Jump to content
The Klipsch Audio Community
DizRotus

NEGOTIATING STRATEGIES and ETIQUETTE

Recommended Posts

9 hours ago, 314carpenter said:

I will walk away over >$25. Done so many times.

 

I agree.  Early on in my encore career I “fired” a customer due to a difference in negotiating philosophies.  IIRC, he was a buyer for Chrysler, so he was used to negotiating.  I got tired of, “Can you do any better?”  I told him, “I could give it to you, but then who will feed my family?”  After about a week he called back to “accept” the deal he had previously rejected.  I advised him that deal was no longer on the table. He was incredulous.

 

This thread is not offered to criticize any individual strategy, but to offer my take on the process.  It was prompted by my recent experience dealing with a customer’s desire for a “ballpark” estimate which allowed both sides to determine whether actual negotiations would be worthwhile.  Neither of us was being asked to make an “offer.”  A real offer was made and accepted only after we met and discussed specifics.  That meeting would not have occurred had we not first successfully addressed a budget.  If our customer had gotten offended by what he would have incorrectly interpreted as being asked to make an offer, it would have ended there.  We both would have lost.

 

Some enjoy the gamesmanship of negotiations, others do not.  My negotiating experience is based on many years as a prosecuting attorney negotiating plea deals with counsel for murderers and armed robbers, and decades defending medical malpractice cases.  The personalities and egos of many attorneys often  made negotiations acrimonious, so I learned to make every effort to look past that.  

 

I do not take offense if the seller of used speakers explores, no matter how clumsily, my budget.  I understand that by stating something like, “The most I’m willing to spend for speakers that exactly meet my expectations is $1,000,” is NOT being asked to make an offer.  No one is locked in by the process of exploring the budget range.  If that process offends someone, then a deal cannot be negotiated.

Share this post


Link to post
Share on other sites

When I sold my house, I knew exactly what it was worth. I asked the realtors to list it for that price, but they insisted on inflating the price by several percent.

 

The first offer was not only below the ask, but also below what the house was worth. I countered with price that it was actually worth.

 

The buyer countered with another low offer. I gave them a one-word answer: "No." 

 

My realtors and the buyer's realtors were all surprised by my response, but the buyer met my price. He knew what the house was worth, too.

 

 

Had the house been on the market for a few months, I would have had to figure that the house wasn't worth as much as I thought. But that's not how it played-out.

 

 

  • Like 1

Share this post


Link to post
Share on other sites
10 hours ago, jimjimbo said:

Oh, you mean the Covid 19 thread?

 

Oh I haven't even peeked in on those threads. I know a dumpster fire thread when I see one..

  • Like 2

Share this post


Link to post
Share on other sites
1 minute ago, Thaddeus Smith said:

 

Oh I haven't even peeked in on those threads. I know a dumpster fire thread when I see one..

You're usually right smack dab in the middle if it shoveling coal.

  • Haha 1

Share this post


Link to post
Share on other sites
1 minute ago, CECAA850 said:

You're usually right smack dab in the middle if it shoveling coal.

 

giphy.gif

  • Like 1
  • Haha 1

Share this post


Link to post
Share on other sites

I enjoy some negotiating and expect it and over the many years of buying/selling hifi gear it seems most others feel the same. I always build in a little “negotiating room” cause I know it’s coming. Just recently I bought two amps - one budget piece for background music only and another from a noted builder/brand. IMO both were priced fairly, one very much so, so I bought them at asking, I was satisfied. 
Just yesterday I sold a fairly expensive motorcycle and opted to negotiate my price which in this time of Covid made sense to me. Both buyer and seller always have a point of view on price/value/necessity. For me and the wife we hardly ever rode the bike long distances any more, only one short ride in over a year. And each year the bike is worth less, and then maybe a new battery, and so on. So we decided even at a negotiated price the money was best used elsewhere. Considering the options and today’s economy I actually was surprised at the close enough offer. So many don’t have $$,$$$ just lying around these days — 

Share this post


Link to post
Share on other sites

I don't negotiate very well. If I have a $100.00 bag of gold coins for sale and get offered $50.00 I say "OK".

