“I’m throwing a haymaker when he thinks I’m gonna say something nice to him”
“A lot of people still saw it as human cock fighting”
“Whoever has the gold makes the rules”
“If they are not on your team, they are against you”
“No we aren’t friends, you are trying to make money off me and I am trying to make money off you”
- Welcome Back: 00:30
- John Makes People Uncomfortable: 3:15
- Entering A Saturated Market: 10:40
- John’s First To Market Marketing Agency: 19:30
- Getting Your Product Ripped Off: 26:10
- Closing Remarks: 31:30
Many times in negotiations, the sheer directness of John makes the people on the other side nervous but it also can make Cory a little uncomfortable. He will often go on mute to avoid being heard laughing at how direct John is. Not because of what John is saying but the manner in which he says it. John is very comfortable in uncomfortable situations. He likens it to a fight. The best time to start it and end it is when your opponent is not expecting it. In this case, the opponent is the person on the other side of the negotiation. John will be in the middle of exchanging pleasantries with a vendor then all of sudden drop a bomb like, “We are paying X for this product and with the volume we do frankly, its insulting. We know what the other people pay…” etc. This catches the person off guard and makes them uncomfortable. The fact that now this person has to respond on the spot, puts him in tough situation where most likely they will give ground. Part of growing the business is lowering the cost of goods and in order to do that without decreasing quality, you have to renegotiate with vendors as your business scales. Know that the only people on your side are your partners and associates. Even if you do peaceful business with someone for 10 years they are not on your team.
Everyone has the knee jerk reaction of “if I am first to market then I win.” If you are first to market you are essentially creating a new category. What comes with this, is an astonishing amount of consumer education. If you are truly first you have to spend a ton of money explaining why people need what you are offering. If you are in a business like supplements then the consumer already knows what it is and why they need it. You could wind up spending 70% of the capital you raised could go to education. If you can do this effectively then the rewards can be monstrous. If you are going into a market that is saturated then you need to find a way to differentiate yourself. What makes you original? It is hard to fight to be original in a saturated space but it can be done. Another thing to think about when entering a saturated market is whether you are entering the appropriate ecosystem. Think about Steve Jobs creating the iPod and iTunes at the same time. That is the prime example of creating an ecosystem that supports your product/service. You must think about the supporting structures in the marketplace that can prop your business up or potentially kill it. Something else to think about is how often people will be using your service. Can you create something that will generate repeat customers or is it a one purchase type business?
John was in a first to market business when he ran his marketing agency. They were trying to pitch the idea of UFC marketing. No one really understood this sport yet and they were trying to get sell the value of it. So much of the first two years was a struggle and a fight because of all the education they had to provide to the corporations. It wasn’t just explaining the value once but it took over a year of education to sell people on this idea. Many people still believed and looked at it as human cock fighting… chicken fighting, even after it had success. When you can enter areas that people don’t see value in yet, you can become a leader of that niche. If you execute properly.
If you are coming out a product in an area with monster players and its starting to work the big players will take notice. They will rip it off and even if you have patents and trademarks, you can sue them but they won’t care because the legal fees and penalties won’t even put a dent in their pockets. They know that those kinds of fees compounded over time can ruin a small company though. So if you have a product that is truly industry changing, do a capital raise, lock it and be careful. Louie Simmons had seven patents on his “Reverse Hyper” training equipment and still had trouble with people ripping him off. The big guys, straight up do not give a fuck if you are going to try and sue them.
If you have something you believe is good, something you can market and sell then it shouldn’t matter if you are first to market or not. Regardless you have to figure out the strategy and go all in. If you are going to be first to market you will have to raise a lot more capital because of the necessary protection and education that comes with it. When you are not first to market you don’t need to protect it as tightly.
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