Gerald Ratner was the former CEO of the major British jewelry company Ratners Group (now the Signet group). , Ratner was offering low prices on tacky but quite popular pieces in the 80s/ 90s.
In 1991, Gerald Ratner was invited to a conference organized by the Institute of Directors in London (UK’s longest running organization for business leaders). Real family members and people such as Richard Branson attend its conferences Journalists, investors, customers were also present.
That speech has costed Gerald Ratner his business, reputation and fortune. The business of Ratners Group collapsed overnight.
Gerald Ratner forgot some basic principals of negotiation & influence that night:
he was unable to pitch his brand properly,
he forgot that we don’t only negotiate in the comfort of a meeting room,
he breached the contract he had with customers and investors and lost their trust by disrespecting them, and
he forgot that appropriate jokes can be damaging and not everyone can act as funny
This type of gaffe is now called a « ratner ».
