How to Negotiate Like an A-hole: Amazon Edition

91jQbQf8lTL._SL1500_In the book The Everything Store, Brad Stone takes an inside look at the rise of Jeff Bezos and Amazon. Bezos is notorious for his belief in the long term, which leads to the company sacrificing short-term profits to help fuel future growth. The company also has a maniacal focus on customer satisfaction, often at the expense of relationships with vendors, clients, and (sometimes) employees.

Stone reveals several anecdotes where these two factors meet to led to some ultra-shrewd business moves by Bezos and his team. Some examples:

The Kindle

When wrangling publishers to offer their books for the Kindle, Amazon purposefully never mentioned price. The publishers found out with the rest of the world at the Kindle launch event. From the book:

Among the gathered publishing execs at the Kindle press conference, there was confusion. Was the $9.99 price a promotional discount for the launch?

Finally the grim reality set in and publishing executives kicked themselves for their own gullibility

[One publishing executive said,] “If I could rewrite history I would have said, ‘Thanks so much, I love the idea of the Kindle, but let’s have an agreement that says you will not sell below the cost.’ I feel like I was asleep at the tiller.”

The new price made digital cheaper than paperback, which made customers buy more books, which made the publishers more dependent on Amazon. The company purposefully capitalized on the publishers lack of understanding about the new medium to provide the best value and make the book industry further reliant on Amazon. 

UPS

In 2002, Amazon’s contract with UPS was up for renewal and the shipping company was ready to play hardball. Amazon was in a weak negotiating position. It wasn’t using FedEx at all, and the Postal Service was barred from negotiating rates. Six months before negotiating, Amazon moved to improve its positioning:

Over the course of six months [Amazon employee Bruce] Jones traveled to FedEx’s headquarters in Memphis, integrating their systems and quietly ratcheting up the volume of packages. Amazon also increased its shipment injections with the U.S. Postal Service: company employees drove Amazon’s trucks to the post office and inserted packages directly into the flow of federal mail.

Then, when UPS refused to lower their rates, Amazon “flipped the switch” and stopped using UPS cold turkey:

“In twelve hours they went from millions of pieces a day to a couple a day,” says Jones.

UPS execs caved and gave Amazon discounted rates.

Toys “R” Us

In its early days Amazon would partner with various retailers to keep its site stocked with items from markets it didn’t understand or couldn’t fit in its warehouses. One of the company’s earliest partners was Toys “R” Us, and Bezos ratcheted up the theatrics:

The negotiations were, as was often the case when Jeff Bezos was involved, long and, according to Jon Foster, “excruciating.” When both teams met for the first time, Bezos made a big show of keeping once chair open at the conference-room table, “for the customer,” he explained.

They two companies ended up striking a deal after being at an impasse for months.

While Bezos and company weren’t so kind to their negotiating partners, no one can argue with the results. You can buy the book here.

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Skip Monday Blues with Sort-Your-Life-Out Sundays

Watch by Julien Deveaux from The Noun Project

Watch by Julien Deveaux from The Noun Project

When asked in an interview about how he structures his work week, Jack Dorsey (co-founder of Twitter and Square) said: “Sunday is [for] reflections, feedback, strategy and getting ready for the rest of the week.”

Laura Vanderkam, author of “What the Most Successful People Do on the Weekend,” observed that weekends, especially Sundays, are crucial when it comes to getting clear and prepared for the coming week. She’s dubbed the process of recalibrating yourself on the sabbath as “Sort-Your-Life-Out-Sunday.”

[On Sunday,] do something you love Monday to Friday. When the conditions of your job are right, you can start the week excited about it. You like the work for its own sake and hence, it isn’t a cause of anxiety.

But another, perhaps more practical, idea is to schedule something fun for Sunday nights. Get together for a game night with friends. Have people over for dinner. Find an adult soccer league that plays on Sunday nights. Go to religious services. Volunteer with your family somewhere. In nice weather when it stays light late, go for a long bike ride or walk. The key is to figure out something you’d really enjoy doing, then plan it ahead of time.

Think of it as performing a more comprehensive and personal version David Allen’s infamous weekly review. Sort your life out on Sunday, and you’ll hit Monday ready to go!

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Giveaway! Win an Advance Copy of 99U’s New Book: “Make Your Mark”

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Due out in less than a month, Make Your Mark is the third installment in the 99U book series—and the first to tackle the subject of leading a creative business.

These days an MFA is as likely to be leading a business as an MBA. More designers, artists, journalists, and creatives of all kinds are stepping up to the plate and anointing themselves entrepreneurs. The thing is: Creatives don’t work like everyone else. We’re restless and innovative and neurotic and full of ideas and energy. And we want to make stuff. But how does that “maker mentality” sync up with leading a business?

