By negotiating more often you not only put more money in your pocket but also increase your negotiating skills. You’ll also soon find that bargaining can be a very profitable and fun way to spend your time whether buying or selling. Here are 10 ways to focus on this week to better your bargaining position…
Mistake #1 Being Afraid to Bargain Some people are a bit shy when it comes to negotiating because they’re afraid of being rejected. In reality, there is no rejection in negotiating. The power to choose is now in your hands. You have the choice of continually paying full price or take your business elsewhere. It’s up to you as your in control.
Mistake #2 Everything is Negotiable Great bargainers are constantly aware that anything is negotiable under the right circumstances. You would be surprised to find what others will do to earn your business as long as you keep in mind there must be a benefit of doing business with you.
Mistake #3 Believing It’s Not Worth Haggling Over Small Items Many Americans only think about negotiating when it comes to big ticket purchase itmes like their homes and automobiles. The real savings will come when you get discounts on things you buy more frequently.
Mistake #4 Thinking About Ourselves First Many people only consider the benefits they’ll get out of the negotiation. Real bargainers are always thinking about what’s in it for the other person to accept a deal, not what’s in it for themselves. They know that if there isn’t a clear benefit to the other persons interests they will never seriously consider an offer. Find ways to help people solve their problems and you’ll make it easier for them to give you what you want. Most businesses make their money on repeat business because this eliminates marketing costs. If you’re a regular customer, then you deserve a discount for saving them money. I usually give commission discounts on repeat business and the business always comes back around.
Mistake #5 Making the First Offer Try not to make the first offer anytime you bargain because it limits your options. Even when the price is clearly marked, you should ask, “Would you take less to sell this today?” If you are the buyer making the first offer, it sets the lower limit because now you can only raise your price. If you are a seller and you name your price you’ll only be able to go down from there.
Mistake #6 Being Too Nice If you must make the first offer then make it a very low one when buying and a very high one when selling for the reason stated above. You’ll be setting the lower or upper limit and reduces your options. Being aggressive with your first offer leaves room for negotiating. Don’t worry about being nice as the other party can only say “no.” You never want the other party to agree to your first offer because that leads to the next mistake.
Mistake #7 Being Too Eager In America “time is money” but in other countries it’s used for building relationships. You never want to hear “okay” too early in the negotiations. This means you paid too much or asked too little of a price because of impatience. Take your time and don’t put any pressure on yourself. This is primarily geared towards big ticket items like a home or new car.
Mistake #8 Not Doing Your Homework In Advance If you’re buying a car, search the web to find the dealers costs, when the new models are due and if there are any bonuses or incentives available. Many buyer’s research my web site MiamiDreamRealty.com first to determine home values and available competition. No matter what you are buying or selling you can find very valuable information first online to prepare yourself.
Mistake #9 Not Playing To Win You should always try to get the best deal you can and assume the other party is doing the same. You don’t need to be concerned with fairness because if they agree with your offer they must feel it would benefit them as well.
Mistake #10 Missing Opportunities To Negotiate Every time you pull out your wallet ask yourself, “Is this a chance to fine tune my bargaining skills?” This doesn’t mean that you must bargain on everything you buy but every transaction does add up and the more you bargain the better you become saving you thousands each year.
Article inspired & derived from AgentDirectNews.com January 2008. If you’d like an experienced negotiator on your side when buying or selling in Miami Beach, Bal Harbour and Sunny Isles real estate call me for an interview. I’ll show you how to make the process stress free and results driven. Also, if you’d like new blog updates once available, you can be notified by email (automatic updates sent to your inbox) or by RSS feed (see upper left column) each time a new posting occurs. 1.888.38.DREAM