Tips on Doing Business in Germany

In business matters, Germans do not like the unexpected. Sudden changes—even if they may improve the outcome—are unwelcome.

Whether you know German or use your own language, speak in complete sentences. Make it obvious when a sentence is complete; don’t let your sentences trail off. In the German language, the most important word in a sentence is usually the final one. Germans are in the habit of listening for the end of a sentence and can be annoyed if it doesn’t materialize.

The trade fair (a.k.a., trade show) was largely invented in Germany. Germany hosts almost two-thirds of the international trade fairs, so participation in their conferences is key.

Like many things in Germany, advertising is highly regulated. It is illegal in an advertisement to compare your product to that of a competitor’s product. You can say that your product is “#1”, but you will be required to prove that with objective data. If you cannot, your ad may be pulled from the airwaves by the German government.

Negotiating with German people:

• The decision-making process in German firms can be a mystery to outsiders. In addition to the official chain of command, German companies often have a parallel “hidden” series of advisers and decision-makers. The approval of this informal “kitchen cabinet” is mandatory. 
• Directness is appreciated. Germans may bluntly criticize your product or your company; don’t take it personally. 
• Germans abhor hype and exaggeration. Be sure you can back up your claims with lots of data. Case studies and examples are highly regarded. 
• Be prepared to supply reams of information at short notice. Some of the requests may seem trivial; be assured that they are important to the Germans. 
• The German reputation for quality is based (in part) on slow, methodical planning. Every aspect of the deal you propose will be pored over by various executives. Do not anticipate being able to speed up this process. This slowness extends through all business affairs. Germans believe that it takes time to do a job properly. 
• Germans also take a lot of time to establish a close business relationship. Their apparent coldness at the beginning will vanish over time. Once they get to know you, Germans are quite gregarious. 
• German bookkeeping practices historically allowed a high degree of secrecy. It was exceedingly difficult (if not impossible) to get a German company to reveal a true and accurate financial record. Due to new EU requirements, this is changing. 
• Bring plenty of business cards; quite a few Germans may wish to exchange them with you. 
• If your company has been around for many years, the date of its founding should be on your business card. If you have a large number of employees, that number should be included too. 
• Germans may or may not socialize before getting down to work. It is quite possible that you will walk into an office and start talking business immediately after introducing yourself. 
• If your German associates decide to chat at the beginning of a meeting, expect to be asked about your flight, your accommodations, where you are from, and so forth. 
• Business is serious; Germans do not appreciate humor in a business context. 
• When a problem arises, be prepared to explain it clearly, in detail, and unemotionally. You may have to do this in writing. Germans are not accustomed to informally “passing the word.” 
• Never follow the U.S. business habit of saying something positive before saying something negative. This compliment/complaint juxtaposition will sound contradictory to Germans, and they may reject your entire statement. 
• Avoid asking personal questions of a German executive. If a businessperson wants you to know if he or she is married or has children, he or she will find a way to communicate this to you. Family life is kept separate from work in Germany. 
• Germans tend to be well informed about politics and to have firm political opinions. They are also honest and may tell you their opinions about your country (or its actions), even if these opinions are negative. 
• Sports are a good topic for conversation. Many Germans are passionate soccer fans; skiing, hiking, cycling, and tennis are also popular. Less well-known sports enjoyed by Germans include ice-skating, curling, and gliding. 

Taken from Kiss, Bow, or Shake Hands - The Bestselling Guide to Doing Business in More Than 60 Countries (2006) by Terri Morrison and Wayne A. Conaway.

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