This was first published in October 2013