Cabletron's list prices for networking gear tend to give customers a bad case of heartburn. So the vendor last week began publishing discounted product prices on its electronic commerce site.
Analysts said Cabletron's list prices are as much as 50 per cent higher than those of rivals, resulting in rankled users and lost business.
Cabletron has responded by posting the list price and a discounted price that users get when they make purchases via the company's Web site (www.cabletron.com). The online discount can amount to thousands of dollars, depending on the product. Cabletron receives 80 per cent of its revenue from repeat customers and wants to drive down that percentage by landing new accounts.
One analyst said the move will have marketing and cost benefits. "Cabletron's strategy here is to eliminate the perception that they are the high-price provider of networking products," said John Morency, vice president at US consultancy Renaissance Worldwide.