What’s Up with Bundled Pricing?

On this episode of What’s Up, Mike Bellini gives us a little break room talk about why bundled pricing isn’t always the best deal.

In today’s optics industry, OEMs are simply processing transceiver orders from somebody else, and bundling their pricing to protect margins on their hardware. They’re relying on suppliers for the actual transceiver manufacturing.

Optics can account for up to 20 percent of a given bill of materials and according to Gartner, are being marked up as much as 350 percent. So what can you do to keep them honest? Ask them for two quotes, a quote for hardware and a quote for optics. This way you can negotiate a fair price on both the hardware and the optics.

Remember, you don’t have to settle for bundled pricing, and it isn’t always the best deal. Use these tips to ensure you’re getting the best quality optics for a fair price, and with the money you save, you’ll be able to build out more networks faster.

Send us your unbundled pricing for a competitive analysis by giving us a call at 1-877-402-3850.

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