Allen Bradley Standardization

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Thread Starter

Scrounge

Jun 6, 2005

• #1

We have always been 100% A/B until recently. Under pricing pressure from our best customer, we have switched a few components to another source. Now A/B has doubled our price to teach us a lesson. We can get our old pricing back if we promise to standardize on them. Has this happened to anyone else?

 

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Steve Myres

Jun 6, 2005

• #2

I've had special negotiated pricing from a number of distributors for all or part of a certain manufacturer's line, but it never came with a clause prohibiting me from using components from someone else, though it is in your best interests to concentrate your ordering to those with whom you have such agreements. I would be cautions about letting them "teach you a lesson" as they may decide you need more lessons in the future.
--
Steve Myres, PE
Automation Solutions
(480) 813-1145

 

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Michael E. Crossman

Jun 6, 2005

• #3

Do you buy direct from Rockwell Automation (If so you must be a very large user) or do you buy from a distributor? If you buy via a distributor you should contact your local Rockwell Automation area manager and make them aware of this price doubling. I assure you they will not agree with this policy and help you get the pricing you deserve. Good luck.

Best regards,

Michael E. Crossman
PLCs Plus International, Inc.
http://www.bkppi.com

 

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Anonymous

Jun 6, 2005

• #4

Allen-Bradley has turned from a top supplier to some what of a crook, in my mind. In the past, we used AB for everything and they have treated us in a simular manor. We have continued to use AB, but only for what our market demands. Good luck, and stand your ground. There is a lot of other quality manufacturers out there.

 

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Curt Wuollet

Jun 6, 2005

• #5

It wouldn't happen twice. Sounds like they've been a
Microsoft "partner" for too long.

Regards

cww

 

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Bob Peterson

Jun 7, 2005

• #6

This is a common tactic with many suppliers, not just in the automation world. I would not make too much of it.

 

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Bob Peterson

Jun 7, 2005

• #7

AB can give out some really good prices when they want to. I would not be at all surprised to see a substantial increase in price to a customer that stopped buying as much. AB just does not seem to want to deal with the smaller users as much, and seems to focus on the bigger users. It's where the money is, so why not?

I don't think it is crooked, unethical, or even a bad business practice. A company has a right to set its own pricing policies. And if you no longer purchase enough stuff that you are so favored, that is really your problem.

 

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N. Parkinson (Eventide Electrical)

Jun 7, 2005

• #8

In Britain AB have decided to control prices by having only one official distributor! This certainly damages their sales in this region. Many manufacturers (including us) buy AB equipment directly from the US, saving up to 50% (nearly two dollars to the pound at the time of writing). It's a shame, A lot of AB equipment is good, but I cannot recommend it because of its high price and restricted availability.

On the brighter side, Rockwell have confirmed to me, that they would honour all warranty claims for equipment, wherever it was bought. Also, some items, the Powerflex drives for example, are now available through major electrical distributors like RS. It is worth mentioning that Rockwell technical support in Britain is excellent.

 

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Dean Norton

Jun 7, 2005

• #9

Scrounge,

WAGO would be happy to support you PLC, I/O, etc. needs and not double your prices to teach you a lesson. A anonymous said, there are many other quality manufacturers out there. If you are interested, I would love the opportunity to earn your business.

PLC with PC features http://www.wago.us/products_us/286.htm

WAGO-I/O-SYSTEM
http://www.wago.us/products_us/289.htm

Dean Norton
WAGO Corporation
1-800-346-7245
[email protected]

 

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Marc Samson

Jun 7, 2005

• #10

Hi,

I have used http://www.protocolconverter.com communication products (Ethernet to DH+ Bridge) in the past and DataLinks are half the price of AB's with the same reliability. There are other options out there.

Mark Sampson

 

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marc sinclair

Jun 8, 2005

• #11

If you re-read the original post, this is not a volume pricing issue, the discount seemed to be dependent on the exclusion of competitors equipment. Besides being anti-competitive behaviour, this should ring alarm bells. Doesn't the manufacturer think that their products can compete on quality?

marc sinclair

 

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marc sinclair

Jun 8, 2005

• #12

Hi,

Yes we too use 'grey import' AB equipment, but even at the 'cheap' US prices an automation solution is considerably more expensive than using other manufacturers. I agree about the tech support though - first class.

marc sinclair

 

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Bob Peterson

Jun 8, 2005

• #13

I did some work for a client that was having control panels built in canada. AB's pricing there was more favorable than in the US. Even with having to ship the completed panels from Canada, the difference in parts cost (and to a small extent the slight difference in labour costs) made it economically feasible.

Bob Peterson

 

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FACTORY AUTOMATION SYSTEMS LTD

Jun 8, 2005

• #14

Hi Parkinson,

Let me know where I could save such an amount on AB products. We face similar problem.

Rgds
Gabriel

 

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Bob Peterson

Jun 11, 2005

• #15

It works out the same way. If you are using competitive products, presumably you are using less AB products. But, I have never heard that AB has such a practice. They do encourage sole sourcing by making the price attractive if you agree to it.

 

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Hugo at IAI

Jun 11, 2005

• #16

To add to the general "teaching of lessons" theme: Rockwell Automation is now taking integration, consulting, engineering work away from us. Maybe the lesson that we need to learn is to deal with suppliers/manufacturers that have a clear understanding of their place in the market, and respect our place. Maybe our opinions need to be more clearly brought to those who need
to hear them. Maybe we need to assert our influence.

Of course the have the muscle to do what they want, of course they can set prices as they like. But only as long as we buy!

Throughout my career I have never been "taught a lesson", I have learnt lessons when I was good and ready. For anyone, manufacturer or distributor, to exhibit the attitude of teaching lessons to their customer base is indicative of serious problems in their brain supply chain. Start working on getting on with someone more supportive. Anyone interested in an un-opened
Rockwell Automation Toolkit?

Hugo

 

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Curt Wuollet

Jun 12, 2005

• #17

The problem there is the same as with Windows. People are so used to being manipulated and exploited that they not only accept it, they come to identify with the exploiters. It's the Stockholm Syndrome all over. This attitude
allows the companies to do pretty much whatever they want. It's not muscle, simply brainwashing or successful propaganda to the effect that they must stick with their captors for safety.

Regards
cww

 

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Steve Myres, PE

Jun 13, 2005

• #18

It's not the same thing at all, Bob. In the original post, he said his preferred pricing was withdrawn after doing a single project with components from another source. Certainaly an agreement based upon purchase of a certain projected volume is a far different animal than one based upon the exclusion of other sources. Not saying it's illegal or immoral or anything, just probably not in the best interests of the customer to buy into.

 

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Bob Peterson

Jun 14, 2005

• #19

If I recall correctly, that is not what he said. I believe he said he had changed out some components and used cheaper ones. i got the impression he had switched to a different brand for thos components for all his projects.

maybe my recaller is bad.

 

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Controlmaster

Jun 19, 2005

• #20

This my attiude toward this. I'm just a single man operation. When I got in automation, try every automation supplier out there to get information on there products. The only one that would give the infromation was AB. They when way of there way to help in any way. That been about seven years ago, an they still do. Like I said, I'm a very small operation. I tell my customer that AB is the only product that I'll use. The qaulity is more important then the price. I'm building my bussiness on qaulity. Even if I make less money. Because I do not want to be out there in the middle trying to fix things. In seven I've been very luck or a very good product.Everybidy is worried about the price. What about qaulity!!! does it mean anything anymore!!!. You have to be very firm with your customer and supplier to get the best for everybody. You got be faithful to both of them too.