Supply, Demand, & Your IT Support Contract

//Supply, Demand, & Your IT Support Contract

Supply, Demand, & Your IT Support Contract

Many view the economic laws of supply and demand as they do the first law of thermodynamics. They believe that energy can be neither created nor destroyed with the same confidence that they believe that, as supply increases within a market, the price for those goods falls (and vice versa).

We accept these laws as absolutes and assume that they apply everywhere. However, when it comes to the laws of supply and demand, for some reason, your original equipment manufacturers (OEMs) think that their maintenance programs should be an exception to these rules.

The Pseudo-Monopoly

Because they manufacture the original hardware, OEMs are often considered the leading authority on the equipment they sell. This alone does not grant them a monopoly over the industry or its support contracts, and yet they continue to issue over-inflated maintenance agreements as if they have a monopoly over you and your business.

So, how do you break the monopoly and stop them from raising their support prices? By actually bringing the laws of supply and demand back into the equation.

Supply and Demand in Your IT Support Contract

As aging equipment is phased out, decommissioned hardware becomes increasingly available in the secondary market. Consequently, the law dictates that, as supply increases, prices should fall. However, rather than respond to this natural market pressure, the OEM uses their pseudo-monopoly to ignore it altogether and make a large profit on it support contracts instead.

At CentricsIT, we see IT support differently. Because we fundamentally disagree with that method of price inflation, we decided to flip the OEM support model on its head.

The CentricsIT Difference

Unlike OEMs, we respect the market. When we save, so do our clients, because we sell our hardware at a price that honors the laws of supply and demand. Not only that, CentricsIT makes a global market on refurbished hardware, enabling us to source our refurbished stock from anywhere around the globe. This reach further assures that we get the very best deal on the parts that our customers need most.

In fact, due to our differing billing philosophies, we typically save our clients anywhere from 30-40%+ when they purchase third-party maintenance contracts from CentricsIT, but on some product lines, that percentage goes even higher. By working with us, you can anticipate seeing similar results.

Don’t Ignore the Law of Mutual Savings

In short, ignoring the laws of supply and demand could be causing you to miss significant savings for your company. While OEMs take advantage within their pseudo-monopolies, CentricsIT instead partners with our clients to bring about mutual success. We’d like to propose a new law of economics: when we save money, you will also.

Want to reintroduce supply and demand to your maintenance contracts? Speak to one of our Support Consultants today about how we can help you capitalize on global market supply.

2018-08-02T11:17:18+00:00