When making an offer to buy something where the price is not firm or set, make sure you don’t start at the price you want to pay for it. Start low. If you start at the price you want to pay for it, you are most likely going to pay more because that will be looked at by the other party as your “first offer.”
For instance, say you want to purchase a used car and there’s an ad for the car that says $10,000. You check the Blue Book and see that it’s valued less than that. Make sure you decide in advance what your minimum and maximum will be. You also have to decide what your walk away point is and be firm with that within yourself before discussing any deals.
Let’s say you decide you are willing to pay $9,000 for the car. If that’s the price you want to pay for it, don’t start at $9,000, the other side will negotiate you up from there and you will end up paying more. You could agree at $9,500 and then you’d be paying $500 more than you set out to pay.
Start lower than the price you want to pay so you can have some leverage and room to move up towards your $9,000. Maybe you would offer $8,000 or $8,500 and work from there. That gives you some room to maneuver within your budget.
This works on non-monetary type things as well. You may be discussing who will handle a project or who will handle what part of it. Maybe you are discussing deadlines and need to negotiate for more time. You never want to put your bottom line out as your first offer or you will end up agreeing to more.
Always start low in order to negotiate a better deal for yourself.
See you next week!
Eldonna Lewis Fernandez, MSgt USAF Retired