As a business owner, you will encounter many different people in your dealings. Some unscrupulous people will try to get the better of you with dirty business tricks, trying to outwit you, out-negotiate you and try to minimize your profit. You have to be aware of some common low tricks in business and if you are alert, it won’t be easy to trick you. Here are some common dirty business tricks and how you can beat them to come out the winner:
Leaving at the last moment
The other company pretends to back out of the deal just before signing the deal. They can cite any reason, and this tactic is usually used to get you give more concessions on your rates. In a situation like this, instead of giving in, wait for some time till they call you again. Or call them after a month or so, but make it clear that you will not negotiate any further. If they want to work with you, they will have to make concessions for you now.
Misrepresenting the future growth
If you are making a deal with someone, be careful of very high growth projections. Sales growth will happen, but you should base your price or decision on the previous sales figures. Keep the option for payouts when you see accelerated growth happen and not before that.
Sometimes, the people you want to do business with will try to play mind games with you, and intimidate you, by teaming up against you. If you feel pressurized, request to negotiate with one person at one time, or ask a trusted person to join forces with you and help you negotiate.
You will be asked to give very high discounts due to the volume of work. But remember that though you may be getting a lot of business from the company, you still have to bear the infrastructure cost for all that work, as well as your time and energy. Working for them may mean you cannot take up other projects, so you just cannot give huge discounts.
Higher authority trick
To stall for time, the other company’s representative may say that they need to talk to the higher authority and refuse to let you know who he or she is either. Just put your foot down and refuse further talks until you get to talk with the decision maker.
Many smooth operators try this trick, and they will do it regardless of the price you quote. Just any price is too high for them, and shocks them! This is just another trick to get your price, because surely, you will not be quoting something which is way above the industry standards. If you know you have quoted a fair price, stick to your guns.
Setting fake deadlines
You will be pressurized to sign on the dotted line, and the client/customer will not give you time to check the documents carefully, citing any reason – they have an urgent deadline and so on. You should always ask for time to check everything thoroughly and then sign.
Hard luck stories
Whether they are true or false, they still should not influence you. Your client may try to get your rates down by telling you how little money they have – they will try to them the maximum, excellent quality work out of you and pay you the least!
Many people can fool you by agreeing to more or less your rate, but then they ask for endless extras, which leave you with no profit. Before signing the deal, you must set down the number of ‘extras’, you’d be giving, just to develop goodwill.
After a certain period of talk, you will notice that your client tries to avoid a decision, especially if they know that you have already spent a little in pitching your product to them. Keep your cool and understand that this is just another trick to force you to give more discounts.
Being aware of dirty business tricks will help you stay safe and come out a winner in your business dealings, and beat those who try to take unfair advantage of you.