<$BlogRSDUrl$>

For three years, I have been in China teaching Swing Dancing. Now I'm wandering yet again...

2004-03-05

Last Wednesday was opening night at Sasha's. Because of an article in a local expat magazine, City Weekend, we got at least eight additional new people. There were about 25 at the event, just about ideal for the size of the place. Everyone who came was already interested in dancing, and I think they will all sign up for classes -- or at least they asked about them.

I don't think we will stay long at Sasha's, however. It is a popular place and it seemed like our people did not buy very much at the bar. This is common with swing dancers. They don't drink. It's what killed the swing dance popular movement back in the U.S., and it's something I've been thinking about a good deal. We want to position ourselves so that the same thing does not happen here. There's three basic approaches that I can see. First is to bring in additional 'observer' people who partonize the bar more. Second is for the bar to market food and juice instead of alchohol. Third is to pick a venue which is not dependent on alchohol income.

In old business news, the IRS issues have been completely wrapped up. It was merely an error of overreporting. My accountant filed the proper forms and everything is okey dokey. If I were back in the States making consulting income, this really would not have been a big deal. But now, they said I owed two full months of current living expenses. So I'm glad that worked out.

In local business news, I turned down the job offer from the local event management company.

I felt very guilty turning down the offer. The guy had been a friend of mine since my first week in Shanghai. He hired me and my dance parntner for our very first swing dance show. But when the formal proposal came in, I was filled with a sense of dread.

I never pursued this job. Months ago, my friend asked me to represent his company at a meeting. One of their clients was a European, and they needed to save a major account. I was doing nothing on that day, so I agreed. My friend's girlfriend was to be my co-representative. She had very little business experience. I reviewed her sales pitch and strategy for the meeting, and I shook my head. "Let's just do a little revision..."

After many changes, I was quite pleased to find I did carry the meeting. I could hardly believe it myself. I sounded like I'd worked in marketing for years. At this point, everything was quite exciting. As meetings continued, I realized the value I could contribute to my friend's company. They just did not understand Western business. One day we offered several plans to the client, all of which were rejected. As we left the meeting my co-worker was talking about going ahead with the first plan we had presented. I told her, "You know he said 'No' to our plan, don't you?"

My thinking was I could serve as a presenter and cultural liason. I would sell their product and tell teach them Western business at the same time. I would ask for a good comission on anything I sold, and they'd do the execution of the work. It would not take too much of my time, so I'd be free to pursue my own interests.

We met with that client four or five times. And I had never sat down with my friend and specified how I was to be paid in the whole affair. No one seemed to disturbed by this. "I'm sure he'll take care of you," my co-worker said. I told my friend how I wanted to contribute and asked him what comission would be fair. "You first!" he said. I hadn't tought of it. I told him I'd get back to him.

Eventually, in the meetings we were giving the client quotes for services. I could let it go this far on faith, but I was not going to close on any part of this deal until I had at least a verbal understanding with my friend. We scheduled a Saturday lunch. I told him the common sales commission in the U.S., and he said he'd talk to his partner and get back to me.

I've learned the basic Chinese negotiation technique, used from the fabric market to the board room. First, devalue and insult the quality of a product. Then, offer less than half the asking price. My friend's counter-offer read, roughly, "You suck. You have not completed the duties assigned to you, nor have you agreed to work as much as we need in the future. As such we offer you half of what you have asked."

My reaction was like that of most Western men. "High hard one, PAL!!!" I refrained from sending a point-by-point response, though. I just said, "Thank you for your response. I will consider your counter-proposal."

The offer specified other things as well, like a montly sales quota. It suddenly realized I could not go along with this anymore. I realized it was a serious position which would require a much greater investment that I'd thought. And furthermore, only my friend and his girlfriend spoke English. I'd be the lone foreginer working with people I could not talk to. And I'd have no one who understood my Western-oriented point of view. And all of this in a field I felt neutral about for pay which warranted none of the risks. After a few days I sent a rejection letter, offering to see the client one more time to help transfer the account to another representative of their choice.

I felt quite bad about the situation. Many Chinese perceive business as making friendships. They had been my friends, too. We had gone to dinner together. My friend's girlfriend had leant me money when I lost my wallet (all repaid.) I had helped them with the business pitches in gratitude. But it had gone too far. I had to say no to joining them, and unfortunately it will probably end the friendship.

A learning experience. And so we go on.
-J
Comments: Post a Comment

This page is powered by Blogger. Isn't yours?