Negotiation

Work with eagles when you are negotiating

August 11, 2009

Mike who I work closely with as a partner and an associate, sometimes works with a large training supplier. This supplier wins transactional training contracts at fine margins and then finds someone to deliver the training at the minimum price. Mike used to be head of learning for a major international bank and is an expert. On this particular contract the contractor having won the business, had no one to write the material for them and turned to Mike, at short notice. Unfortunately they also turned to an ex colleague of Mike’s, Peter who committed 3 cardinal sins – of negotiating which I wouldn’t want to happen to a client of mine.

The client sent out the brief which was detailed. Mike read it, made notes and prepared for the meeting. He didn’t hear from Peter so he rang him to find out his views. Peter had not read the brief nor had he done any research. Next day Peter turned up late for the meeting; Mike had been with the client for 12 minutes before Peter arrived. He was embarrassingly dripping with sweat, as it was a hot summers day in London. Finally the next day, the client suggested a price of £750 for the work completed, to Mike and Peter separately (divide and conquer) Mike flinched and said his normal price was £1000 per day. Peter without discussing it with Mike accepted. He said to Mike afterwards he thought the price was fair (fair to whom, I wonder)

Mike and the client are professional – Peter a complete amateur. Learning points
1 – Always prepare
2 – Always be early for meetings
3 – Get your act together on pricing

If you are dealing with two parties – divide and conquer as the client.

Message for Mike, sorry mate – Fly with the eagles don’t scratch with the turkeys

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