When it comes to distribution of almost anything, the world is now flat. That means, that anyone
can easily check to see if they are getting a product at the lowest price. Symantec seems to
forget that channel pricing for the same product is transparent must be consistent.
I have been a customer of their virus protection product for many years. This time, I got a notice
saying that my license would renew at $79.99. This seemed expensive to me so I checked
Amazon for the same product. Their cost was only $29.99 to download it. Amazingly, Symantec even sells this same product on their website for less.
As a current user, why should I pay a price that is over 50% higher that anyone can get on their site? (Not even mentioning Amazon!)
I contacted Symantec through chat and asked them for a lower price. They first offered $49.99
since I was a “good” customer. They then came down to $39.99. When I asked them why I
couldn’t get the Amazon price, they said that that company buys “in bulk” and that product does
not include “Norton Expert Technician” support. However, according to their website, every purchase includes “From the moment you subscribe, a Norton expert will help keep your devices virus-free or give you a refund.” I believe that the larger price is just an excuse to renew current customers at a higher rate.
Competing with your company’s own distribution channels is not good business. Asking your current customers to pay a higher price than what is listed on your web site is insanity. It also leaves your customers with the impression that you are ripping them off for being an unsuspecting, but loyal user.
Higher prices can be justified. If your company wants to sell direct to customers at a higher price, then add some value that they can’t they from a channel partner.
