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How important is attitude?
Sunday, October 28th, 2007

The other day, Joe wanted his supplier to give a discount because part of an order was defective. Joe started with a friendly approach. When the supplier wanted more information to understand the problem, Joe became hostile and accused the supplier of unethical behavior.

At this point, the supplier became frustrated and said, “Joe, you have been a good customer for several years. I think that I have been a good supplier for your business for several years. That said, your business isn’t worth the insults and abuse. Joe, I am going to eat the cost of your order. In the future though, please take your business elsewhere.”

To this comment, Joe replied, “You mean that you are going to give up my business that has brought you several thousand dollars a year?”

The supplier said, “Yes, Joe. That is exactly what I mean. The cost of having you as a customer outweighs the benefits. I hope that you find a supplier that better meets your needs.”

What steps might have enabled Joe or the supplier to avoid this situation? How could the issue have been defused in the conversation? Are these issues that you have encountered in your supplier or customer relationships? If so, what steps did you take? What would you do differently, if you faced this issue today?

In short, how important is attitude in your business (and what action do you take to manage it)?

Posted in Business Acumen, Customers, Negotiations, Solving Problems, Sourcing | No Comments »



What problem do you help people solve?
Saturday, October 27th, 2007

The other day, Sally asked for help with her business. Sally wanted people to make referrals to her. When asked who would be a good referral, Sally said, “anyone who needs my services.”

How many referrals was Sally likely to receive with such a response? Sally may receive referrals from such a response, but the referrals are likely to be all over the map.

What happens though if Sally tells the person how to identify a good referral? It may lead to more referrals, better referrals, and greater confidence in the referrals that are made.

The starting point when seeking better referrals is to know what problem you help a person solve.

Posted in Achieving Goals, Business Acumen, Business Tips, Networking, Solving Problems | No Comments »



Emotions in negotiation
Sunday, October 7th, 2007

In simple negotiations, emotions can lead to faster agreements. Think about the person who “falls in love” with a new car. In many cases, the person buys the car without regard to the fact that his or her current car is just a few years old and running fine.
When negotiations are more complex, longer, or fulfillment of the contract will require effort and commitment from all parties, some rely on emotion. Does it work? Well, it may work for some individuals even in this situation.
In these more complex negotiations, emotional responses can be a negative. When emotions are involved, important questions may go unanswered. These questions may include:

  1. How will we fulfill the deal?
  2. Why is this deal important to both parties?
  3. How can we make the deal better for everyone involved?
  4. What issues are likely to arise as part of the project? How will we know that the issues have arisen? What should happen if these issues arise?
  5. Who needs to have what information? Why? When do they need it?

In other words, emotional responses often prevent people from thinking through and planning for the real world issues that determine the success (or lack of success) associated with complex projects.
How can people deal with emotions in negotiations?

Posted in Achieving Goals, Business Acumen, Negotiations | No Comments »