That’s what Make Your Mark is all about. We made a business book for creatives by creatives. It collects 21 essays and interviews from leading creative minds at businesses big and small, like Warby Parker, Google X, Facebook, DODOcase, Sugru, Contently, and many more.

How to Enter the Giveaway:

Make Your Mark is not just about how to run any old business. It’s about how to run a creative business with purpose, meaning, and IMPACT. So, for our giveaway, we’re asking you to take the “Maker’s Pledge” to dedicate your business to making something that matters.

Just tweet out the Maker’s Pledge below (make sure to follow us), and we’ll give a free copy of Make Your Mark to the first 50 tweets.

“I, _____, take the Maker’s Pledge to solve real problems and make something that matters. www.99u.com/book #makeyourmark”

Enter the giveaway –>

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Make Your Mark will be available on Nov 18th. Pre-order the book now.

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How Must-Do Thinking Can Hold Us Back

Designed by Silly Lili for the Noun Project

Designed by Silly Lili for the Noun Project

We can’t always do what we want. But for our businesses, we should build, start, and create things that we’re truly passionate about. We tend to be more successful when we’re working on projects that electrify us.

When it comes to growing our businesses, we may want to step back into the shoes of our young selves when we approach our work, suggests John Petersen, CEO of Firehawk Creative. In an article for We Work magazine, he writes:

 Kids do what they want to do. If you force them to do something, they put in as little effort as possible to get to a time when they can do what they want.

He also reminds us that:

 Kids aren’t trying to come up with some scheme where they never have to work again. They just want to do their thing.

Yes, we need to pay our bills. Yes, there’s always laundry to take care of. And yes, responsibilities only seem to grow as we get older. But building something in hopes that you’ll be Zuckerberg-rich will more than likely leave you anxious and frustrated. Instead, focus on building the best, most authentic business you can.

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Yves Behar: Trade Briefs for Relationships

Briefly from Bassett & Partners on Vimeo.

Yves Behar, CEO of Fuseproject, doesn’t believe in design briefs. In the film Briefly, he explains that far more can be learned through client relationships:

I don’t believe in briefs; I believe in relationships. The difference between a brief and a relationship is a brief can be anonymous. And I’ve tended over the last fifteen to twenty years to really work with people who give you a really deep sense of where it is they want to go, what it is that they are dreaming about. And that, in turn, has informed us on the projects more than any brief has ever done so.

Initial discussions should provide not only the vision for the project, but the aspirations of the company. Instead of anonymously sending out briefs, make it a collaborative thing: the brief will naturally evolve out of these client conversations. With continued dialogue, you build the trust you need to really question ideas and find innovation. Use the brief as a creative tool to open up dialogue with your clients, negotiate easier, and get to the heart of the problem.

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The Zero Notification Challenge

Bell by Sebastian Langer from The Noun Project

Bell by Sebastian Langer from The Noun Project

Ping!…Email.
Ping!…Tweet.
Ping!…iMessage.

Do notifications impact your workflow?

Co-founder and CEO of Buffer, Joel Gascoigne, undertook an experiment in which he disabled all notifications on his phone. Not only did he regain his focus, he was also able to convert his workflow from reactionary to proactive:

It is now completely up to me when I choose to check my email, Twitter, Facebook, etc. I have no excuse that a notification came in. If I check it too frequently and find myself procrastinating, it is only my fault: I went out of my way to go and look.

Focus isn’t a magic ability. It’s simply a function of limiting the number of options you give yourself for procrastinating. 99U challenges you to turn off all notifications for a week, and let us know how it goes below.

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Are You Inspired or a Copycat?

User designed by Wilson Joseph from the Noun Project

User designed by Wilson Joseph from the Noun Project

It’s important to be aware of inspiration that simply influences us versus inspiration that turns us into a copycat. Knowing the difference can help turn us into the type of creative worker we strive to be. As Evernote designer Joshua Taylor explains in this interview over at the InVision blog:

Researching and seeing what others are doing is important. I try not to do that too much though because I think there’s a subconscious tendency to copy as soon as you start looking at everyone else’s stuff. My advice is that if you are going to look at others’ work, look at a ton of them so that there’s enough influences and you can’t distinguish between them. Constantly looking at other people’s work has a huge impact on who you are…We are all products of our environments, so surround yourself with great things.

The right inspiration, at the right time (and in the right amount), can be just what we need to improve our own ideas and creative work. It’s when we catch ourselves looking for inspiration as a way to solve the task at hand or complete the work we’re doing that we know we’ve stumbled into possible copycat territory.

Instead, we must strive to constantly surround ourselves with a lot of varied and high caliber work.

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