The Shark and the Fish by Charley Swayne

Author:Charley Swayne
Language: eng
Format: epub
Publisher: ECW Press
Published: 2012-03-09T16:00:00+00:00

If you have created a product far superior to that of your competitor, consider allowing him to help develop the market for you, and then roll out your advanced product. You want competitors to throw money into the market. In poker, this is a perfect play. In business, you risk “the first to the market wins”; however, if your product really is untouchable, there’s no reason not to let him do the betting for you. Let your competitor create market awareness through his bet of advertising; then capture the market with your superior offering.

Samsung has the resources to be the initial market leader but prefers to let others develop the market. Once it is sure of a true market trend, it makes its move to be the market leader.

As we have discussed, customers and opponents have tipping points. The point where, if the bet is too high, they will fold or, if the price is too high, they won’t buy. When someone with a unique product asks for pricing advice, I flippantly say, “Keep raising your price until everyone stops buying.” If you could find a cure for the cold, you’d need to find out what it’s worth to your customers as opposed to how much it costs you to produce it. In a one-on-one negotiation, knowing how much the other person can afford and what it’s worth to him are two strategic tipping points.

To the experienced pro, a bet of a relatively small percentage of the pot on the river is read as either a value bet or a bluff (known as a post oak bluff). Unfortunately, he seldom knows which. Many pros call because they believe their opponent is trying to make a move on them.

The value bet is often used in negotiation, usually after there is agreement on the main point or when the deal is almost done. It consists of asking for a few additional provisions, extra concessions, when everyone is in a “yes” mode.

I don’t like it when someone welches. That’s when I definitely bet for value.

I had won a substantial judgment, far in excess of what it was really worth, because the defendant didn’t show up in court. We got together and agreed on what I considered to be a fair settlement. When it got to signing, he wanted to change the deal. Okay, if you want to renegotiate, we’ll renegotiate. I went through every page of the proposed deal and increased everything in my favor. Then I told him if he didn’t sign I would collect the judgment. He signed.

In no-limit, unless the pro is short stacked and wants to get to the flop as cheaply as possible, if he is first to act, he will raise. It takes a better hand to call a raise than to make a raise. This is known as the gap principle (Sklansky). If you have a good product, you can certainly enter the market first. But if a competitor has introduced a strong product accompanied by

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