MS price disparity angers partners in Bihar

PATNA, INDIA: Dealers across Patna are complaining of the price difference in Microsoft software in the metros and the upcountry markets. Operating on the same line as in Siliguri, Microsoft has appointed two regional distributors in Patna apart from the regular national counterparts in the state. Dealers allege they are being forced to buy Microsoft software from the regional distributors on terms dictated by Microsoft.

Sources revealed that the price quoted by sub-distis in Patna is at least 10 percent more than that in the metros.

“The price of MS software in Kolkata and Delhi are at least 10 percent lower than that in Patna. Already Microsoft has a small market and even smaller sales figures here. Now, since the company is quoting higher prices than the metros our turnover figures are seeing steep fall,” said SN Prasad of Cygnet Computers.

A dealer added, “Over a year back, Microsoft had sent a legal team here to address the price issue assuring us they would work on securing a balanced price. However, the issue still remains the same and there is a huge price difference as compared to the metro markets.”

Refuting the charges about price parity in Bihar, Sanjay Patel, Branch Manager of Ingram Micro India said, “There is no fluctuation in dealer prices for Microsoft across India. It is the same whether in metros or in upcountry markets including the freight and delivery charges.”

Accusing Microsoft of setting unrealistic sales targets for partners in the state, PK Sinha of Astric Computers complained, “In Patna, dealers are incurring heavy losses in selling Microsoft software and licenses. In the process of meeting the sales target set by Microsoft, the dealer has to buy from the sub-distributor at a higher price here than in the metros and sell it at a discounted price to customers, thereby incurring losses.”

Discussing the situation in Bihar and annulling allegations by the channel partners, Tushar Makkar, Head—Business Value Communications, Microsoft assured that the MRP is always decided by the dealer or retailer and the company has no control over dictating the price in the market.

Throwing light on the situation, Hemant Chabria, Secretary—East, ISODA said, “Since metro markets have a larger volume in sales, dealers in metros get a higher amount of back-end discount from the national distributors while in upcountry markets, as the sales are low, this discount doesn’t play any role. In the metros, due to the discounts, the dealer price comes down bringing down the MRP but it’s not the same as in the upcountry.”