Opengear cuts list prices by 30 percent

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Opengear cuts list prices by 30 percent

Opengear has shaved an average 30 percent from the list prices of its console server and management products to reflect the strong value of the Aussie dollar.

Founder and chairman Bob Waldie said Opengear had taken a bet on the economic outlook and reset its Australian price book at a "bullish... 90 cent plus rate".

The reset was unusual because it was the first major price list variation the company had undertaken.

"We tended to work on a basis that the Australian dollar had a long-term average of between 75 and 80 US cents," Waldie said.

"In general we've ridden with that and not done exchange rate variations. But the outlook now I believe - and the bet we're taking, although I'd say it's a conservative bet - is that the dollar will stay robust compared to the American dollar, so we think it's appropriate we should be adjusting our prices [on that basis]."

Waldie believed customers should expect the prices of hardware products to fall, particularly where their costs were pegged in US dollars.

"More broadly, it's appropriate that people importing products aren't taking the opportunity [of the exchange rate] to accrue short-term profits," Waldie said.

"I think it's a challenge that our businesses [here] aren't necessarily sharpening their pencils as much as competitors overseas. In the long term that's not good for [Australian customers]."

Opengear sells most kit in Australia through systems integrators, although it has a direct online presence that accounts for approximately five percent of sales.

Vendors have been criticised recently for not dropping hardware prices in line with the strong dollar, after being quick in many cases to raise prices as the dollar weakened last year.

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