What's your best negotiation or deal
Discussion
In the middle of a negotation and looking for some inspiration or motivation as it's dragging out somewhat with a stalemate at both sides.
So, PH, what is your best ever negotated deal?
- talked them down from 1 million down to £4.50 with a the promise to put two coats of wax on your car as well?
Let's hear your best business wins - without revealing companies etc.
So, PH, what is your best ever negotated deal?
- talked them down from 1 million down to £4.50 with a the promise to put two coats of wax on your car as well?
Let's hear your best business wins - without revealing companies etc.
Three particularly spring to mind ( I turnaround distressed businesses so quite often our backs are against the wall to such an extend that the boot's on our foot as the alternative is getting nothing):
Large retail unit (75k sq ft from memory) rented in a prime mall - initially halved the annual rent as part of a restructuring; then halved it again when we sold the business as the new owners knew what I had achieved and wanted me to have another go (as part of the refi deal); then negotiated a 3 year rent free period when COVID initially hit (brought in again by the new owners)
Negotiating on my own fees - normally a day rate but consider a reduction in the rate with the £ reduction going into a bonus pool at 3x£ rate - I offered the discount on the basis that 'success' would be the business being solvent at end December - they countered with solvency at end February - I was fine with this as I thought the business' crunch point wasn't until March - so ended up with a much larger bonus as obviously more days to work on the project from the start to end Feb than there was to end December.
HMRC TTP I agreed last year that was for far longer than initially offered - nearly £20m of value deferred - I did have 'all the cards' though as the refi partner would only invest on the basis of xx months and without it the company was bust - took the best part of 6 months to negotiate that one.
Large retail unit (75k sq ft from memory) rented in a prime mall - initially halved the annual rent as part of a restructuring; then halved it again when we sold the business as the new owners knew what I had achieved and wanted me to have another go (as part of the refi deal); then negotiated a 3 year rent free period when COVID initially hit (brought in again by the new owners)
Negotiating on my own fees - normally a day rate but consider a reduction in the rate with the £ reduction going into a bonus pool at 3x£ rate - I offered the discount on the basis that 'success' would be the business being solvent at end December - they countered with solvency at end February - I was fine with this as I thought the business' crunch point wasn't until March - so ended up with a much larger bonus as obviously more days to work on the project from the start to end Feb than there was to end December.
HMRC TTP I agreed last year that was for far longer than initially offered - nearly £20m of value deferred - I did have 'all the cards' though as the refi partner would only invest on the basis of xx months and without it the company was bust - took the best part of 6 months to negotiate that one.
I started a business because a German company told me they didn't trade in the UK as there was no demand, and I didn't believe them.
Two years later they bought the business from me, and offered me a decent cash sum. I negotiated a lower cash sum and shares with a put-and-call. 20 years later, the value of my shareholding has increased by at least 400%, and all I have to do is attend a board meeting every three months.
Two years later they bought the business from me, and offered me a decent cash sum. I negotiated a lower cash sum and shares with a put-and-call. 20 years later, the value of my shareholding has increased by at least 400%, and all I have to do is attend a board meeting every three months.
Bob Massingbird?
Bob Massingbird was the most brilliant legal mind in all of England. He once got a killer freed (and knighted in the New Year's Honours list), even though the man had been seen committing the murder by 13 witnesses, held the murder weapon in his hand and told arresting officers: "I'm glad I killed the b
d" indicating that he was clearly guilty. The family of the victim was even forced to pay to have the blood washed out of the killer's jacket.
Bob Massingbird was the most brilliant legal mind in all of England. He once got a killer freed (and knighted in the New Year's Honours list), even though the man had been seen committing the murder by 13 witnesses, held the murder weapon in his hand and told arresting officers: "I'm glad I killed the b
d" indicating that he was clearly guilty. The family of the victim was even forced to pay to have the blood washed out of the killer's jacket. 3 weeks in the job as Invensys (Schneider) HVAC Sales Director.
We supplied BGas with thermostatic radiator valves (Drayton TRV4) and had done for years apparently, it was many many units with a significant chunk of my divisions turn over.
The contract was up for grabs by reverse tiered tenders and it was literally the first thing across my desk after finding the loo.
No way where we matching Danfoss etc who were trying to buy the business but I also didn’t want to lose it - what to do.
Well those TRV4’s had service kits that sold in almost as large numbers and weren’t subject to competitive tender - they went up, the actual valves were reduced culminating in a status que - everyone happy.
We supplied BGas with thermostatic radiator valves (Drayton TRV4) and had done for years apparently, it was many many units with a significant chunk of my divisions turn over.
The contract was up for grabs by reverse tiered tenders and it was literally the first thing across my desk after finding the loo.
No way where we matching Danfoss etc who were trying to buy the business but I also didn’t want to lose it - what to do.
Well those TRV4’s had service kits that sold in almost as large numbers and weren’t subject to competitive tender - they went up, the actual valves were reduced culminating in a status que - everyone happy.
DSLiverpool said:
3 weeks in the job as Invensys (Schneider) HVAC Sales Director.
We supplied BGas with thermostatic radiator valves (Drayton TRV4) and had done for years apparently, it was many many units with a significant chunk of my divisions turn over.
The contract was up for grabs by reverse tiered tenders and it was literally the first thing across my desk after finding the loo.
No way where we matching Danfoss etc who were trying to buy the business but I also didn’t want to lose it - what to do.
Well those TRV4’s had service kits that sold in almost as large numbers and weren’t subject to competitive tender - they went up, the actual valves were reduced culminating in a status que - everyone happy.
Sometimes people think they have negotiated a good deal but the other party are more than likely getting a better deal or they wouldn't have signed to purchase or sell the commodity.We supplied BGas with thermostatic radiator valves (Drayton TRV4) and had done for years apparently, it was many many units with a significant chunk of my divisions turn over.
The contract was up for grabs by reverse tiered tenders and it was literally the first thing across my desk after finding the loo.
No way where we matching Danfoss etc who were trying to buy the business but I also didn’t want to lose it - what to do.
Well those TRV4’s had service kits that sold in almost as large numbers and weren’t subject to competitive tender - they went up, the actual valves were reduced culminating in a status que - everyone happy.
Being a Schneider Director DS you will know fine well that the good deal the buyer has got for the initial purchase more than always turns out to cost more once you factor in spare parts and engineer visits etc.
In my early days as a buyer I learned my lesson very early when I purchased my first big package with Schneider. Saved a good few bob on the package but what I and to be fair the procurement team at the time never realized that we would be paying top dollar for spare parts (ongoing framework for 10 years) and the 5K plus per day for a engineer to visit site for pre commissioning and commissioning activities, easily 100 plus days involved for each activity.
Bought £1million worth of stock from a competitor in administration for 11p in the pound. I put my offer in thinking there is no way i'll get that then got a call from the Administrators about a week later asking for proof of funds and within a couple of days the deal was done.
Apparently there were much higher offers but no one could prove they had funds ready to go and were trying to work out logistics of uplifting the stock. I just hired a load of agency staff and a haulage firm did the rest. Happy days!
Apparently there were much higher offers but no one could prove they had funds ready to go and were trying to work out logistics of uplifting the stock. I just hired a load of agency staff and a haulage firm did the rest. Happy days!
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