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Discounts and approved supplier lists

There are times when our "no discounts" policy can bite us in the bum.

In reality our policy is that we ALWAYS offer a discount off the sort of rates that you would pay elsewhere for a course on a similar subject and of a similar duration; I've just been comparing a five day Perl course that we provide at 1210.00 + VAT with another that's listed at 1575.00 + VAT. I see no point in us overpricing by 30% so that we can take some of that back off ... I know that if your push that other company, you'll be able to get them to knock 10% off (or 15% if you're really pushy). And at 15% off, you're still paying over a hundred quid more to them than you would to us.

So .. why do people get taken in by inflated prices and discounts?

People think that they're getting a great deal if there's something off. They'll notice a discount of 150 pounds much more than they'll notice a price difference between between 1500 pounds and 1200 pounds. And they'll feel special if they think they're being given a better-than-regular deal

And why is it a practise that I hate so much?

Because it's deceitful. Because it's unfair. Because it favours the pushiest of potential clients over and above those who are equally deserving but less "bolshy". And because I've stood in front of classes where everyone has paid a different price and had to answer "why did he get it for xxx pounds" asked by a furious delegate who paid 20% over xxx.

Yet, as I say, the policy can occsionally bite back at us. These days, many organisations are setting up centralised buying departments to flex their muscles and purchase from there, with a view to actually getting that 150 pounds ... or more ... off the 1500. "What special deal will you offer us" they ask on their invitation to be on their approved list. And a reply of "none" looks rather like a slap in the face. Even such outfits as the BBC have been through this loop ... but good for them, they can see the wood for the trees, they do have experience of the courses we provide, and we have just learned that we're on their list for the next two years.
(written 2006-06-17, updated 2006-06-19)

 
Associated topics are indexed as below, or enter http://melksh.am/nnnn for individual articles
G502 - Well House Consultants - Business Practice
  [4520] No cold sales calls please - but delighted to hear from others! - (2015-09-29)
  [4415] Buffet review - taking the price into account - (2015-02-05)
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  [4107] Snog, Marry, Avoid - (2013-05-31)
  [3755] Cruising on the Mersey Ferry? - (2012-06-07)
  [3750] Matching opening hours to when customers can come in and buy - (2012-06-04)
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  [3613] Keeping Business Local. But is that realistic? - (2012-02-13)
  [3506] Cold call contacts - preference services and turning off spam sales approaches - (2011-11-03)
  [3333] Honesty and a friendly welcome goes a long way - (2011-06-25)
  [3157] A new monopoly on the ferry to Northern Ireland - (2011-02-04)
  [3073] Customer Service - the boundary - (2010-11-27)
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  [2936] The service that customers should receive - (2010-08-27)
  [2821] Chancellor George Osborne inspires Perl Program - (2010-06-22)
  [2788] Cost of Sales - (2010-06-01)
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  [2465] Melksham Town - asleep or awake? - (2009-10-21)
  [2331] Certification Revisted - Lua - (2009-08-09)
  [2283] Everyone is in the customer relations business - (2009-07-12)
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  [2187] Are we IITT (Institute of IT Training) members? - (2009-05-17)
  [2161] Get it right ... if it goes wrong, it takes so much effort to sort out! - (2009-05-08)
  [2126] Weeding out old phone numbers - (2009-04-11)
  [2122] Commission Creep - (2009-04-08)
  [2044] Please Trouble me - (2009-02-16)
  [1913] Alastair Darling helps make paperwork and confusion - (2008-11-30)
  [1855] Volunteer v Employee - a skewed balance? (FSB) - (2008-10-25)
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  [1626] Early May - a short chance to regroup and improve - (2008-05-01)
  [1485] Copyright and theft of images, bandwidth and members. - (2007-12-26)
  [1453] What makes our courses special? - (2007-12-02)
  [1394] Business to Business Networking - North and West Wilts / Melksham - (2007-10-17)
  [1373] New Month, New Quarter, New Laws - (2007-10-01)
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  [1319] Customer feedback - lifeblood of a business - (2007-08-25)
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  [808] Sales call - (2006-07-19)
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  [200] Tips for the top - (2005-02-03)
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  [77] Telephone systems - (2004-10-07)
  [68] Get the strategy worked out and the tactics just fall into place. - (2004-09-30)
  [27] Sales technique - (2004-08-25)
  [15] 90 to 10 or 80 to 20 rule - (2004-08-15)


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This is a page archived from The Horse's Mouth at http://www.wellho.net/horse/ - the diary and writings of Graham Ellis. Every attempt was made to provide current information at the time the page was written, but things do move forward in our business - new software releases, price changes, new techniques. Please check back via our main site for current courses, prices, versions, etc - any mention of a price in "The Horse's Mouth" cannot be taken as an offer to supply at that price.

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