Haggling

[revsorg]

I sold a domain name the other day to someone I know. He asked how much I wanted, I replied £500, he offered £300 and I accepted £350.

Then yesterday he came back and asked how much I wanted for another domain name. This one seemed more valuable to me so I said £1,000, and he replied with mock surprise "did your zero key get stuck on repeat?" and offered £500. I then suggested £600 and I'm waiting to hear back.

I was talking to my colleague who just got back from holiday in Malaysia and he was saying they haggle all the time there, and he mentioned some of the standard tactics that are used in any haggling scenario, such as the potential buyer walking away in order to reduce the price, and this struck a nerve because now I realise it's exactly what my domain name buyer has just done.

I am aware of the basic rules of haggling, but in the interests of an easy life I tend to pitch in at a lower than normal level in the hopes that we come to an agreement quickly. By the way, one of the factors that makes domain name sale haggling a little different is that people walk away from negotiations more readily than they might in some other circumstances. I guess like any sales scenario there is a strong need to strike while the iron's hot, so it's vital to make a deal as quickly as possible.

If I was haggling properly I would be saying things like "I've got a wife and two kids to feed" and all that stuff, and lower my price in proportion to the way the buyer raises their offer. Until now I have taken the attitude that I just can't be bothered with the fuss, but now I'm starting to wonder whether structured haggling is a social nicety that I should conform to.

[peterjhale]

Don't be afraid to haggle for anything

My local trendy clothes shop where I get all my clothes from now my wife has a say had their winter sale on until last week.

I found 4 Paul Smith shirts I wanted that were 75% off

I asked how much discount they would give me if I bought all 4

They said they are rock bottom any way

I said how much discount for all 4

An additional £25 stayed in my bank account

Do it for everything

[Brian Turner]

Haggling is one of those skills that seems inherent and essential to general business use. I've seen various opportunities for haggling, but it's still not something I'm very comfortable with either. I'm still stuck in the "make customers first, proft second" mentality, which can be fine for a starting busines, but as things become more established the need for pricing flexibility in sales and from suppliers seems ever more important.

Any particular tips from the sales people here, on how to recognise boundaries of haggling? Or pretty much down to experience?

[revsorg]

By the way, the buyer came back and agreed £600. He had to ask the person he was buying it on behalf of, who turn out to be a sizeable UK company in their particular area. I'm still happy with the price we agreed so I guess we're all happy.

Now my buyer has come back and asked me for my 'best price' for a further 8 domain names. This time I gave what I think are realistic post-hagging prices, but my worry now is that he will still expect to haggle. Now when he goes quiet I know to just sit and wait him out though. Previously I was on the verge of cracking and just offering a lower price.

[bizal]

revsorg



Can I work for you as your seller and I will split the difference?



Other



Walking away is great but if the person has any nerve it will not help.



Remember if buying , show it is worth less, i.e. I can get it for x but it will take a week/ will cost me y to get it, so lets compromise so that we both win. Is a new model, version due out? If so that is also a common tool because the 2nd hand price will be a lot less ( works very well with software/ cars). How much extra/ less is the step or down product and make them justify the difference (a classic case is feature based products that have a range).

Oh and never rush and need it today even if you do!!!



Sellers



For every step down get commitment i.e. repeat business, referrals, higher volume etc.

Let them talk

Do not panic

Show value
Payment terms

[peterjhale]

saying nothing is actually a very powerful technique (you'll see it on TV interviews a lot)

[revsorg]

bizal - split the difference between what???

Peter - I practice the not saying anything technique - if someone asks to buy a domain name I don't tell them it has any value for any particular reason, on the assumption that their own motivation to buy it is enough.

[Steve-H]

I normal use the walk away tactic, if they want your business they will call you back. Doing research also helps if you are not buying a unique product. Find a cheap supplier then present the price to another supplier and they will usually undercut.

[bizal]

revsorg

The difference between what you would take for the domain and what we could get!!

[Brian Turner]

I actually attempted haggling at a car showroom a few weeks back - there was a car in the model I liked, but just over what I was willing to spend.

I asked if it came at under £10,000. The salesman then claimed that the car was £13,500. I actually had to walk him 20 yards to where the car was plainly priced at £10,900 - and pre-registered, too.

So when I asked again the salesman flatly told me "no". I walked away because the guy had been wasting my time, having already tried to sell me a cheaper model for a similar price, which I wasn't even able to look at.

Maybe worth going back and seeing if I can get a different salesman.

Seems like it takes real experience with haggling.