Think about it for a moment – a giant, multinational global company that had a $20 million contract with us was unwilling to meet with me to even talk about a price reduction. My only reasonable response was to tell him that I was prepared to walk away. My reasoning was that true respect between partners is when they listen and talk to one another to reach a mutually rewarding outcome. If you don’t have that, then you are little more than a transaction on a balance sheet – easily replaced. – Yahya Abbas, Founder & CEO YaYA Food Corp.
I have had the good fortune of getting an advanced copy of a book that will be released to the public over the next few weeks. The title of the book is From Baghdad To Toronto: A Journey Of Values by one of the country’s top business executives.
As I turned each page in my cover-to-cover read, I found myself energized by the rich insights—business gold, if you will—from someone whose family business and values go back 700 years. I also found an unexpected and undeniable link between the underlying messages behind the stories and procurement and sales. In short, this book – whether intentionally or not, is the holy grail of procurement and sales wisdom – and, ultimately, business and life success.
The following excerpt is just one of the many great stories in a book that is rich with personal experiences and insight. What I am saying is that these stories are not conceptual but based on actual experiences and tangible outcomes.
The Real Thing
Coca-Cola has been a long-term partner, but the road with that relationship was not always smooth. For example, about two years ago, I called their VP asking to meet with them about our pricing – with rising costs, I needed to revisit our arrangement. When he somewhat dismissively asked me why I wanted to meet with him, I told him – we needed to talk about our pricing. He said, “and if we don’t do anything about the pricing, what will happen. I told him that as of tomorrow, we would no longer work with them.”
Think about it for a moment – a giant, multinational global company that had a $20 million contract with us was unwilling to meet with me to even talk about a price reduction. My only reasonable response was to tell him that I was prepared to walk away. My reasoning was that true respect between partners is when they listen and talk to one another to reach a mutually rewarding outcome. If you don’t have that, then you are little more than a transaction on a balance sheet – easily replaced.
Remember what I have been saying throughout this book – you must strive to offer a better product at a fair price than what is currently available. In other words, offer your customers better value than they can get anywhere else. That said, your premium value has a cost in more than just dollars – it is called mutual respect.
When I called the VP from Coca-Cola to discuss the need to revisit our pricing arrangement, he should have said, thank you for reaching out to me; let’s get together because you are a valued partner. But, instead of saying I want to understand the challenges you are facing to see how we can work together to address them, he questioned why we should meet at all. He didn’t even want to talk about it.
Remember, doing business is a two-way street in which each partner’s contribution must be mutually rewarding and beneficial beyond a financial transaction. If you are only a partner with no partnership, then you shouldn’t be working with the other party
This belief is the epitome of not only respect but a reflection of the shared values that produce the right outcome – mutual success.
Another important lesson here is that your view of money and the perceived power it brings is a potential trap that can undermine your business, relationships, and ultimate success.
Steve Stavro’s company thought that because they would be a large account for me, they could always show up hours late for a meeting. Conversely, the Coca-Cola VP may have thought they didn’t have to revisit pricing because they were a big company, and I would simply accept it.
I mention the above because how many business owners would accept this kind of treatment or do business with someone who did not respect the relationship as much as they should? I am not only talking about their respecting you, but you having respect for yourself. Self-respect is the great equalizer in any business dealings, and having self-respect is personal – which is why business is personal.
What happened with Coca-Cola? The President heard about my call with the VP and went crazy. I received a call back asking what happened, and I told them. The VP then called me back and asked if I would meet with him for coffee. When we met, he apologized for how he treated me and how dismissive he had been regarding my price concerns. We are still doing business to this day, successfully navigating the challenges we both faced during the pandemic.
As soon as the book is released I will let you know so you can get a copy.
30
Procurement Insights
What is the “one thing” all successful negotiators know
Posted on May 3, 2024
0
Think about it for a moment – a giant, multinational global company that had a $20 million contract with us was unwilling to meet with me to even talk about a price reduction. My only reasonable response was to tell him that I was prepared to walk away. My reasoning was that true respect between partners is when they listen and talk to one another to reach a mutually rewarding outcome. If you don’t have that, then you are little more than a transaction on a balance sheet – easily replaced. – Yahya Abbas, Founder & CEO YaYA Food Corp.
I have had the good fortune of getting an advanced copy of a book that will be released to the public over the next few weeks. The title of the book is From Baghdad To Toronto: A Journey Of Values by one of the country’s top business executives.
As I turned each page in my cover-to-cover read, I found myself energized by the rich insights—business gold, if you will—from someone whose family business and values go back 700 years. I also found an unexpected and undeniable link between the underlying messages behind the stories and procurement and sales. In short, this book – whether intentionally or not, is the holy grail of procurement and sales wisdom – and, ultimately, business and life success.
The following excerpt is just one of the many great stories in a book that is rich with personal experiences and insight. What I am saying is that these stories are not conceptual but based on actual experiences and tangible outcomes.
The Real Thing
Coca-Cola has been a long-term partner, but the road with that relationship was not always smooth. For example, about two years ago, I called their VP asking to meet with them about our pricing – with rising costs, I needed to revisit our arrangement. When he somewhat dismissively asked me why I wanted to meet with him, I told him – we needed to talk about our pricing. He said, “and if we don’t do anything about the pricing, what will happen. I told him that as of tomorrow, we would no longer work with them.”
Think about it for a moment – a giant, multinational global company that had a $20 million contract with us was unwilling to meet with me to even talk about a price reduction. My only reasonable response was to tell him that I was prepared to walk away. My reasoning was that true respect between partners is when they listen and talk to one another to reach a mutually rewarding outcome. If you don’t have that, then you are little more than a transaction on a balance sheet – easily replaced.
Remember what I have been saying throughout this book – you must strive to offer a better product at a fair price than what is currently available. In other words, offer your customers better value than they can get anywhere else. That said, your premium value has a cost in more than just dollars – it is called mutual respect.
When I called the VP from Coca-Cola to discuss the need to revisit our pricing arrangement, he should have said, thank you for reaching out to me; let’s get together because you are a valued partner. But, instead of saying I want to understand the challenges you are facing to see how we can work together to address them, he questioned why we should meet at all. He didn’t even want to talk about it.
Remember, doing business is a two-way street in which each partner’s contribution must be mutually rewarding and beneficial beyond a financial transaction. If you are only a partner with no partnership, then you shouldn’t be working with the other party
This belief is the epitome of not only respect but a reflection of the shared values that produce the right outcome – mutual success.
Another important lesson here is that your view of money and the perceived power it brings is a potential trap that can undermine your business, relationships, and ultimate success.
Steve Stavro’s company thought that because they would be a large account for me, they could always show up hours late for a meeting. Conversely, the Coca-Cola VP may have thought they didn’t have to revisit pricing because they were a big company, and I would simply accept it.
I mention the above because how many business owners would accept this kind of treatment or do business with someone who did not respect the relationship as much as they should? I am not only talking about their respecting you, but you having respect for yourself. Self-respect is the great equalizer in any business dealings, and having self-respect is personal – which is why business is personal.
What happened with Coca-Cola? The President heard about my call with the VP and went crazy. I received a call back asking what happened, and I told them. The VP then called me back and asked if I would meet with him for coffee. When we met, he apologized for how he treated me and how dismissive he had been regarding my price concerns. We are still doing business to this day, successfully navigating the challenges we both faced during the pandemic.
As soon as the book is released I will let you know so you can get a copy.
30
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