Hey guys, can anyone explain me on what basis the pricing for support services for DCS systems is done. Is it dependent on the % of list price of hardware or some fixed standard price. Any example. (for Rockwell)

How do these vendors reach the final pricing of a particular service for DCS and for a whole service contract? Especially Rockwell Automation.

How are the discounts decided and upto how much do they provide for support services?

How is the renewal price determined? (for support contract)

Is there a kind of software used by vendors to reach a particular price?

Thanks a lot in advance.

 

Normally, they look the list price of the hardware at the installation. Even if they sold at 50% discount, they will still look at the list price. Then they will charge a %age of that value for an annual maintenance contract. This value will look to be high compared to the value at which you purchased the equipment.For you to compare, look for the past order value and ask them what percentage are they considering for AMC.

 

Thanks a lot Sudeep.

The % of list price may vary from 5% to 30% for support services (if I am not wrong). Is there any kind of Software used to determine the final pricing of the Service Agreement? What are the parameters that are taken into considerations?

Is this (% of list price system) also true for Siemens as well.