Ann Summers chairman David Gold on negotiating skills [Video]
David Gold believes that patience and gall are essential when negotiating
Speaking exclusively to Startups in this video, Ann Summers owner and West Ham co-owner David Gold talks about the two elements that he believes are essential in any business negotiation.
The first element, according to Gold, is a “wonderful Jewish word” – chutzpah. Roughly translated, chutzpah means “extreme gall”, and Gold offers up an example. “You have to have extreme gall to step up and say ‘I can’t pay your asking price of £10,000, but I’d be happy to give you £2,000,” he explains. “It’s outrageous – but that’s what chutzpah is.”
As the serial entrepreneur explains, by displaying chutzpah, you immediately change the context of the negotiation, getting the other party in the frame of mind that they are not going to get their asking price – but will have to settle for a lot less. “If he wants to make this sale, he’s got to think of the lowest figure he’ll settle for in his mind as opposed to the highest,” Gold explains.
The other quality successful entrepreneurs must display in negotiation, according to Gold, is patience. “You might not to the deal that day – it might take weeks,” explains the Ann Summers owner. “Patience is an important requirement.”