Price rejig to aid Norman conquest

Anti-virus specialist Norman Data Defense tempts resellers with discounts predicated on projected yearly business

Price cut: VARs can buy in batches of 25 at prices based on annual volume targets

Anti-virus vendor Norman Data Defense has overhauled its reseller buying structure to help its channel partners compete on price with national retail chains.

The Norway-based vendor has begun offering VARs discounts based on an annual volume target, meaning they no longer have to buy in bulk to obtain best value.

David Robinson, Norman’s UK general manager, claimed Microsoft’s entry into the anti-virus market two years ago fuelled increased pricing pressure in the channel.

“We are seeing large discounts at retailers and this is causing problems for smaller resellers,” he said.

Robinson claimed that anti-virus prices through distribution now regularly exceed retail price points. The only way for independents to compete is by buying in bulk, he argued, but this will leave them with old stock and dent their cash flow.

Norman is now allowing its resellers to buy in batches of 25 at prices based on expected annual volume.