The art of making the deal (any deal) is wisdom—plain and simple. No matter how many years you’ve studied, how much money you’ve previously made or whether you have ivy league credentials or not—wisdom is more priceless than anything. The bible says, “If any of you lack wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him,” James 1:5. God gives wisdom and we must employ it in life and business dealings.
My husband and I were watching Billion Dollar Buyer on CNBC where billionaire businessman Tilman J. Frittata comes to the aid of struggling businesses. On this particular episode he was attempting to assist Mr. Jed Malitz of V2 Gallery. Mr. Malitz creates unique 3D glass sculptures that he was pricing rather steeply for $200,000 a pop. He had only created 5 pieces so far and couldn’t afford to create more because he had only sold ONE single piece and could barely afford the overhead to keep the gallery open.
Mr. Frittata (the Billion Dollar Buyer) owns several hotels, seafood restaurants and spends millions each year for the upkeep of his plush establishments. Entrepreneurs know that one single purchase order from him can keep a business afloat for years. So, after being amazed by the sculptures Mr. Frittata made Mr. Malitz an offer for one of his pieces—a $100,000 offer. Mr. Malitz foolishly turned down the offer because it didn’t meet his $200,000 requirement. His problem was that (even with the urging of his wife) he wasn’t willing to budge on the price of his sculpture even though it was obvious that he set his prices based on where he hoped to arrive one day as a prestigious artist, not for the value that his sculptures have today.
Mr. Malitz is a relative unknown artist and although he may be pricing his work based on what others are charging for similar designs—comparison isn’t the measure by which you earn revenue. One thing I learned early on in business is to tweak my prices. You may WANT to sell a book, product or service for $40 but if you get too few purchases, wisdom will either show you how to market better or decrease your asking price to gain revenue and clientele. Fact is, if it becomes a hardship doing business with you, less people will do business with you and you never want that. Whether it was pride, comparison or simply a lack of trust in the process, a moment of wisdom is all he needed to seal the deal.