I want to make a confession.
I hope this does not make me sound evil haha.
About 1 month ago, a former employee informed me that his friend is putting up his internet cafe / business centre for sale due to personal reasons I will not mention here. The location is very strategic. It is in Waru Street, a neighborhood of Internet Cafes and Game Centres. It has been inactive this last month.
I've looked at the place, brought a relative that runs and understands the Internet business. The location of the cafe is very strategic compared to other competitors. The cabling is also satisfactory. The financial sheets are good enough. Not spectacular, but then again they do not have a fullproof SOP. The only flaw is the computers. They are as old as dinosaurs. He is selling the whole content, which consists of:
1. Server
2. PCs (PIV 1,7 + PIII 800)
3. 2 Aircon totalling 3pk
4. Refrigerator
5. Printer
6. Scanner
7. Tables & Chair
8. Cable
9. Phone
10.etc
I value the items quite low. For example, I need half of the PC but I stated that I would replace them all so I would only value them 1 million for canniballing purposes only LOL. By stating that I actually do not need his items (not true btw), I project to him that his items are valueless.Let's use example purpose only numbers:
The owner asked for 15, does not want to go down. I valued the assets under 9. For cannibal, I am willing to raise the offer to 10.
Here's how I sorta played a little bit, just a teeny weeny bit dirty. I contacted his right hand man. Asked him how much he was getting paid. I told him I would give him a raise and a small profit sharing scheme if I got the place. I then ran by him the valuation numbers one by one. Of course, when the owner then asks for his opinion, he would then answer that my offer is attractive.
Another thing I found out by contacting the building owner is that the business centre's contract actually ran out in June. So time was definetely against the owner. The longer he waited, the less value his business is. He is getting kicked out in August! Now this would not be good for both of us; he winds up with valueless junk, and it would be too troublesome and costly for me to install new equipment from scratch. I am however, unwilling to pay the asking price. Determined to get a low price, I waited and waited until Friday, the owner started calling me. Every 15 minutes or so. Of course I did not pick up the phone. I did not reply his text messages either. Even his right hand man was nervous and buzzed me on YM and texted me whether I still wanted to buy the business. I left them sweating until Monday (28 July) morning. I sent a text offering to set up a meeting. "Unfortunately" he is unavailable that day, or the next. Why the double quote? Because I knew he would not be available. Which was why I asked for that exact time he would be unavailable. This provides a psychological effect that I am willing to negotiate but he is always unavailable.
I asked his right hand man whether the owner reconsidered my offer and he said he agrees to a price of 10! haha. Yesterday the owner called and asked my home address so that he can come over at any time I wish to discuss the price. Of course I would not be interested in having business be brought home, especially if things do not go as planned. Plus, I feel sorry if he had to go from Rawamangun (edge of East Jkt) to Joglo (edge of West Jkt), so I told him to meet me at a mall. Puri Indah Mall LOL! I was taught in negotiation class that to have an edge there are some tips:
1. negotiate at a venue you are familiar with and where the counterparty is unfamiliar with.
2. be in top stamina while the counterparty is exhausted.
3. plan ahead. know what points you are able to lose to make the counterparty feel that it is a win-win situation.
The first two reasons are why I chose Puri Indah Mall. It is far as hell from their place, while it takes me only 20 minutes to get there. I could've picked Senayan (also 20 minutes from my place) but it is too close to his location and I am sure he's been to Senayan haha..
Dont judge me by this article.. I mean... business is business... buy lower sell higher.
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