He Won’t Negotiate

From: Remo, Perugia, Italy

Question: I have started a negotiation with an Export Manager from a local company. I have their list of prices for the products my company wishes to export to an Eastern European country.

The local company has no presence in that country. At first they appeared very interested in that market. I took a business trip to the Eastern European country and when I requested some samples to bring with me, the Export Manager of the local company ‘had some problems’ with giving me samples. I finally bought samples of their products from an local shop and took them on the business trip. I've returned with some good results and I wanted to conclude an agreement with the export manager and his company.

When I requested a meeting, the Export Manager fixed the date and hour. I was there at the appointed time, but he was not. After half an hour one of his colleagues came and said that my man will arrive in one hour. I answered that I will return in an hour and when I did return the Export Manager was again occupied and after approximately 20 minutes he came and announced me he is in a meeting and he will return in a while.

I waited for 10 minutes more and then, because my companion (from my company) became furious, we left. After 2 minutes the Export Manager called me on my mobile telephone but I was unable to respond because the phone was turned off. From that moment two weeks ago, I have had no sign from the export manager.

I wish to have your opinion on my behavior and on the way to proceed in my negotiation with his company. I found out that the Export Manager is paid with a percent of the sales and that he has no alternative to my proposal (except that of not selling in that market for the moment because he has no contact there).

I could have similar products from other producers but — not from my city. What do you believe I should do?

Response: In your description of what has taken place you do not indicate whether or how you have attempted to re-start negotiations with the export manager. If you have not communicated with him, you should send him an email or a letter indicating you would like to do business with his company and that you wish the original meeting had gone forward as planned. In addition you should ask him to call you to set up a new meeting.

The Export Manager’s failure to warn you that he would have trouble meeting you even though he had designated the time of the meeting is extremely bad manners. One of the questions in my mind is whether this indicates that he is a rude person — or simply someone who is not skilled at managing his time. If he is rude, you have to consider whether you want to have a business relationship with someone who misbehaves towards business contacts. If he is a lousy manager, you need to ask whether you can feel confident that he will fulfill any agreement he makes with you — and what consequences his poor management style might bring to your company.

One other thing that sounds a bit weird is his failure to give you samples. If you know anyone in your company — or others — who have done business with the Export Manager or his company, you should learn as much as you can. They may have a logical policy about samples — or there may be something about the way they do business that should make you happy that things have not gone forward.

If you have already attempted to organize a new meeting and if he hasn’t responded, you need to review the situation.

Your wisest course will be to assess the alternatives — investigate what negotiators call your BATNA (Best Alternative To a Negotiated Agreement). In this case you have told me that there are other producers (in other cities) who could provide similar products to the ones the Export Manager’s makes. While it may be more convenient to work with a local supplier, if you have the capacity to travel to the country where you want to sell the products, it seems logical to conclude that you can travel within your own country.

Thus it is probably worthwhile for you to learn more about alternative sources of the products now that you know there is a market for them in the Eastern European country. After all, you have found an opportunity to do business and it would be silly to discard the time and money you and your company invested in investigating the new market. In other words, you appear to have a strong BATNA.

You should take the following steps:

1. Learn more about the range of producers who can supply the goods you want to sell to the country in Eastern Europe. This includes learning about their products (quality, etc.), prices, reputation, capacity to deliver, and the other factors that will help you make the best choice.
2. Once you know more about your alternatives, you should talk with the ones that sound best so you can create a short list of preferred suppliers — including the Export Manager’s company if you are willing to do business with them.
3. If the Export Manager’s company is still an attractive possibility, you should send him an email — or a letter — indicating that you have determined the Eastern European country is likely to be a good market and that you have found there are other suppliers with whom you can do business — but that you prefer to do business with him. Give him a gently-stated deadline for your decision-making. You may want to indicate your company is pressuring you to get these products to the new market by a certain date — so that he does not feel the deadline is based on any personal issues.
4. You should meet with export managers from other producers so that you can determine where you will get the best business deal — both financially and in terms of dependability and a good relationship.

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