Everyone Has Some Bad Electronic Component Pricing

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Stock Keeper
Component Pricing
Paumanok   4/2/2013 4:26:40 PM

Certain galactic distributors charge much more than 2X per component ASP; FYI.

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Supply Network Guru
FLYINGSCOT   4/1/2013 4:20:27 PM

I suppose one tends to focus on the price of a few major components and it is difficult to find the time to study the true cost of every single component in a complex system  The best companies find a way to check every component and I know benchmarking is a great tool for this.

Ken Bradley
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Re: Sounds like
Ken Bradley   3/31/2013 12:47:12 PM

 Pricing varies considerably from customer to customer. Sometimes its cause is the length of the channel as from manufacturer to distributor through the contract manufacturer where each can add markups that result in large variations to alternate channels. At other times initial pricing starts out higher than market and remains at that level. A third cause is a lack of focus by the consumers because their limited resources are focused on high value components. Over time this lack of attention leads to current pricing that has missed cost trend improvements. Pricing is usually not cost plus and cost improvements from market changes or learning curve that are not being tracked are often not automatically passed  on.

In any case, the use of a low cost method of benchmarking your price position against market yields significant benefits. These savings can increase your profits or fund additional break out room equipment to further boost employee morale.

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Stock Keeper
Re: Sounds like
HM   3/31/2013 1:29:50 AM

How does the price vary so much if the mfr is the same maybe different geography distributors base price must be the same

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