Episode 449: Dan Moore on Build vs Buy

Negotiation Tactics

Negotiating software deals requires strategic thinking and understanding the nuances of pricing and features. Dan Moore emphasizes the importance of being transparent with vendors when narrowing down options, as this can lead to better insights into the differences between potential choices 1. He also highlights the significance of timing in negotiations, noting that understanding a vendor's sales cycles and quotas can lead to advantageous pricing 1. Marcus Brown adds that evaluating vendor size and market presence is crucial, especially when deciding between major players like Stripe and Braintree 2.

   

Relationship Building

Maintaining strong vendor relationships, even after rejecting a deal, is essential for future opportunities. Dan Moore advises treating vendors with respect and providing constructive feedback, as today's rejection might be tomorrow's opportunity 3. He believes that honesty and transparency can foster long-term professional relationships, as "all knows that we see are not nows" 3. This approach ensures that both parties remain open to future collaborations, understanding that business dynamics can change over time.