JJK

  • Haha 2

Share this post


Link to post
Share on other sites

A salesman asked how much I was wanting to spend for an RV.

Told him I do want to spend anything, but I needed the RV.

He just laughed.

 

 

  • Haha 1

Share this post


Link to post
Share on other sites

I’m willing to negotiate but please present an offer - we can go from there. I’m asked “how much will you take”? And I answer - “please make an offer, I don’t negotiate against myself”. 

Share this post


Link to post
Share on other sites

Perhaps I’m doing a poor job of articulating what I see as the difference between “qualifying” a potential buyer and the actual negotiating process.  In my example above, without a general agreement that the seller and buyer were in the same ballpark, there would not have been negations that resulted in a sale.

 

Whether widgets or Jubilees, I feel it is appropriate to establish a general agreement regarding the potential budget.  Without that, a buyer with a Heresy budget is wasting everyone’s time negotiating for Jubilees.  A potential buyer who is insulted by a perception that he/she is being asked to make an offer will miss out on what could have been a good opportunity.  Articulating your maximum budget for perfect speakers is NOT a legal offer.  If it demonstrates to the seller that you’re more than a tire kicker, you will get an opportunity to negotiate for real.  It’s likely you will then be able to explain to the seller the ways in which the speakers are less than ideal, therefore, not worth the maximum of your budget.  You and the seller, at least, have an opportunity to reach a mutually acceptable deal.  That opportunity is lost if the potential buyer is  insulted by a reasonable request to qualify the buyer; insulted by the opportunity to demonstrate that she/he is a serious buyer.

Share this post


Link to post
Share on other sites

The stated listing price should let the buyer know if the item is within their budget.

 

If I list a pair of speakers for $X then the prospective buyer needs to ready to spend  $X. I might be negotable in person or maybe not. It all depends on how the test drive goes.

 

It's the same when I'm buying a pair.  Sometimes I'll try to negotiate somewhat over the phone or emails but it's mostly to see if there is wiggle room.

Share this post


Link to post
Share on other sites

Though it has been quite a while since I listed anything here or anywhere for that matter, I always price my goods to sell them, not to negotiate.  Now negotiating is not out of the question but I do pretty extensive market research before pricing and always include bomb proof packing, Fed Ex shipping, and all fees included in the price stated.  Of maybe 100 items I have sold, only a handful of buyers ever asked for me to lower the price and some of those times were for a cash price in person.

 

Also, most of those transactions followed phone conversations where we both felt comfortable enough to go through with the deals.

 

Bill

  • Like 1

Share this post


Link to post
Share on other sites
On 5/25/2020 at 11:01 AM, veloceleste said:

If you think you got a deal, you got a deal!

 

Exactly. When I sold for a living my happiest customers were not happy because they negotiated every dime out of the deal. In fact, those customers were almost always the least happy ones. The happiest customers I had were almost always the ones who saw that the value in the product was greater than the value of the money they paid. Regardless of the level of profit for me. Those sales are always win/win. Whether it is because I did a good job of building value, or because the customer perceived the value is debatable. What is almost without exception is the customer who feels like the deal was good, is happy. Those negotiations are always handled with respect.

 

Value is not binary. Take used heritage speakers for example. A spreadsheet may say that some Heresy 1's are valued at $400 (as an example). The value of that speaker to the seller and to the buyer may be completely different than the spreadsheet making it nothing more than a talking point. At the point in which the buyer sees the value of those speakers as equal too or greater than the sellers price, the spreadsheet no longer matters. 

 

I ran into this multiple times a day in the car business when people came in loaded with all the latest trade in values and invoice for whatever they wanted to purchase. Those numbers are not binary numbers. There are many MANY other factors to consider.

  • Like 1

Share this post


Link to post
Share on other sites

There is a guy on AVS who moves through a lot of good quality gear and I like his style.  He will list an item for lets say  $1500 bucks, which is a decent buy.   It sits there for a week or two, then he will give it a bump and say, "OK, lets try $1400".  Maybe another week or two goes by,  a bump, "OK, lets try $1300".  Usually, after a few times of this, he finds his buyer and the item disappears.  He's not tied to a number, his interest is in moving it.  

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...