Every so often, I hear about integrators disclosing their exact product markups to end users. Basically, they show that they bought Camera X for $212.48 and will sell it to the end user for $247.63 (or whatever the number might be).
Typically when I have heard it, it is for large customers that have significant pricing power and can demand such transparency / accountability. However, there is also some though that this is a fairer way to do business.
Recently, we have been talking about the flaws of two common approaches:
- Low bid RFPs forcing end users into sacrificing quality and exposing risk to change order games
- Vague integrator proposals that might be screwing the end users with massive markups
Disclosing exact product markups offers an alternative to those two.
That said, I am sure overwhelmingly this response will be negative to this idea. So good idea, shoot me down, please!