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The Difference Between Negotiating, Bargaining and Haggling in Bangalore



Negotiating, Bargaining and Haggling in Bangalore

I am not good at bargaining. I was taught by my mom years ago to bargain well when she sent me grocery and produce shopping but after being in America for ages, those skills just wore off.

I think I try to do the win-win negotiation, but quite honestly that does not work in India. Its always someone wins and the other person negotiating loses. Most cases its NOT a negotiation, its just a bargaining. So what’s the difference – well let me explain.

1. Negotiating: I walked into a local car dealership with my cousin the other day. Good day to buy a new car. There are over 50+ models to choose from – very different from the last time we went car shopping in India – there were 3 models.

You either bought a Fiat (localized for India), an Ambassador (from Morris Minor) or a Suzuki (also localized). Well walking into the dealership was interesting in itself.  Before we had a chance to  acquaint  ourselves, there’s a nice lady that walks by to  “greet” us with a paper in her hand.

“Hi” she says with a half smile “Are you looking to buy a car”?

We nod in unison.

“Okay, here’s the price sheet. Please be seated, I’ll send you a sales person”.

Whoa! I thought, price sheet first. Wonder what Seth has to say about this.

The price sheet was pretty detailed, cost of the car, taxes, registration fees, insurance – all inclusive. There were 5 models of cars to choose from and about 4 types of cars in each model. From the basic (no power anything (including no power steering!) , no seat belts, manual shift and no AC) to the fully loaded (this still has no airbags, no car stereo – optional, no sun roof, etc).

We sat down and Rakesh came to greet us, “So, which car do you want to buy?”. My cousin says “Santro”.
“Okay, do you know which type of car?” he asks.
“What’s the difference?” I venture.
A more detailed explanation of the features ensures.

We finally settle on a model and type. Turns out the same prices are valid throughout Southern India for every dealer. The only difference is what options you can purchase. But wait, even with that the prices are set by Hyundai.

So putting my best negotiation face I say “Why dont you throw in the stereo for free?” expecting a tough, grueling session ahead.

“Okay” replies Rakesh, “If you want free stereo, the I can only give delivery in 2 weeks”.

“But we want the car tomorrow”, my cousin volunteers.

“Then no free stereo” he explains still smiling.

“Hmm, what about color” my cousin questions, “We want blue”.

“No problem we have that in stock” he replies, and before we can ask any further “does not matter which color you want, we have all in stock if you want delivery by tomorrow, without stereo”.

So much for negotiation.

I try the walk tactic “Well if we dont get stereo in the car and by tomorrow, we’ll go elsewhere”.

“Sure sir. Its your choice, but every dealer will give you the same price, same time of delivery and same options” says Rakesh, “Our difference is we are closest to your home. Would you rather drive another 1.5 hours to go elsewhere? In this traffic?”.

He has a point that man. Why buy a car and drive all around town? We are just buying it to park it at home are we not?

End of story. No more “negotiation”. Everything is set – you get a choice of delivery date in exchange for a free stereo.

I realize this post is already long and the bargain & haggling stories are kinda juicy so I’ll save those for another post.

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Creating Artificial Constraints as a Means to Innovation




Artificial Constraints

Many of the entrepreneurs I know have created new innovative startups thanks to real constraints they had. For example, I was hearing AirBnB’s Brian Chesky, on the Corner Office podcast and he mentioned that when he and his cofounder were trying to get some money to get started and the only way to keep afloat was to “rent” their air bed they had in their room. That, then led to Air Bed and Breakfast, which is now AirBnB.

This was a real constraint they had – no money to “eat” so they had to make it happen somehow.

I have heard of many stories of innovation where in the protagonists had real constraints of either financial, technology, supply, demand, economic, social or any number of other characteristics.

The interesting story that I have also recently heard of how Facebook has “pivoted” from being a desktop offering to getting a significant part of their revenue from mobile is how they were given the arbitrary constraint of only accessing Facebook via the mobile phone.

So there are ways that you can create “artificial” constraints to force innovation to happen.

Most larger companies and some smaller ones as well, have to constantly find ways to create artificial constraints – to find a way to innovate and be more be a pioneer.

