Have you noticed significant year over year price increases in your Tech-connect service contracts? Is this determined by the distributor? A 30% hike seems quite substantial.
Rockwell controls pricing based on the type of buyer: End Users and OEMs. End users pay based on the quantity of controllers, while OEMs, Integrators, and similar buyers are charged based on the number of Engineers involved. This pricing structure is essential for determining costs and benefits for different types of buyers in the industrial automation industry.
When dealing with a small number of controllers, end users typically only consider the pricing based on the controller count. However, for companies with dozens to hundreds of controllers, Rockwell's pricing structure shifts to a different tier that is not solely reliant on the controller count. Factors such as the software being used and the number of licenses can also influence the overall cost. Businesses with a medium-sized install base, consisting of 10 controllers or more, may benefit from favorable pricing on new hardware and support, especially if the install base is expanding consistently by purchasing 3 to 10 new controllers annually. Rockwell is known for being open to negotiations, making it possible for customers to secure advantageous deals.
I haven't renewed my software license yet as I'm estimating the number of Rockwell jobs we'll be taking on this year. I have to decide whether to risk potential software crashes or not, which is a tough choice to make.
It is important to negotiate for better pricing to ensure you are getting the best deal possible. I make it a point to do this every few years with my distributor and A-B, and I have always been able to secure some form of discount. The company I work for mainly relies on license resets, software updates, and the knowledgebase for support. When I do need to reach out for assistance, I prefer contacting the distributor for their extensive field experience over calling Rockwell's standard phone support. I always encourage them to review our support history to show that we require minimal assistance. The primary reason we renew TechConnect is for access to software updates.
I mainly use it for staying updated on releases and versions, but I do turn to Rockwell tech support when I encounter crashes.
Yes, I've noticed the same with my Tech-connect service contract. I believe it's not just the distributor determining prices. There are other factors at play like inflation, operational costs, and the rising costs of technology itself. You're right though, 30% is quite a leap. It might be wise to shop around for more cost-effective alternatives or negotiate the current contract.
Yes, I've also experienced a considerable hike in my Tech-connect service contract rate recently. However, I believe it's not entirely the distributor's doing. With ongoing tech advancements, increased cybersecurity risks, and maintenance needs, costs are bound to rise. The 30% increase does seem excessive, but it could be justifiable depending on the level of service and additional features they're offering compared to previous years. It might be worth negotiating or comparing other service providers before renewing.
I've definitely seen some notable increases in my Tech-connect service contracts lately, and a 30% hike is hard to brush off. While I understand that distributors might influence pricing, it feels like there's a mix of factors at play, including inflation and market demand. It's frustrating because, as a consumer, it makes it challenging to budget and plan for these services long-term. Have others experienced similar spikes, or have you found any effective ways to negotiate these rates?
I've definitely noticed some steep price increases in my Tech-connect service contracts this year, and a 30% hike feels pretty excessive, especially in just one year. It seems like these changes often stem from decisions made at the distributor level, possibly reflecting increased operational costs or market demand, but it would be great if they could be more transparent about the factors driving these hikes. It's frustrating because it feels like we're paying for more without a corresponding boost in value or service quality.
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Answer: 1. Why have Tech-connect service contract prices increased significantly year over year? - The price increases are not determined by the distributor, but rather influenced by Rockwell.
Answer: - Yes, Rockwell is responsible for the substantial 30% price increase in the service contracts.
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