3 Ways to Kill a Business Deal in India

Ceres

New Member
Entrepreneur.com offers some suggestions to Americans who are looking to do business in India. Here are 3 ways an American can kill a deal in India:

The Deal-Breaker: Rushing the business transaction
"Relationships here are based on trust. It takes an investment of time to establish a relationship, and it's that way because it's been that way for thousands of years."

During your first visit, Bagla says that while you may be itching to make a deal, one of the first questions you may hear is, 'When will you be coming back?' And while you may be tempted to say, 'Let's make a deal, and I'll be back as soon as you want,' that's not what an Indian entrepreneur wants to hear. He just wants to know when you'll be back. A deal can be worked out later, maybe.
The Deal-Breaker: Not taking into account the religion, region or background of your counterpart
India has 23 languages and half a dozen major religions, including Hinduism, Christianity, Buddhism, Jainism and Sikhism.

"You must customize your approach," Bagla says. "A Punjabi-speaking Sikh machine shop owner in Delhi may behave very differently from a Gujarati-speaking vegetarian Jain in Mumbai.
The Deal-Breaker: Missing the social nuances
Business people in India, as a general rule, don't like to say no. As S. Elizabeth Foster, a partner at the law firm of Luce, Forward, Hamilton & Scripps in San Diego, who often does business in India, says, "You may think the business person across the table is conceding your point; he or she may just be exercising politeness while thinking it over or even disagreeing with you."
You can find more tips at:

3 Ways to Kill a Deal in India - Cultural barriers in business - Entrepreneur.com
 

karu

New Member
These three tips have great potential. Though they have been explained in pretty short, I am sure that if people take it seriously they might not have to face deal breaks.

I would like to mention one thing that almost all Indians like is saying hello in their mother tongue... Say if you are meeting a punjabi, greeting him with "Sat Sri Aakal" would definitely do wonders.
 

Ceres

New Member
I would like to mention one thing that almost all Indians like is saying hello in their mother tongue... Say if you are meeting a punjabi, greeting him with "Sat Sri Aakal" would definitely do wonders.
That sounds like a good tip - thanks karu.
 

taki

New Member
I've never been fond of dealing with dodgy people. What some people call politeness, I call a mind game. I let people know up front I am not into being polite, I say what I think good or bad, offensive or not. Straight up is the way to be in my opinion.
 

luckymurari

New Member
I've never been fond of dealing with dodgy people. What some people call politeness, I call a mind game. I let people know up front I am not into being polite, I say what I think good or bad, offensive or not. Straight up is the way to be in my opinion.
As the laws for entrepreneurs may say , the slow way of earning is more sustainable compared to those done in hastiness.The earnings shouldn't be like a wave.Instead it is always safe to have an earning which slowly climbs the steps of success.It is good to say anything good upfront, but when u say something bad, then later u may be the one losing the business.Take IBM and Microsoft example.

I would like to mention one thing that almost all Indians like is saying hello in their mother tongue... Say if you are meeting a punjabi, greeting him with "Sat Sri Aakal" would definitely do wonders.
I give my +1 for this.After all, to sum up, be friendly not just business minded.Come here, make friends and take money and happiness.But not, come here, do business and carry ill fame.


One thing amuses me is the last statement in the main article.It says don give a Hindu things wrapped up in white and black and leather ones.Common, it was an older myth but Indians now don mind leather and even black and white wraps. :)
 

rajdeep.rathod

New Member
The Deal-Breaker: Not taking into account the religion, region or background of your counterpart
India has 23 languages and half a dozen major religions, including Hinduism, Christianity, Buddhism, Jainism and Sikhism.

"You must customize your approach," Bagla says. "A Punjabi-speaking Sikh machine shop owner in Delhi may behave very differently from a Gujarati-speaking vegetarian Jain in Mumbai.
Its a sure deal breaking tips....thank for sharing your views...Thumbs Up for you...
 
