The newsagency marketplace is over serviced with software companies. There were eight at my last count. That is five or six too many. As with any mature marketplace the most popular way for a new entrant to gain traction is on price. They don;t have the cost of supplier relationships nor the cost of a large customer base and this, they say, makes their system cheaper.
That would be okay if their system was cheaper.
On newsagent was told last week that this new system was half the price of ours. To compare they showed the price o their package deal and priced it against us. The catch is that they used what I’d call spare parts pricing. An off the floor Holden is cheaper as a built unit than if you go to the spare parts counter and buy every bit separately. This is where our competitor misled the newsagent.
If they have taken our current off the shelf package and compared it to theirs they would have shown the newsagent that the two systems were within 1% of each other on pricing.
Thankfully, the newsagent did the research and purchased our system.
Competition is good in any market. It keeps all players honest. Misrepresentation is ultimately found out.