Small businesses generally discount their negotiation position when dealing with a larger company. Basic economics would dictate that if you provide more value in an exchange you should be compensated.
Consider the hotdog vendor in front of Home Depot. I postulate that Home Depot derives more value in that exchange than does the hotdog vendor. When I employed day-labor I often took my crew with me to Home Depot and bought them lunch while I went shopping for supplies. Home Depot received my business rather than another hardware store because I could maximize my day-labor rate by killing two birds with one stone.
I could have shopped anywhere for supplies but the hotdog vendor made the difference for me, and Home Depot benefited to the tune of several hundred dollars in supplies per visit. Yet, because the hotdog vendor discounted his negotiation position, he pays Home Depot rent for the privilege of setting up in front of the Home Depot.
Are you guilty of discounting your negotiation position?
