Preparing the published article.
Reading a Robot Price War
Price cuts are not all the same. Identify the reason before you celebrate.
Four patterns
| Pattern | Underlying cause |
|---|---|
| Direct price cut | Overcapacity or inventory pressure |
| De-contenting | Options removed while the list price holds |
| Extended warranty | Service promises instead of a discount |
| Relaxed payment terms | A discount paid for out of the supplier cash flow |
How buyers should respond
- Normalise the configuration before comparing prices.
- Write the service content and response time into the contract.
- Treat a very low price as an open question about later charges.
Price is an outcome. Delivery and service determine the long-term cost.