Wednesday, March 18, 2015

Notes for an Entrepreneur - Partnering

I was once in negotiations with a party who seemed to be trying very hard to convince me that they wished to find a partner not a vendor. At the same time, this party was pushing for a quote that was clearly below my cost price. I told them as much and explained my cost structure. I also suggested that I would help them find another vendor who might have a lower cost structure than mine. Paradoxically, they were unwilling to consider another vendor; they insisted they wanted to partner with me but that I had to drop my quote.

After I got tired of running around in circles, I said half-jokingly, "I do not really wish to partner with you. I wish to be paid on time at a rate that I find profitable." I added that if they insisted on partnering with me, I would like them to share their cost structure with the same transparency that I had and be willing to add in a clause that included an up-side for me as well. That this idea was unpalatable to them was a signal to walk away from the negotiating table. I am so glad I did.

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