There are companies, where people responsible for purchasing are measured(!) by discounts they get. So if you want to sell them something for $1,000, you say the list price is $5,000 and give them 80% discount. I saw several such situations at my previous job.
Marian Gasparovic On 6/4/06, Steve Comstock <[EMAIL PROTECTED]> wrote:
R.S. wrote: [snip] > What pricing model is fair ? > I don't know. However I know, what is reality: it is necessary to fing > competitive vendor, get their offer, including migration assistance, and > re-negotiate the original agreement. Result: 1/3 of original price. In > fact, I don't care what pricing model they prefer, how many programmers > they hire, especially how many sales specialists have income from my > account. Competition gives me reasonable prices, because I have an > alternative. > But then you get into today's mentality: everything is price, nothing is quality. We have the same problem in pricing training. In fact, just about any non-monopoy business has difficulty setting the "right" price for their products or services. We are fanatic about keeping our courses current and in developing new materials as fast as our resources allow. Our competitors don't do that, generally speaking. Instead, they compete on price. And in a market mentality that price is everything, we will lose even if we have the better, more appropriate offering. For years we have only offered discount prices in very special circumstances, feeling our prices are fair and competitive. But we find, as one poster in this thread pointed out, management loves to get a "discount" - real or perceived. So we are considering re-structuring our prices then offering discounts, so that the net is about the same but the training coordinator can boast about the discount they got! It's a bit of a sham, but perception is reality today. [Any comments on this strategy?] Actually, playing mental games with it is kind of fun. Suppose we set our daily rate at x_dollars, then how many different discounts can we offer so that the net is y_dollars? What do you base discounts for training on? New client rates, first time a course is taught rates, bulk training rates, preferred client rates, small class size rates, large class size rates, ??? Kind regards, -Steve Comstock ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [EMAIL PROTECTED] with the message: GET IBM-MAIN INFO Search the archives at http://bama.ua.edu/archives/ibm-main.html
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