Lessons from the master

Let me introduce you to a good friend of mine, Khaled Ismail, Corporate Brand Director at Tetra Pak.  Last night we were enjoying the sights of Shanghai's famous waterfront - The Bund - when Khaled came across a street vendor selling come cute blobby toys (a ball of water in rubber that squashed itself when thrown and then gradually unsticks and reforms in an amusing manner).
Khaled decides to buy 3 for his children and then tells me to observe how to bargain.

Khaled:  How Much
Street Vendor: 10 Yuan each

Khaled: I'll take these 3 for 10 Yuan
Street Vendor: 10 Yuan each?
Khaed: No 10 Yuan for all 3
Street Vendor:  %**&£$$!!

At which point Khaled walks away.  Inevitably the vendor chases after him and Khaled returns reluctantly.

Street Vendor: OK I'll sell you 3 for 20 Yuan
Khaled:  No I'll tell you what I'm going to pay and the price is going down. 6 Yuan for all 3.

Khaled then walks again - he virtually runs along the pier.  Of course the vendor chases after him and sells him 3 at just 2 Yuan each.

We stroll on further and Khaled explains the golden rule. 

"You have to be prepared to walk away at any point in the negotiation.  He knew I wanted them, but he also knew that only I had the choice to walk away - so the onus was on him.   Effectively he ended up bartering with himself."

As we returned along the walkway we re-passed the street vendor who was selling some more toys at 10 Yuan.  

Quick as a flash Khaled sat down beside him and started offering the 3 he had just bought at the knock-down price of 5 Yuan each.  Fortunately for Khaled's kids (and the hapless vendor) our car turned up to whisk him away to the airport. But not before he got a round of applause from an assembled crowd of Chinese celebrating his trading skills.

I suddenly had a renewed respect (and no little sympathy) for my colleagues in simply-experience who every quarter have to re-negotiate contracts with Tetra Pak.

Marc