On The Art of Negotiation
Posted: Sun Sep 20, 2009 11:41 pm
Greetings:
Scooter parts, like any commodity, have value. It is sometimes difficult to determine exactly what that value is. The parts themselves are sometimes overshadowed by the financial circumstances of the buyer and the seller. Enter the process of negotiation.
The maximum value of a used part must be considered in relation to the price of that part purchased new. Typically used parts can be purchased for around 50% of the new price. A seller might charge a little more if the part is in exceptionally good condition. The asking price is as much a reflection of the seller's mindset and economic need as it is of the condition of the part itself.
The same thing goes for a buyer's offer. The informed buyer might offer something considerably below the asking price, even below the average used price. He may be looking for a screaming good deal, or he may be financially incapable of offering more. The astute seller may graciously decline the lowball offer, but loses any chance for a sale if he takes - or feigns - offense and slams the door on the prospective buyer.
Instead, the seller has several better options:
1. Restate his price, and say "take it or leave it". This approach creates no bad feelings and does no harm to the opportunity for future mutually beneficial interaction. However the seller is likely to have to wait for another buyer.
2. If the seller has any pressure to sell at all, an even better option would be to take a token - say 10% or even 5% - off the original asking and give the buyer the opportunity to come up if he can. Usually the outcome is that the parties meet about halfway.
A lawyer once told me that a fair deal is usually one where neither party walks away completely happy. Keep that in mind when you're conducting business here or anywhere.
Scooter parts, like any commodity, have value. It is sometimes difficult to determine exactly what that value is. The parts themselves are sometimes overshadowed by the financial circumstances of the buyer and the seller. Enter the process of negotiation.
The maximum value of a used part must be considered in relation to the price of that part purchased new. Typically used parts can be purchased for around 50% of the new price. A seller might charge a little more if the part is in exceptionally good condition. The asking price is as much a reflection of the seller's mindset and economic need as it is of the condition of the part itself.
The same thing goes for a buyer's offer. The informed buyer might offer something considerably below the asking price, even below the average used price. He may be looking for a screaming good deal, or he may be financially incapable of offering more. The astute seller may graciously decline the lowball offer, but loses any chance for a sale if he takes - or feigns - offense and slams the door on the prospective buyer.
Instead, the seller has several better options:
1. Restate his price, and say "take it or leave it". This approach creates no bad feelings and does no harm to the opportunity for future mutually beneficial interaction. However the seller is likely to have to wait for another buyer.
2. If the seller has any pressure to sell at all, an even better option would be to take a token - say 10% or even 5% - off the original asking and give the buyer the opportunity to come up if he can. Usually the outcome is that the parties meet about halfway.
A lawyer once told me that a fair deal is usually one where neither party walks away completely happy. Keep that in mind when you're conducting business here or anywhere.