Top 20 Tech and Channel Trends of 2009
18. Price Integrity Slips; Margins Under Pressure
You won’t find too many headlines heralding the virtues of price integrity, but solution providers talked about it ad nauseum in 2009. As recession fears took root in the economy, many solution providers panicked and started selling goods and services—particularly services—at any price they could get. Vendors and larger solution providers noticed the affect as average sale prices slipped, taking with them the rich margins that fueled profitability. Conversely, end users with budgets under pressure pushed back on ever proposal and bid; many did so trying to get better prices or to stretch their dollars, but many did so out of the belief that they had been overcharged for years.