Wilkinson: Employees do not negotiate purchases due to discomfort, delays, and misaligned incentives
Andrew Wilkinson · 6 startup ideas from the Tech Warren Buffett (make $120k/mo) · Oct 14, 2024 · at 32:53
Andrew Wilkinson explains why corporate procurement is inefficient and why employees rarely haggle on enterprise expenses.
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“An employee does not care to do negotiation. First of all, it's really awkward. It's really, really uncomfortable. Two, it slows everything down. You know, if you just want to choose the desk you want to buy and just buy it and to get the deal takes like three weeks sometimes. So it's time and then incentive. Why do they care? Right? It's like, why is it worth it for them to spend all this time and money to save a couple thousand dollars to you? That's a couple thousand dollars of profit to them. What does that mean? It's like maybe another couple of dollars on their bonus or something like that.”
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