The Art of Negotiation

If you want to do business in Saudi Arabia you must be an expert negotiator.

Saudis come from Bedouin, trading stock. They are awesome negotiators.

Observation 1: they will wear you down with time. They will simply continue to take their time as if they have all the time in the world. They assume you do not and eventually you will crack and give them what they want (usually a discount).

Answer: Play along. There is no way to circumvent this process. Once you crack or show even the slightest desperation you are gone.

Observation 2: everything is negotiable. And it is negotiable up to and including the day the contracts are being signed.

Answer: decide right up front what strategy you are going to adopt. Now that does not mean giving discounts round 1, 2, or even 3. The sooner you give money away the more discount they will demand. Decide what is negotiable and what is not and do not waver. If you are unsure of your strategy they will sense it and you are gone.

Observation 3: all prices are always too high.

Answer: accept the above and be prepared to fight for every cent.

Observation 3: Value added services (which we regard as essential) have no meaning here. They are buying a product. They will pay for the product. They do not want to pay for implementation, consulting, support.

Answer: Build these into your product cost or brush up on your negotiation skills. I would recommend the first.

Observation 4: once you have said it (especially if it works in their favor) it is considered a valid concession and you are expected to stick to your word.

Answer: be frugal with your words. Consider and choose them carefully.

Accept the fact that in most cases your opposite number is a better negotiator than you (and he probably is). Prepare accordingly, have a strategy, and do not try to make things go faster. If you do all of the above you "may" make a small profit.