Don’t be Ruled by Fear: Business Lunches are a Great Investment

Don’t be Ruled by Fear: Business Lunches are a Great Investment

Posted on 23. Jan, 2009 by Mark Cornish in Uncategorized

Reading Craig’s post on Micheal’s $30 burger, one has to wonder, What is the appropriate amount to spend on a business lunch?

People make decisions based on emotions, and there’s a lot of fear going around right now. It’s hard to grasp the big picture when your emotions rule your business decisions. I mean, when you’re cementing a relationship with a good client, you don’t want to be a penny wise and pound foolish.

If times are tough and money is scarce, a $100 dollar lunch tab may seem excessive. It might be. From the title of his post in Get Rich Slowly, J.D. suggests $20. It’s probably too low for most cases, but it’s a catchy title and a good post.

More importantly, the actual number is not what matters here. It depends on your industry, your client, the size of your contracts, etc. What matters is looking at the total worth of the relationship from a numbers standpoint instead of an emotional standpoint, allowing for clear-headed decision making.

If you do $30,000 of business with a client in one year, a $100 dollar lunch with her, or even 5, 6, or 7 lunches with her, would be a worthwhile investment.

Don’t let the scarcity mentality drive you away from great investment opportunities in yourself or your business goals. Now is the time to be brave.

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4 Responses to “Don’t be Ruled by Fear: Business Lunches are a Great Investment”

  1. Johanna

    24. Jan, 2009

    Good idea. I guess if the lunch budget is tight, perhaps it’s better to go on fewer lunches with a higher price, instead of several low priced lunches, to avoind having the client think I’m cheap.

  2. Mark Cornish

    27. Jan, 2009

    Johanna, it would depend on the client. Some clients may want to see you wine and dine them, some won’t. Really try to understand what makes your client tick, and gear the lunch towards that. Maybe grabbing a coffee will suffice?
    I do like your understanding that your client’s impression of you is of the utmost importance.
    Happy lunching!

  3. Gray

    04. Feb, 2009

    What about a breakfast? When times are tough breakfasts can be less expensive, get people fresh before busy schedules set in, and have the same impact for less. I tried this recently. It felt less rushed, besides it’s still the most important meal of the day, right?

  4. Craig Peters

    09. Feb, 2009

    You may be right, Gray. The Boston Globe says that people are doing more business over breakfast:

    “The economic crash has exacerbated a generational shift away from power lunches and those mythical three-martini chasers, O’Neill said. Real business is now done early, from 7 a.m. to 9 a.m., over made-to-order omelets and mixed berry pancakes at upscale breakfast spots such as Meritage at the Boston Harbor Hotel.”
    http://www.boston.com/news/local/breaking_news/2009/01/is_the_power_lu.html

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