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SNATSMC

Can a Reseller have a better rate than GSA?

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I have a GSA Schedule in which a company has asked to be a Reseller and to list my products on the Reseller's GSA Schedule. I just re-negotiated our prices with GSA and therefore told GSA that we are offering them our lowest commercially sold prices. If we add a Reseller, the Reseller is expecting some kind of discount in order to make a profit. If we offer the Reseller a discount of say 10% off our GSA Schedule are we required to also reduce our GSA rate? I realize that our CSP will have to be modified to include a Reseller, and that's not a problem. I just don't want to further reduce our GSA Schedule rate because we're supposed to give GSA our lowest rate.

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I have a GSA Schedule in which a company has asked to be a Reseller and to list my products on the Reseller's GSA Schedule. I just re-negotiated our prices with GSA and therefore told GSA that we are offering them our lowest commercially sold prices. If we add a Reseller, the Reseller is expecting some kind of discount in order to make a profit. If we offer the Reseller a discount of say 10% off our GSA Schedule are we required to also reduce our GSA rate? I realize that our CSP will have to be modified to include a Reseller, and that's not a problem. I just don't want to further reduce our GSA Schedule rate because we're supposed to give GSA our lowest rate.

You will have to submit a new CSP, and then based on that CSP submittal, GSA will likely want to renegotiate your rate.

Who is your basis of award?

GSA will push for most-favored-customer pricing, and you will have to make an argument as to why they are not entitled to it.

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I would base your discount off of your Commercial Price List and not your GSA rate. GSA will always go after the Most Favored Customer rate, and thus creates a vicious cycle. Why would you want a reseller's price to be lower than your's anyway, just out of curiosity...

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Hi SNATSMC,

I would be very, very careful here.

From a newspaper article --

Oracle was finding ways around the GSA restrictions in order to give commercial customers even deeper discounts, according to the complaints. One alleged practice saw Oracle ?selling to a reseller at a deep discount ... and having the reseller sell the product to the end user at a price below the written maximum allowable discounts,? [the complaint] states.

Link to a blog post discussing this story (along with another case of "Technology Fraud") --

http://www.apogeeconsulting.biz/index.php?...s&Itemid=55

Hope this helps.

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