2 minutes and £24k in the bank account…

I’m not sure whose idea it was, but the green saris and straw hats are almost perfect camouflage for the staff at the Mauritius hotel I’ve been staying at for nearly 2 weeks…

These green-clad ladies ‘emerge’ from the undergrowth, softly saying ‘Mr. Lowe how can I help you?’  only to then bow and ‘melt’ back in to the foliage (… and at times,  yes, even though they were extremely polite they did catch me out, and did make me jump!)…

So what made the magically appearing and disappearing staff, early morning tropical bird song and the sound of the waves on the coral reef even better? Knowing that…

I saved over £24k before I set foot on the outbound flight… How?

Let’s face it, most people, myself included, don’t like paying more than they have to.  So when I was quoted a figure for the air fares for my family and I to fly out to Mauritius (beautiful but a very, very long flight…) I decided a bit of ‘negotiation’/haggling/discussion’ was required…

Call it what you like, but the end result is the same! A better outcome

I DO make a habit of it, almost always it makes sense. ‘She Who Must…’ hates it though … Especially when I do it in shops!!!

Now I’m not talking about haggling over the price of a loaf of bread from the supermarket, or a CD on Amazon…

But think about this … from a quick conversation I had a few weeks ago and shuffling times and dates around slightly I was able to reduce the overall cost of my family’s flights by £24k. Was it worth 2 minutes of amicable discussion? Absolutely.

By the way, you might wonder what the final price was if I saved £24k???? Er, that would be under £6k for all of us, First Class, to a place that is more than halfway to Australia!!!!

The same is true when you do business…

A few minutes of discussion can make the difference between making good profit and superb profit (or even being out of pocket if you really mess things up!) …

What do I mean? Well a recent example comes to mind…

…A chap approached me to do a joint venture deal with him in a sports equipment repair business niche. It should have worked out quite well.

The business idea was sound, and he’d set everything up, ready-to-go…I liked it and wanted to promote it…but did I go with it? NO. Because the guy hadn’t stacked the deal up properly…

The costs for his writer, web designer, other techie fees, stock of the repair equipment, and the warehousing, almost exceeded what he was charging for this business opportunity leaving him with… well … less than the minimum wage for each sale (and having to work for that too)… Not an attractive proposition, so everyone lost out (the others were on a percentage of the sales… so no sales, no further money made).

He’d forgotten the important point… to negotiate himself (and me, or any other partner) in to a profitable position.

If your deals don’t stack up profitably you need to question why you’d want to progress, and this all occurs at the very beginning.

Even if you’re offering a free physical product, people are usually quite willing to pay the P&P costs so you’re not out of pocket for your ‘freebie’.

Just because there’s a price shown, or a set way of doing things don’t assume that’s the ONLY way…

You’d never dream of buying a house or a car for the list price would you? So consider price tags as ‘suggested prices’ and see what a little bit of negotiation can do for your business…(oh, there is just one notable exception – not when buying anything from me of course J )

Until next time,

Tim Lowe

Publisher, Tim’s Business Lowe Down

Tim Lowe