Why have VTEL lowered pricing and margins?

Well, the obvious answer is to make their products as competitive as possible and give you, their channel partners, as much assistance as they can to help you find and close sales.

That being said, some of these savings have been achieved by reducing the reseller margin. However, the new reseller prices are at least the same as the old prices and most are much lower.

VTEL have decided to come in line with the rest of the industry with a similar discount structure to their competitors.  Having said that, you should consider these points:

4   In most cases, the reseller buy price from VTEL has fallen, in some cases, significantly.

4   VTEL does not publish SRP pricing even for the USA.

4   Unlike the case when selling some competitor products, the number of VTEL channel partners is significantly smaller and therefore, when you quote VTEL at these new prices, more often than not, you will sell at or close to your list price.

4   All resellers outside of the USA have to create their own pricing in local currency and to take account of shipping, customs, duty costs and currency conversion risks.  You may continue to set your own pricing (and therefore margins).

However, VTEL’s view is that you will want to price the products as competitively as possible on the basis that 20-or-so% of growing sales is better than 45% of no sales!

VTEL have, at the same time, greatly simplified the price list to help our resellers sell the product line.  This includes an industry-leading, single trade-in price for each product irrespective of whether a VTEL or a competitor codec is being exchanged (check with Intermedia for qualifying competitor systems).

With the introduction of VCS4.0 for Windows XP and 2000, there has never been a better opportunity to upgrade those 1st and 2nd-generation codecs out there.