The Art of Bargaining

Nothing drives me crazier than someone asking what the lowest price a person will take for something they have for sale. That is not what I consider the proper way to bargain with someone. It's just insulting. So I will be working on a blog post regarding the Art of Bargaining. I will try to include ways to do it when you are the buyer and when you are the seller.

Bargaining as the Buyer:

1) Know what it is you want - if you are looking for something specific, wait until you find that item. Don't settle because you won't be happy with it.

2) Have a very solid idea of what is the most you would like to pay for that item. Don't go over that limit (as long as your idea is a reasonable one). Do your homework regarding what the cost of something should be.

3) Start below that top price when negotiating. Don't insult the seller with a unreasonably low offer but know that they have probably marked it up quite a bit. Give yourself some bargaining room. And you never know, they might just give you that lower price.

4) If you act really excited about something, the seller will know they have a sucker who will pay whatever they are asking for the item (especially in car dealerships). Be calm.

5) DON'T BE AFRAID TO WALK AWAY. Sellers want to sell - they do not want you to leave because you will likely not be back. If a seller won't come down and it is above your cap, just walk away. You can tell them that you have done your homework and know what it is worth. *this is very effective*

6) Pay cash whenever you can. Seeing the green is very motivating to sellers.

7) Do not ask what the lowest price a person will take. It's just rude and if the seller is smart they will just ignore you because there is someone out there who will probably pay more than you will. Just ask them, "Will you take $____" for this. It gives you a place to start bargaining.

Barganing as the Seller:

1) Know what the bottom dollar for the item is. Base this on worth and age and any money you might have put into it. Also know the market for that item. Don't let someone pay you less than what the bottom dollar is. Try not to lose money on it.

2) Have a full understanding of the product. Be able to sell its desirable qualities. Be honest about any damage present or past. Word of mouth works and you don't want to be labled as the cheat/liar.

3) Understand that word of mouth works. Encourage your happy customers to tell their friends!

4) Don't let someone walk away unless they are being completely unreasonable. Statistics show they won't be back.

5) Be willing to take a good offer. Throw in an incentive if it helps complete the sale.

6) If someone asks what the lowest offer you will take, either ignore them or tell them a price that is about mid-range. A serious/smart buyer knows what something is worth.

That's what I have for now. More to come as I think about it in the coming weeks. :)