How many times have you seen this – you present a proposal to one of your bank’s potential customers and you go back and forth on a particular term or set of terms. For loans, the discussion is often over amount, rate, term, amortization or guarantees. For deposits, it is often over fees, services or rates. More than 60% of the cases that we have observed, the seasoned business development officer bargains when they should be negotiating. Worse yet, they don’t even know the difference, and as a result, they lack a major tool in relationship development.
There is an opening scene in Sharknado where an Eastern European fisherman and an Asian businessman are on a boat negotiating the classic cliché-filled shady business transaction. Negotiations are over in about 10 seconds, which is good because it is right before a shark washes up on the deck and starts eating people. Other than how fast these negotiations concluded, the rest of the movie was pretty realistic.