In today’s episode of The Startup Chat, Steli and Hiten talk about how not to make dumb mistakes under pressure.
It’s common in business to find ourselves in situations where we have to make our most important decisions under pressure. And this pressure could be as a result of a lack of time, emotional stress, or desperation. Most times, when we make decisions under pressure, it ends up being a bad decision.
In this episode, Steli and Hiten share their thoughts on why you shouldn’t make very important decisions under pressure, how to handle these kinds of situations why they arise and much more.
Time Stamped Show Notes:
00:00 About the topic of today’s episode
00:33 Why this topic was chosen.
03:01 Why you should never refer a client that thinking of switching to one that's successfully switched.
08:10 Why you shouldn’t give references when you don’t control the message.
08:30 Why you should never ever think or say the words “I’m gonna roll the dice”.
09:33 How to handle decision making under pressure.
10:25 How we all make mistakes.
11:30 Hiten’s opinion about why Steli’s friend made this particular mistake.
12:15 A big irony in this situation.
12:49 How not listening to an adviser could be a relationship killer.
3 Key Points:
You can’t stop people from doing stupid things.
Don't give references when you don’t control the message.
Never ever think or say the words “I’m gonna roll the dice”.
[0:00:00]Steli Efti: Hey everybody this is Steli Efti.
Hiten Shah: And this is Hiten Shah..
Steli Efti: And today on the startup chat, a little Steli Efti rant on how not to negotiate and how not to give references to prospects. All right-
Hiten Shah: Let's do it.
Steli Efti: So heres the deal Hiten, over the last two, three weeks, I've been helping a friend in a negotiation with a large customer that his company had, that was just going through the motions of currently considering to switch to a competitor right, so these guys were customers for them for a year, their renewal is coming up and so they are now thinking about switching to a larger competitor. My friend has tried to talk to them, visit them and kind of try to negotiate with them and figure out a way to keep them as customers and to convince them that his product at his company, his service is gonna be serving them much better than the competitor. Now, the competitor has gone through a lot of efforts to sway them and send over a huge team, rolled out the red carpet, you know, steaks, dinners at expensive restaurants, everything you could think of. My friend was not used to having to compete on that kind of very enterprise sales level, so he was surprised by that and he was also surprised that the customer was really appreciating the attention and time and care that that competitor was funneling their way and channeling their way. So throughout the entire time I've tried to give advice and give tips on how to help with the negotiation to keep the customer around. One really big thing was that switching to the competitor would take a long time in the transition, using the competitor would take a lot of money to integrate and customize and utilize that product. There were a lot of hidden cost that the competitor wasn't highlighting that I wanted my friend to make them aware of. In the final hour, one thing that happened a few days ago is, it looked really good, it looked like they came around and they wanted to stay with him, they did a bit of research, they listened to his pitch or his argument, they appreciated his increased effort and showing them that he really cared and his company cared about keeping him as a customer as much as the competitor cared about winning them. It started to look really,