Top 5 behaviors of 2009: The “large” broker
Last August was hot, as always. In Greek we say that "the flies are fat" and noone works. No one? Not exactly, you could see a crazy guy, dressed with suit and tie walking from one meeting to the other, trying to sort out things and finish pending tasks before his own vacation. I (the crazy guy) had just finished a meeting at Hilton and walked down, crossing Calea Victoriei. I entered strada Luterana heading to my destination. On my left hand I was looking at the famous "Cathedral Plaza" office building project, on my right I was watching the waiters preparing the tables of the very nice bistro there, when my mobile rang…
The usual problem in smaller societies
There are cities where I have been heard of signing many deals,
but there are also others where I managed to be active but more quiet, throughout these five years I have been travelling around the country. This city belongs to the second category. It is one of the top 5 Romanian ones, but I managed to avoid the eyes of all curious persons. I had to accept people trying to check every step of mine, questioning my work and my clients' seriousness. But I chose this, instead of presenting all my secrets, announcing to (some serious – some greedy) people everything they needed to know, so as to treat me with fake respect and ask for crazy prices.
I was negotiating 3 properties for retail projects and I had to find solutions against the usual problem: "The society is smaller, all people know each other and there are some "smechers" who try to sell to you at very high prices (so as to brag to all the rest that they managed to trick one more stupid foreigner). If you refuse paying stupid money, they speak bad about you to everyone, trying to block you and force you return to them".
The lovely "smecher" who remained in the past
I have many "wrong" perceptions about business. One of them is that I don't want to bypass people. So, I was waiting already for quite some time one "collaborator" to bring me in direct contact with the owner of the 1st property (out of the 3) and negotiate with him. He was refusing and was trying to force me discuss the price and the terms with him (so as he would be able to control the deal and keep the price very high). But he had strong arguments: He was wearing expensive shoes, suits and watch, plenty of cars etc. (I guess that soap is more expensive than cars in his city, this is why he avoids using it, saving money for the other luxury goods). One more lovely "smecher" who did not realize that the time of his glory (2005 – 2008) has passed forever…
"If you don't come with 20 million euro in the next 2 weeks…"
"Yes", I replied my call while walking on the street. "Hello Ilias, it is me" (and said his name). "How are you?" I recognized the "smecher" with the "singing" way of talking. "I am waiting the feedback I have asked you for, already since couple of months". "No, no. Trust me, I will not give you anything at all, because the owner does not believe that you have the money". "Correct, I don't have the money in my pocket, but we can not have a project done without the necessary paperwork and due diligence, so as to establish every detail". "No, no, listen to me, you don't understand me, listen to me", he interrupted me. "We do not believe that you have the money". "Ok, when I will meet the owner I will show him some proofs". "No, no, we want the money in advance". I rose the tone of my voice: "We talk about a major retail project, worth lots of millions of euro. We are in the beginning of August, we have not agreed on the price to buy the land and you want us to show what?" "But I told you the price". "You told me YOUR price, I want to see the owner and discuss directly with him". "It is the same".
"It is not. But what is your problem, we have a contract together, you will get your commission". "No, no, you don't understand. We have 10 clients who beg us to buy, without your tricks to see papers etc. They trust me and they don't check too much. You Greeks think that you can steal Romanians? You think we are naïve? No, no… I want you to come here and show me 20 million euro, cash. I give you 15 days for this. If you don't come with 20 million, I will understand that you are not serious and we stop discussing together".
The property remained unsold, the "large" broker is upset…
My reply to this "large" (with other people's money) broker can not be written here, it was not very polite. Couple of days after, I officially informed him that we stop our collaboration (he didn't bother replying). I rejected the property he represented and finally bought another one. It is important for me that the owner of the bought property thanked me for how my treatment to him.
I could easily go directly to the owner, but I don't do it. Instead I followed up on the news about the property. Today, five months later, its price is officially the same, but unofficially 30% less than it used to be. And so far out of the endless queue of buyers, there is noone who accepted his price and signed any kind of contract. The "large" broker did not have any deal until the end of the year and he is a bit upset, I guess still against the Greeks.
The good thing is that the owner switched to someone serious to represent him. Maybe during this year I will finally meet him and do business together. Who knows? Speranta moare ultima…