Page 104 - Paulisms: Gold Nuggets for Small Business

under pressure. I knew he was really going to come back with another $90,000 on my offer, but I wanted a 120-day term to sell something else. I wrote down what he would come with: $10,000 off his original price but he’d crossed out 120 days and put ninety-day terms. That was the deal I had written on a drink coaster. The agent came back the next day with a worried look on her face. ‘He’s countered,’ she said.
‘I know and I know what he has counted at. Its written on that coaster on the table.’ And I handed her the coaster.
The agent screamed when she read the price and terms I’d written. Negotiate the terms. As long as the vendor gets their price. The thing is I had already worked out what price I wanted to pay and also the terms I needed to make it work, so I influenced the deal to settle on my terms. As it turns out, it was a great purchase, as timing was perfect before the market started to move.
New suppliers were fun: They would say, ‘I cannot give you that discount.’ I would reply, ‘I’m sorry that it doesn’t work on that discount, but it may do if you give me 30 days extra credit.’ They have their price, don’t have to give a discount and become flexible: deal done! I did this with one company that became our second biggest supplier and creditor. Some months they were invoicing us $300,000 a month. As I had negotiated an extra month’s credit, it was like having a $300,000 overdraft. One key thing here is that it was free.