Upload & Sell: On
I'd really encourage a rereading of Glort's first post (I haven't read the second yet). He gift wrapped a few seminal truths that less experienced business people often have a hard time embracing.
Okay, just read Glort's second post. More gold.
In what F industry can you negotiate like that?
In every single industry and exchange wherein the client/customer is dealing with someone who has the authority to adjust pricing and/or the package.
The big boys in business do this all the time. We all do it with our spouses and children - all the time.
There are probably ten or fewer cornerstones of human interaction, and negotiation isn't just in that top ten... it's probably in the top three. It's human nature. While it's sort of a game it is real and we're best served to not be offended by it but well prepared to waltz with our "adversary" and find the win.
That's what Glort is saying. "Are you f***ing kidding me? You have a prospective client that wants to book and all they may want is a little feel good about the deal? And you can't make that happen?"
I grew up in mom and pop retail and have spent 20+ years in wholesale and been responsible for everything from $10 to $1,000,000 deals. Under the hood, they are all the same. Find the win-win.
Its disrespectfull BS.
In essence, not at all. The person may be disrespectful, but the concept isn't anything but good business for everyone. Show me a person who gets pissy or offended during a negotiation and I'll show you a person not entirely in control of his business world and short on understanding of human nature.
The argument could be made that any business person who doesn't leave room for, or have a plan for negotiation is simply naive. In medium to large corporations learning to effectively negotiate is one of the top training matters that companies tend to.
I said "adversary" above and that's exactly what they teach you to not think. Healthy, functional negotiation isn't about one party winning and the other losing. It's truly about the win-win wherein both parties feel like they orchestrated a favorable outcome customized to the situation.
And that is the great opportunity. The mental spin is that pricing is based on the average circumstance. But once I know what you value, and understand how I can tailor what I'm selling to most satisfy you and yet maintain my profitability, big win for both of us.
The issues are:
1) pricing credibility. If I give you a discount, does that mean my prices were inflated to begin with? Not at all. It means I have a baseline formula and you asked me to look at this particular situation and see what additional goodness I can offer that you would find valuable;
2) consequently, worth understanding that pricing is based on average circumstances; that the actual situation is never perfectly average and so, by definition, there is almost always room for discussion without losing credibility - especially in a luxury goods industry like ours wherein the customer is almost always dealing with the person who does in fact have the authority to make adjustments to the price and/or the overall package;
3) understanding that the only reason we don't commonly negotiate these days is we typically aren't dealing with the person in authority. That's how businesses generally charge consumers full ticket - because we aren't interacting with those in charge;
Nevertheless, when I went to cancel the television portion of my cable bill a few days ago, the underling on the phone starts throwing all kinds of concessions and special prices at me to try to keep me hooked into that service. That's negotiation. The shitty kind.
In me cancelling, the cable company interprets that as negotiation opportunity. It can be hugely aggravating, but it is what it is and for us to deny those realities of business is simply burying our head in the sand. My reaction was "why the f**k didn't you just offer me your best deal in the first place?"
Well, because I didn't ask.
And if you think of it that way, our clients that ask if we have any wiggle room aren't being offensive, they're simply being thorough. The difference between us and the cable company is, if we are smart, having a plausible explanation for tailoring the deal to our clients to adjust "the average" to "the specific" without losing credibility.
Interesting case study:
Trump "negotiates" the Lockheed Martin F-35 contract down $700 million. Big win for him, or so it seems. Later, Pentagon and Lockheed Martin officials suggest that was likely to happen regardless but Trump turned it into bragging rights - which is one common feel good in negotiations regardless of whether or not it's real.
All that said, it is true that some clients/customers are delusional, and some are assholes, and best to walk away from them. Not everyone has the skill, awareness and intelligence for successful negotiation.
The question is, are we among that group, or do we know how to create the win without feeling like we've lost?
Edited on Mar 16, 2017 at 02:52 PM · View previous versions