On the 14th of October, somebody in the UK stole a huge amount of cheese. To be more precise, they stole 22 tonnes of it! This, of course, begs the question, why? A view reinforced by a cheesemaker who said, “It’s ridiculous, out of all the things to steal in the world – 22 tonnes of cheese?”
When we explore the background to this further (something great negotiators always seem to do) the reasons become clear.
Food-related crimes are on the rise; The World Trade Organisation reports the cost to the global food industry is between £23-£38 billion a year, according to the World Trade Organisation. Several food crimes have also targeted the cheese industry - particularly “luxury” cheese.
Cheese is becoming more valuable (“commodity” doesn’t necessarily mean low value), and prices have risen nearly 25% in one year. Part of this is down to the energy-intensive process through which it is made. A specialist in the cheese-making industry suggests that “based on price alone, cheese is one of the most desirable foods a criminal can steal.”
In the above situation (dubbed “The grate cheese robbery”), a 63-year-old man was arrested in London and released on bail. The 950 truckles of cheese (roughly the weight of four full-sized elephants), were collected by a courier, taken to a depot and then disappeared without a trace. Presumably, the cheese was distributed for a high price across the black market in the UK and overseas.
The lessons for negotiators here are three-fold.
Consider the cost of your concessions (cheese, in this case), but more importantly, what is the perceived value to the other side? Price (and protect) your concessions accordingly.
Make sure you regularly reassess the value of your concessions – other factors can increase or decrease their value.
Your payment terms should reflect your business relationship and the nature/size of your transaction.
Apologies to Spencer Johnson, who wrote the acclaimed management book in the 1990s – ‘Who Moved My Cheese’. For those who haven’t read it, the book provides a symbolic story for managing change, which can apply to various potential changes in a business environment.
Hopefully, this won’t affect the price I’ll pay for Stilton this Christmas!
Sam Macbeth, 13th November 2024
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