I learned this technique from an ancient Umatic (3/4 inch) video cassette. It was produced to assist car dealerships in getting the most money from trade-in sales. I don't know if car dealerships still teach this, but I've never had it fail me, yet.
Here is how it works in the video. Someone wants a thousand dollars for their trade-in. It's worth a thousand dollars, but you don't want to pay them a thousand dollars. You only want to pay them six hundred dollars, which they have already turned down. You let them see you think about it and then you pull your money out of your pocket. Into their hand, while counting, you put a one hundred dollar bill, then another, then another, then another . . . you hesitate . . . you slowly give them one more hundred dollar bill . . . and then add one more hundred dollar bill, and stop. You think about it and then say something like, "No, I'm sorry I know it's worth more than that, but that's all I can afford to pay." You have placed them in a predicament. They have six hundred dollars in hand. Ready money. Hard cash. You reach out to take it back. What do you think they do? No one ever, ever, ever wants to give back money. They pull it towards themselves. In that one little action you've made the deal. You just bought their trade-in for six hundred dollars and gave yourself a 40% discount.
The first time I used this technique was to buy a gold necklace for my wife. I slowly played out the money and bought the necklace for my price. I've done this for over twenty years from antique stores and car lots to negotiating tables. The technique works well with variations and for all kinds of transactions.
Years ago, I needed to update my video production studio. I saw an ad in a professional video magazine for a complete television studio: two cameras/recorders, two video tape recorders and a controller for editing. They were a few years old, but in tip top condition. They were being offered for about ten percent of their original price. This was a super deal at $21,000. The ad also mentioned O.B.O (or best offer). I knew I could deal with this. I made arrangements to fly from Washington State to Texas. The producer picked me up at the airport and took me to his studio and showed me the equipment. We then went to a restaurant for lunch on the way back to the airport. The equipment was in great condition. It was a super deal. I asked him for his best price. He gave it to me: $16,000. I told him that was a great price, a fair price, and worth every penny, and I was sure that my partners would agree to that when I explained about the quality of the machines when I got back. I then mentioned that I had a money order with me for a price that I was authorized to grant right then, but it was much less than the value of the video equipment. I pushed it over to him with an apology. It was four thousand less than his best price. The money order stayed in Houston. The video equipment went to Washington.
The reason this technique works is because people know how hard it is to find someone who wants to buy what they have, and once they have cash in hand, or a money order, they just can't turn it away. It's easier to complete the deal then it is to turn it down . . . even if it means making a little less.
No One Ever Wants to Give Cash Back: You Can Profit! - To learn more about this author, visit Don Doman's Website.
Like this article? Share it with your friends
 |
Related Articles |
|
 Selling Your Franchise: What Are Your Rights?
|
| |
Would you like to sell your franchise? Easy enough in theory, but not necessarily so easy in practice – the terms and conditions for selling your franchise are outlined in the Franchise Agreement, and Franchise Agre...
|
|
Where Did All My Cash Go?
|
| |
We hear this all the time from small business owners. They look at their Profit & Loss statement (a.k.a. Income Statement) which shows all this activity in their business, and yet their Balance Sheet (and checkbook)...
|
|
Cash Flow for Real Estate Investors
|
| |
CASH FLOW. While all the deals and purchases are happening and capital is tied up and things happen in the normal world of the real estate investors, they sometimes have cash flow challenges. And the fastest and bes...
|
|
Profit and Loss Account Statement
|
| |
In the earlier article we have covered the balance sheet. In this page we will talk about the subject of "Profit and Loss" statement. These two statements along with cash flow statement are the most important compon...
|
|
What is Discretionary Cash Flow
|
| |
The process of buying or selling a business inevitably brings up the concept of discretionary cash flow. Sometimes called owner's benefit or adjusted cash flow. It's critical for any buyer or seller of a business ...
|
 |
Related Businesses - Evan Elite Authors |
|
Leanne Hoagland Smith
Are you or your business where you want to be? Are you facing constant struggles in business or life in general? Would you like to "unlock" those obstacles keeping you from greater business or personal success? As your results partner, we can work together to unlock those desired results by achieving tomorrow's solutions today. Let’s use your strengths for real change through proven and affordable solutions where the real problems are identified. Are you seeking loyal customers, great attitudes, increased sales, improved profitability or just some sleep filled nights? Then we should talk because my clients have experienced exactly those types of results. Learn more about customer loyalty at http://www.processspec ialist.com/customer-loyalty.htm Give me a call 219.759.5601 for a free strategy session. I look forward to speaking with you. P.S. If you are seeking a motivational speaker, sales trainer or small business expert that will leave your audience smiling and remembering, please feel free to contact me at 219.759.5601. - Visit Leanne Hoagland Smith's Website |
The Evan Elite Authors program is currently in beta phase. For details please contact us.
|
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
