Three Tips for Negotiations
8 January 2008
One Comment
Who wants to pay full price, whether on a major real estate deal or on a can of beans? But there are only a few options to avoiding the price tag: You can wait, and hope that the price drops, taking a chance that your opportunity to buy will disappear entirely. Or, you can negotiate the price downwards.
I’d love to be able to point you to a step-by-step set of rules for negotiating. Unfortunately, there really isn’t one. The only way to learn to negotiate successfully is to get out there and start asking for lower prices. You’ll rarely get them, at least at first, but you can open the door for asking for a compromise that saves you at least a little money.
Although there are no hard and fast rules for negotiating, I can offer up a few tips for the grand art of negotiating.
Be emotional. Don’t go so far as letting your emotions rule the conversation, but if you can show that a high price makes you a little annoyed, you will have a better chance of convincing a seller that you just won’t pay such a high price.
Back up claims. A store isn’t going to take 10 percent off, just because you asked. If you can show that an item really isn’t worth full price (a dented can or a shirt with a small tear), your seller may decide that it’s better to sell it at the lower rate. You may need to do some research to be prepared to back up your stance.
Walk away. If you aren’t going to be able to negotiate a comfortable compromise, walk away. Make sure that the seller knows that you’re willing and able to do so, from the start of negotiations. While a seller might be the best option, it’s rare that he is the only option at all.
I know that negotiation isn’t my strongest point. It’s something I’m working on. I’ve been plenty of places where paying the original asking price marks you as a tourist, or worse, some kind of chump But I see its value every day: whether a person negotiates a car price down or gets a store to take 10 percent off of display merchandise, she’s making her money stretch just a bit farther. Even better, negotiation can help you bring in more money — by negotiating your salary or fee upwards.
Great post Thursday. #2 is very important. I’ve been to so many car negotiations with family, and in typical Asian fashion, they low ball the dealership beyond imagination. They have absolutely no reason for such a low ball offer other than the fact that its what they feel like paying..The negotiations almost always end with nothing accomplished and even some hostility. Backing your claim and giving a valid argument is what negotiation is all about. Sometimes we forget that. I always remember that, especially in real estate negotiation. If theres a deal on the market, its better to pay full price and snag it then to try to low ball and have another savvy investor steal it from right under your nose.
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