Preparing the published article.
Comparing Vendor Pricing Models
Two quotes can describe two different commercial animals.
Models you will meet
| Model | Characteristic |
|---|---|
| List price with discount | Standard hardware sale |
| Configured project price | Includes integration and tooling |
| Subscription | Recurring fee including service |
| Outcome based | Charged per unit handled or per hour |
| Lease | Fixed payments with return at the end |
How to compare fairly
- Normalise the scope, service level and term before comparing totals.
- Include consumables and spares in every model.
- Check exit terms as carefully as entry terms.
Pricing models vary by vendor and market. Model the total over the intended service life.