With each chapter, Sun
Tzu is moving us from pure perspective of theory to the gritty world of
tactics. Today’s post begins a new chapter in which the Great General shares
his insights on the role of Statagem. Our commentators are stimulated to
discuss how one arrives at the economic terms which drive deal making and thus
business development. After all, if you want to make money, it helps to be
clever as well as lucky.
Comments on Sun Tzu’s The Art of
War, edited by Dick Cooledge, Comptche Press, 1927.
Sun Tzu: “If one is
being practical, the best thing is to win without fighting. It is better to
take the enemy’s country intact rather than shattered and laid waste. So too it
is better to take the opposing force intact than to destroy it. Fighting and
conquering does not constitute excellence in a general. Excellence is found
where a general can win without fighting.”
Raven: “Rather than ask what you
want, ask what the other fellow needs. If you are better off by giving it to
him, why not do that?”
Poor Richard: “When he prices his inventory, the prudent merchant calculates
his bottom line. That defines his low end. Then he thinks about how the
customer likely calculates their bottom line and tries to calculate theirs. If
the customer’s is greater or equal to his, he then estimates how high the
customer can go and still be better off. That defines the high end. If you want
to do lots of deals as quickly as possible, define the range, get into it, ask
for the high side and settle for any offer that is still in it. Always ask for
the high end first. Never settle below the low end.”
© Phyl Speser, January
30, 2013
Comments on Sun Tzu’s The Art of
War, edited by Dick Cooledge, Comptche Press, 1927.
Sun Tzu: “By this
simple principle, we can rank strategies. It is best to foil the enemy’s plans
and dishearten them before they have momentum. Next best strategy is to disrupt
the enemy from marshalling their forces. The third best strategy is to engage
the enemy where you can maneuver to your for advantage. The worst strategy is
to attack where the enemy is entrenched and strong,
Raven: “When you walk in a
restaurant, if you know what you want and think you can get it, you can ask for
it. If you know what you want and don’t think you can get it, you can settle
for whatever on the menu that you like. If there is nothing on the menu that
you like, you can still ask the waiter for a recommendation. The problem is you may not like the recommendation.
So before you ask, it is useful to know what you order if the recommendation
doesn’t sound tasty.”
Poor Richard: “First figure the cash flow requirements, then you can figure
out the terms that allow you to get it. Once you have terms that let you get
the cash flow, you figure out the terms that can keep you from losing it. Once
you have those, you can think about the enforcement mechanisms. It’s always
better if they have to sue you rather than you them if things do not work out.
The plaintiff carries the burden of proof as well and still has to collect even
if they win. If someone is going to get discouraged and quit because it is a
hassle, better it’s them.
© Phyl Speser, January
31, 2013