The art of the deal: Jo Horgan, founder, Mecca Cosmetica

Jo Horgan opened her first Mecca Cosmetica store using every cent she had and has not looked back.

Jo Horgan. Illustration: Johannes Leak.

Jo Horgan founded Mecca Cosmetica in 1997 when she was just 29. Tired of the way cosmetics were sold in department stores (with brands in silo-like kiosks and in a very formal, not very customer-focused way), she convinced top niche and independent make-up companies from around the world to let her sell their products in Australia. This year she will open her 100th store.

What is the best deal you have ever made?

The best deals, in retrospect, are getting the right people to join the business, but you don’t always know that up front. Signing the [French cosmetics company] NARS exclusive distribution deal for Australia and New Zealand more than 20 years ago is still the most memorable deal for me. I knew it would be an iconic brand in the future, it was integral to getting the other brands to sign on the dotted line, and they were incredibly tough during the process, so it felt incredibly satisfying when it all came together.

How important is deal-making in business?

Deal-making is integral to Mecca’s success. We have had to secure deals with more than 100 brands, almost 100 landlords and myriad suppliers, and we have had to sustain these relationships over the long term, so creating a win/win deal in each instance has been critical.

What is the secret of making a deal?

I’m not sure there is a secret. Mecca’s philosophy is to keep it simple, be clear about what you need and put context around why. I think it’s important to always put yourself in the other party’s shoes and be creative in your approach to ensure everyone feels good about it when signing on the dotted line. And then do everything in your power to deliver on your commitments. I also try to ensure I maintain a sense of humour throughout.

What’s most valuable in deal-making – charm, research, the psychology of the other person?

I think you have to do your research, know your numbers, be clear what your position is up front and spend time thinking it through at the outset. Being able to be creative in coming up with solutions along the way is key, rather than a binary yes/no approach. I’m a firm believer that there is always a way, you’ve just got to find it. And if you can make the process enjoyable for everyone involved, you are much more likely to get a good outcome.

What are your tips for people on the art of deal-making?

Do your research and numbers and know your position going in, put a clear context around what you are asking for, and ensure you think about it from the other party’s point of view. You must also be creative and adaptable throughout, as well as keeping it simple. Keep your sense of humour intact, leave your ego out of it and do everything in your power to deliver. You also need to build a reputation over time as being fair, open and able to deliver and then future deals become easier.