The American Discount Culture

Just coming out of the holidays, and I am amazed at what I'll call America's discount culture. We love a bargain.

People will stand in line for hours to get 20% off, and drive 100 miles in their SUV's at 12 MPG (that's $16 in gas money!) to save a few dollars on their 4th TV. I just don't get it...

There are times when price is the only consideration, but not many. By commoditizing everything, we lose the value of service. A simple example is my wife tells me gas is cheaper one town over by $0.05/gal, but it costs another 1/2 gallon in gas to go there. And when the money leaves our towns tax base, who do you think picks that tab up? The taxpayer, of course.

Even worse than "everyday low prices" are the "sales" that we are innundated with during the holidays. Do you think that an additional 20% off our already low price with an additional 20% off this weekend means that the store is normally selling at 40% margin, or are they selling at a loss this Friday? We need to wake up and see the big picture. Companies have a right to make money- our whole economy is based upon this idea!

Americans needs to break the discount mentality where the price determines who gets the sale. We make important decisions based upon many factors throughout our lives. A prime example is where we live. We don't buy the cheapest house in the worst neighborhood at the lowest price because we understand the value of our home and a good neighborhood. Cost only partially influences our decision. And there are no "sales", so we are forced to negotiate a fair value with the sellers.

When I bought my truck, I "know" the car game pretty well. I honestly didn't care what type of truck I bought- my requirements were generic enough that the manufacturer didn't seem to matter. However, when I went to my local Nissan dealership, I was blown away by their service. I could have negotiated a better deal, but I valued their efforts to win my business. There was give and take, with both sides agreeing that the deal was fair. Much like my buying my house, I considered other factors before price, and made an educated decision.

I have been in sales for the past 7 years, and I am often confronted with buyers that want the best price. Regrettably, I can not offer that to my customers, but I can offer them the best service. I try to focus them on the value side of the equation- Do you care if it's done right? If there are problems, will you need additional help? Are you buying gas at the gas station or gas at the service station? Will the low cost provider notice if your tire is low? Will they wash your windshield? If these things are important to you, then pull up to the pump.

If not, I hear gas is a nickel cheaper 5 miles up the road.