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No One Ever Wants to Give Cash Back: You Can Profit!

Written by: Don Doman

Article Overview: People know how hard it is to find someone who wants to buy what they have, and once they have cash in hand, they just can't turn it away . . . even if it means making a little less.

No One Ever Wants to Give Cash Back: You Can Profit!

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.

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