Where do you find that most business deals get done?
In the office or on the golf course? At a luncheon or dinner? At a social event? At a networking function?
Please think about this question in terms of geography and demographics, and how traditional business models may have evolved in the past few years.
Thank you for your feedback and responses!
Good Answers (4)
David G
CEO/Snr Sales type for startups, turnarounds, innovator, Mentor, coach, strategist, lateral thinker and change agent.
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Business deals go through a period of escalation from "we'll talk about it", we'll test it, we'll agree on terms to "we'll do it".
The ticket size of the deal frequently determines the length of time involved, the number of people involved and hence the places/venues where discussions may take place.
Smaller ticket deals generally happen at point of sale. You are walking about the grocery store and decide to buy a candy bar. Pay for it and deal done.
However, when big multinational Co "A" is trying to sell $50mill of kit to big multinational Co "B", then a lot of folks from both sides need to talk and work through to making it happen.
Moreover, different levels of execs tend to pair off and have their exclusive and specifically detailed discussions. The futher up the food chain one goes the more the execs will not be expert in anything with tight details. So typically a more causal and relaxed venue is usually chosen for chin wagging.
The execs at the apex will have reached their positions though relationships and typically like the idea of "sizing up" the other CEO.
So they go to the local country club for a freindly pissing contest.
Golf meetings or arrangements for a "hostess" are typically at the top of the decision making food chain and some heavyweight deals get done while swinging the irons and in the golf clubhouse ( with free flowing jungle juice) thereafter.
As the business elites are selected from a narrow genetic pool the habits have not really changed that much over the last 30 years and I suspect go back even further.
As the execs further down the ladder come from more diverse backgrounds they are more susceptible to fads and flavour of the month methods. The power breakfast and so on being among the transient styles.
Suggested pecking order;
Breakfast, Lets get the details.
Lunch, We are still thinking about it.
Dinner, Things are warming up.
Ticket to Football, We play in the big league dude.
Weekend lunch/Dinner, Its almost in the bag.
Country club, Lets all feel good about this.
Golf , All over bar the shouting
"Hostess", We own ya'.
I don't think it is as much about venue or geography as it is about where people of confidence and an earnest desire to leverage for mutual benefit might gather. That could just as likely be between a loose foursome on the golf course as it could be between a group of rivals having lunch at an industry event. From my experience, deals most likely come together when trust is up and over-guarded behavior is down. I've found that networking events are fine for quick touches and some early assessments, lunches are nice for sorting out broad strokes, dinners are great for deeper bonding and trust-building, but that lots of this happens through less-traditional means today as well, including web-conferencing, network introductions like this one, simple email exchanges and so on. Geography and demography? That's certain to generate a myriad of variations, but I stand by my general overview.
Jeffrey S
Chief Technology Officer at Trekk Cross-Media
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Amazingly, many of our business deals are done via web-conferencing. Time is so short, I find it is very difficult to invite people out for lunch let alone to go golfing.
The only exception is when meeting people at trade shows. Then, there is time after hours to socialize and have dinner or enjoy some entertainment.
Geography is no longer a consideration and time zones are just that. It is important to meet face to face at some point, but many many deals are done electronically and without a physical handshake.
The biggest difference after distance or location not being a factor, speed is an ever increasingly important factor. The speed of business continues to accelerate.
James S
Vice President of Business Development at Olympus Futures
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I would say that in a informal capacity where two parties can relax and the buyer can get to know the seller and the seller is selling himself and showing that he/she is a person and has the buyer's best interests in mind. My grandfather always told me the best way to get business done was the 5 martini lunch (lol).
More Answers (7)
Octavio B
Partner and COO at Talaentia
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Hi David,
Any activity typical of social networking as enjoying a golf game, a trade show or sharing a lunch or dinner is potentially an opportunity to get most business deals done.
When the interactions with the interested parties are local and require from living presence there is no better way to create a nice environment to get closed business deals that sharing a delicious and relaxed lunch or dinner.
When physical presence is not possible due to geographic dispersion any technological approach that provides the possibility of observing corporal expression as a videoconference is preferred.
I hope this helps you.
Octavio
I have been able to close deals in multiple venues, such as football stadiums, conferences, offices, nice restaurants, cheap grills, and yes even on a golf course. Although in all cases, I do not believe the "where" closed the deal.
The "where" may have been part of a relationship building activity or it may have simply been the convenient place to meet.
Relationships close deals not the entertainment and free stuff a sales person throws at a potential customer. Now don't get me wrong, often entertainment and the "where" are involved in building the relationships leading to deals being done, but typically, they do not force a debt upon a customer to do business with you.
Relationships, respect, and trust drive the closing of your deals.
George A
Director of Training at Anderson & Anderson, Executive Coaching/Anger Management
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Since my small business is actually international, most of my deals are made through a combination of phone and emails.
George Anderson, MSW, BCD, CAMF
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Mark N
Experienced Transportation Executive and Hotelier
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Business deals get done when relationships are established. I dont golf but have found the right type of pubs is a good place to hunt if you have the ability to start out conversations and then work then through to obtaining a business opportunity. I'm in HKG so the expat community here is sizeable and prior to that was in Bangkok & Singapore where the same model works. I have found that AMCHAM, Sundowners only open the possibility to organise a meal or drink in a non office location outside of these network forums. Its simplicity itself u need to develop a personal relationship before anything else otherwise its quoting for the sake of quoting. Obviosuly this may be a little different in USA
rgds Mark
James P
Professional coffee drinker and joiner of 'dots', introducing people with challenges to people that can take them away
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Whilst all the above answers are valid they all lead into one core element, they get done when the client trusts you to some degree and in an environment they feel comfortable in.
In they golf its a a golf course, if they are work a holics in the office, drinker in the pub, most of mine in coffee shops you get the idea.
It is all around making the client comfortable, relaxed, trusting you to do as you say you will do and the deals will follow.
James
Grant P
Owner, Interactive Media Publishing
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I couldn’t pass this one up. As a small business owner that has never held a club (What the heck is the difference between a wood and an iron?) I focus on what I can do for the other person. I build a relationship by getting to know the person, their business, and what I can do to be of service to them. I also do not travel often and find that I can close deals at a distance quite successfully. It takes time, effort, and creativity to close. I seek out problems, offer solutions and don’t charge for my initial work with a client. If I have nothing to offer I say so. I work hard to sort out prospects that have real problems, real budgets, and know they need assistance. Often what they require and their initial definition of their requirements differ substantially. I do take clients to dinner, but that is only after we have established a relationship, and not for the purpose of closing. I feel that if I offer a valuable service then I will be able to close against a competitor even one who can tell the difference between wood and iron.
I agree w/ the main point shared by many of the previous posts ... relationships. It's all about know you, like you and trust you. The focus should be how to develop mutual beneficial relationships. There is no secret avenue to close more business ie: food, events, etc.
