Recently we have gotten feed back from customers that stating they almost did not consider the NetEqualizer because the price was so much less than solutions from the likes of: Packeteer (Blue Coat), Allot NetEnforcer and Exinda.
Sometimes low price will raise a red flag on a purchase decision, especially when the price is an order of magnitude less than the competition.
Given this feed back we thought it would be a good idea to go over some of the major cost structure differences betwen APconnections maker of the NetEqualizer and some of the competition.
1) NetEqualizer’s are sold mostly direct by word of mouth. We do not have a traditional indirect sales channel.
– The down side for us as a company is that this does limit our reach a bit. Many IT departments do not have the resources to seek out new products on their own, and are limited to only what is presented to them.
– The good news for all involved is selling direct takes quite a bit of cost out of delivering the product. Indirect sales channels need to be incented to sell, Often times they will steer the customer toward the highest commission product in their arsenal. Our direct channel eliminates this overhead.
-The other good thing about not using a sales channel is that when you talk to one of our direct (non commissioned) sales reps you can be sure that they are experts on the NetEqualizer. With a sales channel a sales rep often sells many different kinds of products and they can get rusty on some of the specifics.
2) We have bundled our Manufacturing with a company that also produces a popular fire wall. We also have a back source to manufacture our products at all times thus insuring a steady flow of product without the liability of a Manufacturing facility
3) We have never borrowed money to run Apconnections,
– this keeps us very stable and able to withstand market fluctuations
– there are no greedy investors calling the shots looking for a return and demanding higher prices
4) The NetEqualizer is simple and elegant
– Many products keep adding features to grow their market share we have a solution that works well but does not require constant current engineering