Every business thinks it is unique and special and in a way it is. Once one understands the business model which even the owners have problems comprehending you know precisely what the company should be doing to grow.
Business development is the key to any business. Unless you are creating sufficient quality opportunities to sell and converting them into orders you are unlikely to have a successful business.
However, learning to buy efficiently as well as sell is also important. Increased competition and the need to discount in many product led businesses, especially on the web, means every pound you can save can be spent on promoting the business or increasing profit.
I can honestly say that in my last big business virtually the only items we paid the going rate for were our taxes. The rest we negotiated. It really is amazing how easily people are willing to reduce their prices if only they are asked.
Here is a simple process which will save you a fortune. Like all processes, if you believe it will work it really will work.
Step one - remember something which has really shocked you. It might have been an item you read in the papers or saw on TV or something someone told you. It really outraged, surprised and horrified you. Have this in your mind as you proceed to the next step
Step two – if you can avoid it, do not actually ask the price – let the seller tell you. OK it might take a while but they will eventually tell you. Asking too early shows you are too keen and can reduce your buying leverage.
Step three (and this is the important one) - When told the price you say (conjuring as much surprise and shock as can muster – see step one) HOW MUCH? And shut up. It is amazing just by just saying these two words you will often have your seller saying ‘well we could possibly.....’. and the price slide has begun.
Step four - there actually might not be the need for a step four but if your first outraged reaction did not do the trick you use the following five ‘WE COULDN’T POSSIBLY AFFORD THAT’ and shut up again.
You will be amazed at the impact of this simple process on what you eventually pay for anything, providing you do it every time and say it as you mean it.