Currency Conversion for Negotiators

Want a creative way to compare two deals, or get the best of both worlds between them? Try “converting” the currency of success in one issue, into the currency of success for another.

Step out of your shoes for a moment, and into the world of a budding cafe owner, seeking to buy a pre-established business. You’ve frequented Cafe Jupiter for a few years now, and their desserts are out of this world… but they’re selling for a cool $5,000,000 price tag and you’re just not sure they’re worth the money.

Meanwhile, Deli Deluxe is selling down the road for just $1,000,000, but their decor needs heavy refurbishment and you just don’t find yourself losing your mind over their chocolate mousse like you would at Cafe Jupiter. How are you ever going to make this decision?

A possible solution might have already struck your mind — you could potentially snap up Deli Deluxe for the lower price tag, and use the $4,000,000 you saved to refurbish the place and hire better (or additional) chefs to bring the quality of the dessert up to scratch. If you worked the numbers, you might be able to end up with a higher quality establishment than either of the two, for a lower cost than Cafe Jupiter wanted to extort from you.

This kind of thinking can also be applied to non-monetary issues. If you are deciding between two book publishers and trying to find the right fit for your groundbreaking political manifesto, Gary’s Great Reads might only be able to offer you mediocre editing services, but give you more time to complete the book before it has to go to market. On the other hand, Yohan’s Books would provide decent editing for you, but really wants to rush you to complete the book as soon as possible.

A creative solution could be to use some of the time afforded to you by Gary’s Great Reads to either edit the book yourself, or work a side job to afford better editing services elsewhere. This way, you might end up with both more free time than Yohan could offer you, and better editing than Gary could offer you; not quite the best of both worlds, but certainly better than the deals that appeared to be on the table at first sight.

When working a deal with multiple currencies of success, keep an eye out for avenues to convert one into the other. It can’t hurt, and you may very well come out the other side a lot richer.

2018-11-05T19:16:47+00:00 Tags: |
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