IT Software Channel Partners face unethical pricing practices from MNCs

In this age of online boom, there is a steep rise in competition. IT businesses operating offline face a lot of challenges on a day-to-day basis. The condition worsens as various brands like Autodesk, Adobe, and Corel follow unethical pricing policies. All of them are big IT giants and are associated with multiple Indian channel partners.

After interviewing various channel partners, DQ channels found that since the year 2013, partners have been facing problems from the side of these companies. As these tech firms have started selling their products and services directly to the end customers. 

Most of them offer special discounts online, dual prices online which is ultimately reducing the market for the channel partners. 

For instance, Adobe is offering discounted prices on its online portal. But, the prices for partners are 10% higher than what they offer for customers online. Such a steep high price is a concern for the associations. 

How have multinationals like Autodesk and Adobe changed with time?

In an ideal situation, online prices should be at least 8% higher than the prices for the channel partners. Earlier, companies like Autodesk and Adobe stated that they have channel partner-friendly policies. But, with increasing online business they are not honouring their channel partners policies.

Now, they have certain terms and conditions for channel partners. When associations made some complaints then Adobe offered them target-based discounts. Partners have to sell the products for a certain amount only then do they get an 8% discount.

Companies like Autodesk an American multinational have several terms and conditions for the channel partners. They ask resellers to buy at least 5 copies for approx 7-10% discount. They offer the same prices on the website for end users as same as they offer reseller prices.

All these tactics by these big MNCs are to boost their online business. They are following such malpractices to increase their gains by directly selling products to the end users. 

Not only that, they save a huge amount of tax by billing customers on their credit cards outside India. 

These tactics of tech giants are not only affecting the channel partners but could affect Indian Economy as well.

Alludo(Corel) discriminates against Indian Educational Institutions 

It has been confirmed by a reputed dealer, that Alludo (COREL) sells its products at a ridiculously high price to the Indian channel partners compared to the other countries. Also, they have unfairly stopped selling educational licenses to eligible educational institutions. Several schools, colleges, and Universities in India are paying three times the price due to this issue.

They have withdrawn the educational subsidized prices only from India while other countries are still getting those benefits.

These are some of the major concerns which are faced by channel partners over the years. Major associations like PCAIT and ISODA have tried their best to overcome these issues but problems have only worsened.