While some constraints are good – lack of funds at the early stage for example and lack of resources, there are entrepreneurs that are stymied by these constraints and those that will find  a way to seek a path to go forward.

I think this is a great way for you to think about innovating in a new space. If you have constraints, find a way to use it to your advantage.

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The Great Mobile App Migration of March 2020




Mobile App Migration

Over the last few weeks as many in the world have been in lockdown, there has been a temporary “mobile app migration” happening. There are new apps downloaded and they replaced existing apps on the “home screen”.

While some of these apps are likely temporary use, for e.g. I have 6 “conferencing apps” – Zoom, Uber Conference, Webex, Google Hangouts, Blue Jeans and Goto Meeting. That is because of the many people I have conference calls with – each company seems to have chosen a different web conference solution.

Other apps seem like they will have staying power – Houseparty, for e.g. which has games, networking and video conferencing all built into one app to keep in touch with friends and relatives.


The apps that have moved away from my “home” screen, which I expect will come back once the crisis will be behind us include – Uber, Lyft and all the airline apps from Delta, Alaska and United.

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Perseverance with the Ability to Pivot on Data: 21 Traits We Look for in Entrepreneurs




Perseverance with the Ability to Pivot

There are 5 key inflection points I have noticed which makes founders question their startup, to either make a call to continue working on their startup, pivot to a new problem or quit their startup altogether.

It is at these points that you really get to know the startup founder and their hunger and drive to be successful. I don’t think I can characterize those that choose to quit as “losers” or “quitters” because of many extraneous circumstances, but there is a lot of value that most investors see in entrepreneurs who face an uphill part of their journey to come out on the other side more confident and stronger.

These five inflection points are:

  1. When you have to get the first customers to use and pay for the product you have built after you have “shipped” an alpha / beta / first version. Entrepreneurs quit because they have not found the product-market-fit – because the customer don’t care about the product, there is no market need, or the product is really poorly built, or a host of other reasons.
  2. When you have to start to raise the first external round of financing from people you are not familiar with at all. Entrepreneurs quit because while it is hard to get customers and hire people, it is much more harder to get a smaller set of investors to part with their money, if you do not have “traction”, or “the right management team” or a “killer product”.
  3. When you have to push to break even (financially) and sustain the company to path of being self sufficient. Entrepreneurs quit at this stage because they have now the ability to do multiple things at the same time – grow revenues and manage costs, and many of them like to do one but realize it is hard to do that without affecting the other. So, rather than feel stuck they decide to quit.
  4. When you have to scale and grow faster that the competition – which might mean to hire faster, to get more customers, to drive more sales, or to completely rethink their problem statement and devise new ways to grow faster. Entrepreneurs quit at this point because they are consumed by the magnitude of the problem. They overassess the impact the competition will have on their company, give them too much credit or focus way too much on the competitors, thereby driving their company to the ground.
  5. At any point in the journey, when the founders lose the passion, vision or the drive to succeed. Entrepreneurs quit a these points because they have challenges with their co founder, they don’t agree with the direction they have to take, or encounter the “grass is greener on the other side” syndrome.

While I have observed many entrepreneurs at these stages at  discrete points in time, I have also had the opportunity to observe some entrepreneurs in the continuum, and I am going to give you my observations on 3 of the many folks I have known, who, have quit.

Perseverance separates great entrepreneurs from good ones
Perseverance separates great entrepreneurs from good ones

One went back to college to finish his MBA after getting a running business to a point of near breakeven, another found the business much harder than he originally thought he would and got a job at a larger company and the third was just unable to have the drive to go past 11 “no’s”‘ from angel investors.

Over the last 8 years, if I look at my deeper interactions with over 90 entrepreneurs, who I would have spent at least 100+ hours each, I would say that of the 24 people that are not longer in their startup, the one thing that stands out among the ones that persevere is that it is not “passion” or “vision” at all.

It is the inherent belief that they are solving a problem that they believe is their “calling”. They also don’t believe that there is any other problem that’s worth solving as much, even though there may be easier ways to make money.

So most of my questions of entrepreneurs to test whether they will pivot or quit are around why they want to solve this problem (which I am looking to see if they know enough about in the first place) versus any other one.

The answer to that question is the best indicator I have found to be the difference between the pivots, the leavers and the rest.

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