What is the discount?

What is the Discount?

How much do you discount yourself?

This was one of the very first Pinto's Pointers originally published in
Action Instruments InterAction - July 1991

By : Jim Pinto,
San Diego, CA.
USA

Why discount?

You know, I’ve never been able to understand why people "discount" as much as they do ! It usually happens when you’re selling what is commonly thought to be a "commodity" - something available from a number of different sources - like soy-beans and pork and scrap-iron. For these things, as well as for some commonly used items in the instrumentation business, it sometimes seems like discounting is a way of life. And the lowest bidder wins. Or loses?

You're selling Value!

As a Systems Integrator, you are selling value - your knowledge, your experience in the business, your understanding of the problems that are involved, your ability to solve the problems that will inevitably come up, your availability to help the customer when needed. So, when you are asked : "What is the discount?" you have every right to be offended, because the person who is asking is discounting your services and your value.

You’ve heard the story of the Consultant who was called to repair a machine that had stopped the factory and tightened a single screw within about 5 minutes to re-start the whole place. Then, she sent in her bill for $ 2,000 - and the customer was outraged - "You spent just 5 minutes here, and we have received a bill for $ 2,000!" The Consultant smiled, "The tightening of the screw was free. The $ 2,000 was for knowing which screw to tighten!’

Lowest price is for the lowest...

I’ve often wondered why people boast about their products being the lowest cost. One would have thought that pride would involve being the highest-cost. When hiring people, do they always hire the lowest paid? When buying food, do they always buy the cheapest? If they do, then I, for one, would rather not do business with them.

ACTION INSTRUMENTS strives to provide the most value - the best specifications, the best performance, the best quality and reliability, the best delivery, the best applications assistance, the best after-sales support, the best looking product literature, the most helpful documentation. We do all that at a price that is the best value for the Customer. We strive to be the "lowest cost producer" and make the highest profit-margins - so that we can share our success with our Sales Representatives and our Systems-Integrator partners.

So, what is your discount?

So, the next time someone ask you "What is the Discount?" - give them a funny look, willya?! Ask yourself whether you should really be doing business with that person, or that company!

We have a motto, here at ACTION : Let’s have some FUN and make some Money! Without one, you can't and won't have the other!

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