Build in Some Negotiable Variables

When you have exhausted your list of current actual tradeables, ask yourself what other negotiable variables you could build in that you don't yet have. The answer lies in discovering what you could add to your product, service or offering, perhaps bundling it into a package and then peeling off certain non-essential layers as tradeable concessions.

Alternatively, you evaluate the tradeables and, if they are fairly low cost to you, add them as concessions that you can trade, in return for something else from your counterpart.

My main business is in training and consultancy and I regularly conduct strategic marketing reviews for small to medium-size companies. What I have done is to build in some negotiable variables. One of them is a helpline that gives qualified telephone back-up support to the implementation process of the plan produced.

Another variable is a health check at six-monthly intervals. I can build them into the original offer and then use them to trade. Or I can leave them out of the original offer and add them at the trading phase.

When I am buying, I am busy thinking about what negotiable variables I can conjure up for my potential suppliers. A good example of this comes from running seminars.

Most hotels have a so-called fixed rate - for full day only - for seminar rooms. I always ask them, 'What is your price for a full day?' They might say, '£800.' I say, 'I want it for a half-day only, I will be cleared out by 12 noon, I would like to book it for £350.' They usually splutter and mutter but I very rarely have to pay the full day rate even though that is printed policy.

I then turn to the tea and biscuits. I ask, 'How much for tea and biscuits?' They say, '£1.90 per person.' I say, 'I am running upwards of 100 seminars per year and most of your competitors will do just tea for £1 - can you better that, please?' A bit of trading then ensues, but I will not pay for the biscuits. That trading alone will save me or my sponsoring clients £5,000 or more per annum. Do that for 10 years and it has saved £50,000. I point out that fact to any reluctant conference manager and they are usually a little shocked. I don't think I have ever been refused.