Navigating the Pricing Disadvantage: Strategies for Success?
Indian resellers are finding it increasingly difficult to do business with Autodesk due to recent changes in pricing strategies. Autodesk’s decision to sell AutoCAD LT online at ₹27,000 + 18% GST, the same price offered to resellers, has created a challenging environment. With only a 2% discount on bulk orders from distributors, resellers are struggling to maintain their competitive edge.
Autodesk’s pricing parity means that customers can purchase AutoCAD LT directly from Autodesk at the same price as from resellers. This situation has led to several issues including resellers can no longer rely on competitive pricing to attract customers. With Autodesk controlling the pricing, resellers have little room to offer discounts while maintaining profitability. More customers may prefer buying directly from Autodesk, reducing the role of resellers. On top of this larger IT distributors and e-commerce platforms may receive better pricing, making it harder for smaller resellers to survive.
Indian resellers are in a difficult position due to Autodesk’s pricing strategy, but by focusing on offering superior service and value, they can still thrive. By maximizing the 2% discount, enhancing value-added services, diversifying offerings, targeting specific markets, providing flexible payment options, and leveraging local presence, resellers can maintain their competitive edge and succeed in the market.
If Autodesk’s intention is to reduce reliance on resellers, it becomes even more crucial for resellers to adapt and find new ways to add value. By shifting from a product-selling approach to a service-driven model, resellers can continue to play a vital role in the market.
As one reseller says, “We need to focus on what we can offer beyond just the product. Our strength lies in personalized service and local support, which Autodesk’s online store cannot match.”