Last edited by a moderator:

cogbuddy

New Member
Well this is interesting. But they are true here. And regarding the first issue, i have got some doubts. Say for example i have dealt with a dealer where in he is making too much of delay in his payments everytime. But he pays at last. I get quite a lot of problems because of the delay. So what can i do here?
One is that i can quit his relationship but ultimately i will lose my potential business. Or push him to make the payment and continue the business?
 

Ceres

New Member
I've never been fond of dealing with dodgy people. What some people call politeness, I call a mind game. I let people know up front I am not into being polite, I say what I think good or bad, offensive or not. Straight up is the way to be in my opinion.
It's good to be upfront taki, but at the same time it's important to be tactful in how we say that something. In many situations, how we deliver our opinion will dictate whether we receive a positive or negative response from the other party.

Well this is interesting. But they are true here. And regarding the first issue, i have got some doubts. Say for example i have dealt with a dealer where in he is making too much of delay in his payments everytime. But he pays at last. I get quite a lot of problems because of the delay. So what can i do here?
One is that i can quit his relationship but ultimately i will lose my potential business. Or push him to make the payment and continue the business?
This is just my 2 cents worth: perhaps this is where a signed agreement would come in handy. Make sure you have a clause in the contract as to the consequences of such late payments. It might provide a bit more incentive for the dealer to pay you on time. Anyone one else have any ideas?
 

newyorkdude

New Member
About late payments:

The idea that you make a deal today and expect to be paid ASAP is very Western. It is not a rule followed all over the world. Many Indians are used to paying quite a while after the deal is done. The modern Indian young person probably was taught all about the Western idea of prompt payment and has thoroughly absorbed the lesson. But that young Indian's parents might live on a different time schedule. For example, they might be used to paying their pharmacy bill several months after they picked up the pills.

In China, for example, it is not unusual to be paid a half a year after the deal is done or after delivery. Regular people also pay slowly. In India (and many other countries) workers sometimes get paid several weeks or even months after their work is done. These workers live with it. A Westernized worker might demonstrate or strike or do other nasty things to a boss who pays late. Not many Asians.
 

Ceres

New Member
Very enlightening, thanks NewYorkDude! Is there usually a written contract in place when these late payments occur?
 

newyorkdude

New Member
Written contracts is a Western notion. Traditional business in most of the non-Western world is not done by written contracts, but handshakes. Most of the world does not have many lawyers, so in most of the traditional world does not bring late payments to courts. Business in traditional economies is done on the basis of honor. If you have a bad name for nonpayment no one wants to do new business with you.
 

Ceres

New Member
Yes, I've read that in India they don't like documentation. NewYorkDude, thanks for all this information.
 

rickeybojey

New Member
Know the personality and attitude of people you are dealing with. Sensitivity of the persons feeling should also be applied because they have different culture.
 

Ceres

New Member
I just came across this video, which offers advice about the do's and don'ts of doing business in India. You can listen to some interesting insights. Here are some examples:

  • India on the outside looks chaotic but once you get through the layers, you'll find internally it's very organized and calm.
  • The Western aggressive approach of doing business (and looking for it to be done fast) is considered disrespectful in India. It's better to have a gentle approach.

  • Take the time to understand and learn about their family. Family life and community is the same in the workforce as well as in the home.
 

domainerin

Active Member
Country flag
The idea that you make a deal today and expect to be paid ASAP is very Western. It is not a rule followed all over the world. Many Indians are used to paying quite a while after the deal is done. The modern Indian young person probably was taught all about the Western idea of prompt payment and has thoroughly absorbed the lesson. But that young Indian's parents might live on a different time schedule. For example, they might be used to paying their pharmacy bill several months after they picked up the pills.

