August 8, 2013

Questioning first appearances

There were the two proposals on the table. “Could these people be communicating with each other?” asked me the businessman sitting across from me. “I don’t think so,” I said. “They are two companies, which have no relationship with each other, in different sectors and in different countries.” He continued: “How is it possible that they have quoted the same price?” “Although their proposals show the same price, in reality they are not the same,” I said. “The payment terms are very different. Anyway, we are just at the initial stage.”

My client and I were going through the first proposals we had received concerning the sale of his company. We know that some companies prepare their first proposals with a relatively low price and then try to increase this price according to the developments. Therefore, more than the level of the price in the first proposals what is important for us is that a proposal is received.

Like in all other projects also in this one we told to the companies that had sent us a proposal that they have two options: “Either you will shortly receive from us a letter thanking you or you will revise your proposal.”

To cut it short… when we reached the final stage, there was a difference of 40% between the prices of these two companies.

Just like our forefathers say, “First appearances can be deceiving”… :-)

The oldie of the week: Chubby Checker – Let’s Twist Again (1961)

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