"GSA also wants information on factors that drive the range of markups such as volume, product category, support levels and business size. The questions also wants to know if sourcing hardware through a distributor versus directly with the OEM drives variations in the markups. GSA wants to identify ways to reduce the cost on items that are not purchased directly from OEMs."
"The Trump administration is increasing its scrutiny of markup prices that value-added resellers charge on IT hardware sales to the federal government. A new request for information released Thursday morning asks VARs to share information about pricing practices, markup percentages and whether the services they provide justify their costs. In the RFI, the General Services Administration cites an analysis that found "significant variance in the valued added services offered and the corresponding markup percentages applied to original equipment manufacturer prices.""
GSA issued a request for information asking value-added resellers to disclose pricing practices, markup percentages and whether provided services justify extra costs. The agency cited analysis showing significant variance in value-added services and corresponding markup percentages relative to original equipment manufacturer prices. The RFI requests details on VAR relationships with OEMs, ranges of hardware markups, and factors driving markups such as volume, product category, support levels and business size, including whether distributor versus direct OEM sourcing affects markups. GSA seeks ways to lower costs for items not bought directly from OEMs and to streamline procurement.
Read at Nextgov.com
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