In China, for example, it is not unusual to be paid a half a year after the deal is done or after delivery. Regular people also pay slowly. In India (and many other countries) workers sometimes get paid several weeks or even months after their work is done. These workers live with it. A Westernized worker might demonstrate or strike or do other nasty things to a boss who pays late. Not many Asians.
I wouldnt speak of china but my family was once considered the cement king of india and from what I know, workers need to be paid daily.. something even in advance. You cannot delay your workers payments because they live off on the money they make everyday. They have no savings and they want no savings. They live in slums and they live their life of whatever money they make... ofcourse its subjective on what you define "a worker" as.

A deal breaker for me would be if a westerner tries to rub his royalness in my face. The reality is asians save money and invest in property. Just with that virtue we are way too rich than you can imagine.. our apparments are worth 200k - 300k $ just to give you an example... if an american tries to rub his money in my face.. I dont even pick up his call the next day no matter how important his business may be.
 
Last edited by a moderator:

itssri

New Member
once considered the cement king of india and from what I know, workers need to be paid daily.. something even in advance. You cannot delay your workers payments because they live off on the money they make everyday. They have no savings and they want no savings. They live in slums and they live their life of whatever money they make... ofcourse its subjective on what you define "a worker" as.
The "workers" you mention are the type who do unskilled manual labor like picking up headloads of raw material and dumping them onto trucks that will take it to the cement factory. Since you don't know if you are going to see that worker again, you have to pay him on the spot. But workers who do laundry, who deliver things at the home, domestic help etc are not paid daily and neither do all workers live in slums.

The payment models in India are broadly of these types:

(A) Organized sector (usually the Government and Public Limited Companies)
(1) regular employed skilled workers - paid monthly
(2) regular employed unskilled workers - paid monthly or weekly in some industries
(3) skilled or unskilled contract worker - after work finishes, there is a vicious cycle of purchase committees/officers who drill the worker and dissect the bill very thoroughly and most times it takes much more time to get the payment than it took to do the work. For example, if a worker was contracted to do some electrical repair works in a big cement factory, and which he finished in 2 days, his payment may take months to be released (unless he offered a massive discount or perhaps greased some official in cash or kind)

(B) Un-organized sector (private companies, small businesses, homes, even local government)
(1) regular employed skilled workers - paid monthly
(2) regular employed unskilled workers - paid monthly or weekly for some like construction workers, farm labor etc.
(3) skilled or unskilled contract worker - there's lot of haggling involved here - but usually payment is done at the finish of the work which may be a day, week or even a month.

Depending on personal relations that the contract workers maintain with employers, they might be able to get occasional milestone payments and rarely even some advance.
 

domainerin

Active Member
Country flag
The "workers" you mention are the type who do unskilled manual labor like picking up headloads of raw material and dumping them onto trucks that will take it to the cement factory. Since you don't know if you are going to see that worker again, you have to pay him on the spot. But workers who do laundry, who deliver things at the home, domestic help etc are not paid daily and neither do all workers live in slums.
Thats where I said
ofcourse its subjective on what you define "a worker" as.
(2) regular employed unskilled workers
These prefer daily payments, sometimes even advance.

Anyway, lets stick to the topic of business deals ;) ..
 
