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Business System Consultation Center - Our Business System ColumnVol.35 2013.09.01 Takahashi Minoru

What happens when you demand discounts on a system quote

Thank you for your interest and continued support.
This is Takahashi from the Marketing Plan Research Laboratory.


When providing system quotes,
we operate under a strict policy of never offering discounts.
We ask all our clients—the company presidents—to adhere to this policy.


This is because we do not wish to engage in claims—such as
or to make claims such as “we have a brand or a story”
which is, in our view, beyond our station.


We would like to explain the reasons why we do not offer discounts below.
We would appreciate your understanding.


1. We want to focus on building a high-quality system
Pricing is at the core of business management, and while it is not advisable to shy away from price negotiations,
we believe it is right to focus on “what a system should be” and “how we can contribute to each company.”
.
We will, of course, set prices appropriately,
separately, we strive to create high-quality systems
and we make this our top priority.


2. Discounts inevitably place a burden on other company presidents
Developing a system requires significant labor and equipment costs.
Discounts directly become our liability, and we must recoup them through other projects.
These other projects are usually not “future projects for the same company,” but rather “projects for other companies in the immediate future or at the same time.”
This is because we face short-term cash flow issues,
making it difficult to implement a strategy of “balancing the books through long-term transactions with a specific company.”
Due to the circumstances described above, if we offer a discount to Company A,
we would be forced to “secretly add” that discount amount to the quote for Company B,
we have decided to decline requests for discounts.


3. When team members or contractors complain that something is “too much trouble”
In business, the use of the phrase “too much trouble” is highly inappropriate
and is an extremely disrespectful expression toward our clients, the company presidents.
due to my own lack of knowledge, I have been unable to find a more suitable word, and I would appreciate your understanding.
This section is intended to provide an honest look at our internal situation and is not meant to criticize the CEOs who request discounts.
That said, as soon as price negotiations begin, the assigned team members and contractors immediately start muttering, “This is a hassle.”
While none of our members or contractors work solely for financial gain, it is also true that none of them ignore the psychological aspect of monetary compensation.
Given our desire to treat these internal members appropriately and create a better system,
we have decided to decline requests for discounts.


This concludes my statement.
Thank you for your attention.

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