Ask for a billie instead of a millie: how Richard Branson loaned 2 billion dollars just after...
Ask for a billie instead of a millie: how Richard Branson loaned 2 billion dollars just after hearing a harsh “no” for a 10 million loan.
In the 80s, Richard Branson came up with the idea that Virgin Atlantic should be the first airline in the world with seat-back entertainment screens.
He and his team were convinced this was something they need to do to get ahead of British Airways. 🚀
(Side note: If you can’t make the planes fly faster or the route to be shorter, you can make the time fly by faster. Altering the perception - a genius move. Sir Branson must’ve known that.)
They did some quick maths and figured out it would cost around 10 million dollars.
They were still a toddler-sized business, so they didn’t have that money. So they went to banks to get a loan.
Crickets. Banks turned them down.
So, one night, Branson was lying in his bed in London.
Trying to figure out how the hell he’s gonna get 10 million dollars.
He wasn’t willing to give up.
He knew that in this commodity business, this could really help their airline to stand out.
Especially to shove it to those bastards at BA.
Suddenly, it hit him.
He picked up the phone and rang Boeing in the middle of the night. (They were on Cali time.)
He asked if they were to buy 10 brand new 747s would they include seat-back screens?
They were delighted for such a query.
As you can imagine, it doesn’t happen very often that someone who is (almost) sane calls you and wants to buy 10 planes.
Ofc they said yes.
So Branson kicked the bank door open once more.
And now asked for 2 billion dollars instead of 10 million.
And this time, got a yes.
Banks were willing to lend them 2 billion when they weren’t willing to lend 10 million.
So instead of getting 10 millies for seat-back screens, they got 10 airplanes with seat-back screens.
10 million is just small boy stuff for banks.
But someone who asks for 2 billion can’t fail, right?
Like Titanic couldn't sink...
So sometimes, just gotta change what we’re asking for to get what we want.
And sometimes, just gotta be outrageous. Go for the big asks.
The conversation will be very different cause the context and mental objections will be very different.
It’s like positioning, certain words trigger certain automatic conclusions. Expectations.
It buckets stuff.
Think.
When you’re buying a can of coke.
You’ll have totally different concerns - objectives - thoughts - than when you’re buying a bulk sale rack of 2-liter Cokes.
And you’ll send totally different signals to the merchant.
It’s all a signals and perception game.