Thread starter Similar threads Forum Replies Date
Prashant Sharan Andrew Allemann's 7 ways to liquidate your domain names Resources 0
Prashant Sharan Safe ways of trading domains during COVID19 outbreak Resources 0
Prashant Sharan Senator Wyden promises to find ways to protect Users, Nonprofits in the wake of dotORG sale Registrars 0
JulienJ 10 Ways to Sell More Domains Resources 0
domainking131 3 Ways to Get Them to Click on Your Business Over the Competition Webmaster Forum 2
domainking131 Three Ways To Be Wrong About Crypto-Tokens Cryptocurrencies 2
Parth Leasing domains and other ways of earning Business and Economy 4
Mikhaela Best ways to make money in the domain business. Business and Economy 3
Britney Unique ways of marketing website Marketing Your Website 8
Mallard Other ways to monetise? Webmaster Forum 7
DomainSherpa Help! My Domain Name Was Stolen (And 3 Ways to Recover It) - With David Weslow The Lounge 0
domainking131 Trai looks for ways to provide free internet Business and Economy 8
domainking131 8 ways to get higher ROI for your domain names from Rick Schwartz Non-Indian Domains 0
domainking131 Disorganized portfolio can cost you in a few ways Non-Indian Domains 0
domainking131 4 Ways to determine Traffic to a website Resources 0
domainking131 Ways to buy used Domain names Resources 0
domainking131 15 legitimate ways to make money online Resources 0
Ceres Various Ways to Create a Mobile Version of Your Blog Webmaster Forum 0
M Four Great Ways To Generate Traffic To Your Blog Webmaster Forum 2
J Effective ways to promote a website? Webmaster Forum 30
Prashant Sharan How new gTLD auctions could kill gaming for good New GTLDs 0
Prashant Sharan How new gTLD auctions could kill gaming for good New GTLDs 0
C kill.in and glad.in caught in 2011 For Sale 5
the_poet Massive group forms to kill off new gTLDs Non-Indian Domains 1
Prashant Sharan Ron Johnson analyses the effect of Covid_19 on domaining business Resources 0
Prashant Sharan Podcast Alert !! : Adrian Kinderis on his history in the business and his new GTLD .film Resources 0
Prashant Sharan GoDaddy is growing: Domains business gets $356 million Q1-2020 Revenue Registrars 0
Prashant Sharan GoDaddy will buy Nustar's registry business for $218 M Registrars 0
Prashant Sharan GoDaddy signs up 30 partners to help small business keep afloat Registrars 0
L 12+ years aged domain | ClickToCall.org | Best for VoIP Business | $1 NO RESERVE at Flippa External Auctions 1
Prashant Sharan Uniregistry rebrands to UNR to show its focus on the registry business Registrars 0
Prashant Sharan Podcast Alert !! : Joshua Reason and his business partner Joshua Schoen on liquidating your domains Resources 0
Prashant Sharan Let's see how business segments are faring in the pandemic Resources 0
Prashant Sharan Adapting your business to the Corovavirus pandemic Resources 0
Prashant Sharan Podcast Alert !! : Warren Coughlin on how to save your business in this downturn Resources 0
jedi Domain CoronaVirus.business Non-India Related Domains 0
Prashant Sharan Now Amazon goes for Business Relief domains Registrars 0
Prashant Sharan DNW Podcast: Lawyer talks about turning his business around with new domains Resources 0
Prashant Sharan Elliot Silver on half a billion domain auction business that we don't know about Non-Indian Domains 0
Prashant Sharan Problems of building a business on someone else's company’s platform Registrars 0
J Online Business vs Offline Business Business and Economy 0
Prashant Sharan Xcerion renames its software business and changes its web address for $5.2 Million Non-Indian Domains 0
Prashant Sharan How to build a great single-page website for your small business Resources 0
Prashant Sharan Tucows exits from domain business Business and Economy 0
Prashant Sharan Nice read: Elliot Silver adapts a “MUST READ STORY!!” titled article for the Domain Name Business Resources 0
Prashant Sharan Niels Duinker is enhancing his business through domain name acquisition Non-Indian Domains 0
Prashant Sharan Niels Duinker is enhancing his business through domain name acquisition Non-Indian Domains 0
Prashant Sharan Are you a Russia,Panama,Alabama resident or are you doing business with entities from those ares ? Legal Issues and Dispute 0
J Small Business Success Online way Business and Economy 0
Prashant Sharan Business lessons from big wave surfers (video) Resources 0
Similar threads


















































whois



Forums dedicated to Indian domain names, including buying, selling, appraising, developing, and monetizing.

About Us

Threads
26,117
Messages
72,903
Members
7,593
Latest member
ThurmanKes
Top Bottom