Market Watcher Context has cut the ribbon for a service that should give the channel a better understanding of fair market pricing.
Tracking Average Selling Prices (ASP) in the channel is often a challenge due to ongoing promotions, bundles and offers in various markets, timed events and vertical promotions.
To help get a clearer idea of what a fair ASP is for a product, Context introduces an IT Price Trend Index to track prices and give distributors and resellers an idea of where things are going.
“It’s a new way of looking at things, designed to support the customer-supplier-business relationship. While traditional ASPs can vary from week to week, depending on the impact of special offers, our index aims to provide a more neutral view of price action, sheltered from extreme price spikes” , said Mathias Knoefel, head of enterprise benchmarking at Context.
“It provides a common basis on which to reduce the time spent discussing prices and making those discussions fairer and more transparent,” he added.
Context kicks things off with Server RAM as the first category listed on the index, for which Context will provide a four-week moving average at a value of 100, which represents the average for 2019, which will show direction in which prices are heading. .
This analysis shows that across Europe’s five largest markets, prices fell in mid-2019, picking up early last year before a sharp drop triggered by the pandemic.
Prices have rallied since the start of 2021, with the UK, France and Spain topping their respective 2019 averages in recent weeks.
Context plans to add more categories to the index soon to provide more price benchmarking for the channel.
The analyst house is building on some of the lessons it has learned during the pandemic about the benefits of digging deeper into the data it collects from European distributors and sharing the insights through regular communication with the channel.
During the pandemic, Context established a weekly tracker where it mapped sales through distribution in European countries, demand for key product segments including PCs and security, and shared advice.
The service was able to identify upturns in key markets after lockdown periods ended and the impact the shift to remote working has had on related products including monitors, headsets and laptops.
Its most recent findings, from mid-June, indicated that volume sales of mobile PCs across Europe had fallen in May, but the numbers were still higher than in 2019. Demand is expected to remain strong in second semester.
“The long-term shift to mobility that the pandemic has supercharged is still underway. Although there may be a slowdown in consumer demand in the second half as people spend more time away from home and prices rise, the long-term situation is quite healthy,” said Marie-Christine Pygott. , senior analyst at Context.
“Hybrid workbenches and continued demand from the education sector will drive sales in the commercial space, so we will see overall growth in the second half of 2021, despite a high 2020 baseline and supply issues. persistent,” she added.