Product prices and margins going down

Strange things have happened to IT purchasing over recent years. Everyone has surely noticed that most of the products cost next to nothing. A corporate standard laptop used to be a couple of thousand euros per piece - these days you would struggle to pay more than a thousand. LCD screens for a price of a business lunch, servers for a price of an office chair.

Prices are not the only thing decreasing. Huge discounts are fast becoming history. Competition is moving the IT channel towards a perfect market. It is so competitive that there is nothing left to give away.

Salaries are going up

Meanwhile, the trend of salaries of people purchasing IT are going up sharply. Especially in Central and Eastern Europe, but due to shortage of IT skills also in Western Europe. Not to mention that there is an ever increasing variety of these low price IT goods purchasers have to source.

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