THE RETAIL DOCTOR I BY BILLY CUTHRELL How to Negotiate, Part 1
M any years ago, as a way to obtain a media badge to attend my first NAMM show, I started a small drum magazine called The Drummers Jargon to get that media credential. In my second issue, I interviewed the late businessman Steve Johnson, founder and owner of 2112 Percussion located in Raleigh, North Carolina. Steve ran a great store and was a shrewd negotiator. Of all the topics we covered in the interview, Steve said one thing that really stood out, and I still remember it vividly. When I asked Steve what he would
I feel I came out better because I also freed myself from not only paying to have the retaining wall be built, but buying the materials and hiring and paying for labor to build it. Plus, my property value increased from the improvement. Go low if you’ve got nothing to lose. There’s nothing wrong with of- fering a low-ball offer to start. There’s a saying that goes, “You can go up but not down,” so starting low and letting the seller bring the price up can be a great negotiating tactic as long as the seller is willing to keep negotiating and not walk away from the low-ball offer. Once, I offered a drum manufacturer 30 cents on the dollar for a very large order of drums that they wanted to liquidate from their warehouse. They countered with 50 cent on the dollar, which was still a great deal, and I accepted. Remove emotions. Poor negotiators let emotions get the best of them. Emotions can cloud judgement and can never enter the picture. You have to separate your emo- tions from the negotiation pro- cess. Know that it sometimes takes more than one or two counter offers to get the result both parties want or need, and sometimes it may take days. Don’t be afraid to ask for time to think over an offer and come back to the negotiating table a day or two later. Calm, clear thinkers make better negotiators. In part two, we’ll look at some real-world negotiating examples and the outcomes. Until then, happy negotiating! MI Billy Cuthrell is an MI consultant and the former owner of Progressive Music Center.
do if he were not in the drum retail business he said, “I’d open a convenience store. There’s no negotiating in convenience stores. The cost of a gallon of gas or a Snickers bar is what it is. Nobody says, ‘I’ll give you 50 cents for $1 of gas,’ but a lot of people will haggle over the price of cymbal felts.” In the 26 years I operated my retail stores, the majority of my customers surprisingly didn’t negotiate much. Maybe that was because we had good prices to start with, but I surely haggled with my sales reps. I was constantly asking for lower prices, incentives and other perks when I placed orders. At its core, successful negotiating is the act of civ- illy reaching an agreement that’s acceptable to both parties. Done correctly, negotiating — or haggling as some folks call it — is not being argumentative, a
cheapskate, underhanded or attempting to rip off the other party. Sure, it might get a little loud and heated, but in the end you want to shake hands and be able to walk away knowing you can do business with that person again. Here’s a quick starters guide to help those less inclined to haggle:
“You don’t get what you don’t ask for.”
Speak up. A lot of folks don’t negotiate because they’re afraid they’ll say something to offend someone, seem cheap or just feel embarrassed. You don’t get what you don’t ask for. Do your due diligence. It has been said that the best way to win a negotiation is to be prepared to walk away however, I believe the best way to feel as though you “win” a negotiation is to do your homework really well. Know every single detail inside and out of what you’re negotiating. Know what you’re willing to accept. Several years ago, I sold a property to a developer. I agreed to a lesser sales price in exchange for the developer to install a retaining wall between the property I was selling him and a property I still owned right to next door. I would not accept any offer without the retaining wall being erected. The developer knew this and agreed. We both got great deals however,
30 I MUSIC INC. I JUNE 2024
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