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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5-Second DIY: Notebook Index

Photo by Adam Akhtar of highfivehq.com

Photo by Adam Akhtar of highfivehq.com

Adam Akhtar of Highfive has a great—albeit surprisingly simple—tip to add visual tags to your notebook or moleskin for organizing your notes. All it takes is your notebook and a pen:

The back of your notebook will act like a tag list or index. Every time you create a new entry at the front of the book you’re going to “tag” it [in the back]…

Now you’d go back to the first page where the [note] is and on the exact same line as the…label you just wrote you’d make a little mark on the right edge. You’d make this mark so that even when the notepad was closed the mark would be visible. After repeating this for various [notes] you’d now have various tags visible on the notebooks edge.

The process is very easy to use, and can be paired with other “hacks” for an added organizational boost (like using different colors for different topics). If you still use a physical notebook, this is one approach you’re definitely going to want to consider.

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Follow Your “Why,” Not Your “What”

person-question

Question designed by Jessica Lock from the Noun Project

Finding purpose in your work not only benefits your life, but helps differentiate you from others in your industry. Sunny Bonnell, co-founder and creative director of Motto, explains: 

Figure out what you stand for and what you believe in, and use that as your point of difference. In a crowd of designers, how will you stand apart? If you’re guilty of leading with what you do, start with why you do it and articulate that on your materials, website and social channels. Find out where your talents and values meet, and use that to leverage the power of your purpose.

Your “why” is a powerful driving force for your life and career. It provides a common goal that directs your actions and provides the dedication to get there. In addition, passion is contagious. Your excitement will excite others who will want to get involved in what you do. As leadership expert Simon Sinek says, “people don’t buy what you do; they buy why you do it.”

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Share Your Ideas While You Build Them, Not After

talking

Talking designed by Klara Zalokar from the Noun Project

 The sooner you share your ideas, the sooner you will find a solution that works for everyone. Try to collaborate with your clients during the design process instead of simply presenting to them at the end. That’s what digital strategist Michelle Campbell learned during the SXSW Interactive Festival:

At agencies, we’ve grown used to spending weeks on one idea only to have it thrown away at the last minute. If we opened up this process to more sharing — among ourselves and our clients — we’d have more time to build and evolve better ideas.

Your clients may not know much about design, but they are experts in their industries. Getting their feedback early on will prevent you from getting attached to an idea that isn’t going to work. Campbell reminds us:

… we often rely on people with the word “creative” in their title for ideas, but we forget that inspiration isn’t taught. It comes from real life, and anyone can bring that to the table.

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Purge Paperwork with the One Touch Rule

Paperwork by Matthew Hall from The Noun Project

Paperwork by Matthew Hall from The Noun Project

A recent study found that the average worker loses approximately 80 hours per years as a result of disorganization. That’s nearly two weeks of vacation! When invoices, receipts, contracts. and drafts are piled up everywhere, you’re likely to waste hours shuffling papers from one pile to another.

Ann Gomez of Clear Concept Inc. emphasizes the touch it once principle:

Process each task the first time you touch it.

Triage effectively with Gomez’s one touch rule – as soon as you get it, act on it, delegate it, file it or throw it away. And don’t just stop at paper – this principle easily applies to phone calls, emails and social media notifications.

It’s a simple trick to help you batch your work into scheduled, focus blocks: you won’t open an email until you’re ready to give it your full attention, or you’ll decline to accept your coworker’s rough draft until later when you know you’ll have the time to sit down and do it. 

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In Most Meetings, 3 People Are Doing 70% of the Talking

Brainstorm by Garrett Knoll from The Noun Project

Brainstorm by Garrett Knoll from The Noun Project

There are two leading problems with the average brainstorming session, as researchers at the Kellogg School of Management explain :

  1. In a typical six- or eight-person group, three people do 70 percent of the talking.
  2. Early ideas tend to have disproportionate influence over the rest of the conversation. 

One of the researchers (as well as author of Creative Conspiracy: The New Rules of Breakthrough Collaboration), Professor Leigh Thompson, remarks that the dominant people don’t realize that they’re doing most of the talking. “In fact,” she says, “they vehemently argue that meetings are egalitarian.” 

The solution to these lop-sided meetings is brainwriting, instead of brainstorming. Thompson describes brainwriting as “the simultaneous written generation of ideas.” She breaks it down the process as such:

Step 1: Write just one sentence each. For the first five or 10 minutes of your next idea-generation meeting, every team member writes down one good idea or one proposed solution on, say, each of a small stack of index cards.

Step 2: Consider the idea, not the source. When the timer goes off, all cards are submitted anonymously and taped or thumbtacked to a wall for the whole team’s consideration.

Step 3: Put it to a blind vote. Team members signal their interest in an idea by marking it with a sticker or a Post-it note. Everyone gets a limited number of stickers and, if done right, the best ideas emerge quickly.

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Tom Dixon: Counterculture Is Dead

Tom-Dixon-56010.XL

In an interview with The Guardian, designer Tom Dixon comments on how counterculture has become mainstream, leaving no room for rebellion in design:

I’ve got a theory that it’s almost impossible now to be countercultural because everything is endorsed. Look at the Metropolitan Museum of Art’s show on punk. There’s nothing that isn’t authorised. Everything in fashion and in furniture has become super-legitimised. By the time it’s out there and blogged, it’s over.

Instead designing for or against trends, Dixon strives for his work to have staying power. Products are created for a specific purpose or “as ideas suggested themselves.” Either way, it’s always on his own accord and not because of what others are doing.

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