Mutual Profitability – Principle III

This is the probably the easiest Principle to “get”. We always hear about a win-win situation during negotiations, but this is a little different. A negotiation or a contract is just one thing. It is not a relationship. Many would argue, in fact, that trying to find a “win-win” scenario is not always the best thing to do during a negotiation. Regardless, a relationship is more than one thing…it is a lot of one-things strung together. In a relationship, mutual profitability is essential.

One sided relationships never work…at least over the long haul. Both parties must be getting something out of the relationship. It might be financial profit, an association with another company, hard work, great service, or a great product, but any lasting relationship will have something for both sides.

Like with growth, it is in your best interest to help your partner gain mutual profitability (however they define it). Ultimately you will gain from their profitability, as well. Likewise, you should expect, even demand, that you are getting what you need from the relationship. It doesn’t matter is you are the supplier or the buyer, you should not waiver from your commitment to profitability over the long-term. Do you really want a partner that is not committed to your profitability?

When you have partners that are truly invested in each other, there is the opportunity to celebrate successes and support each other in the market. Through mutual profitability comes excitement and opportunity.