Flea Market Negotiating

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Setting:

I was looking around at a Flea Market in Dayton Ohio sometime in early 1993. Marieta loved going to these things and I was just tagging along as usual. But, I’m glad I went because I learned an extremely valuable lesson. One that has stayed with me over the years and has probably made and/or saved me a lot of money. It’s so simple, but highly effective. I took a little hit to my pride and my wallet that day, but the resulting lesson was worth it. The lesson came from a man selling tools. He simply brought to light my poor negotiating skills. I walked away from his table a bit dejected, but I should have been jumping up and down thanking him for his invaluable teaching lesson. Here’s the story.

A Lesson in Negotiation:

“Wow! Look at these tools”, I exclaimed. “I’ll get this one. Oh yeah, I need a wrench too. These screwdrivers should come in handy.” I was excited about getting my hands on some much needed tools and about getting them at a nice low price. Thank God for Flea Markets!

After collecting all my tools purchases, I added up the total. Each item had been priced and the total cost came up to about $14. I then thought for a moment, “Hmmm, since I’m buying in volume, why not ask for a discount.” So, I swaggered up to the merchant and as nonchalantly as I could, offered my proposal, “Would you take $12 for all these tools?”

Here’s where the vendor gave me his lesson. He unabashedly pointed out my lack of negotiating skills. I was expecting him to haggle with me. But, he wouldn’t hear of it. His response was outside of my expectations. He simply looked up at me from his comfortable seated position and stated – loudly enough so his buddies and anyone in proximity could hear – the words I’ve never forgotten,

“I would have taken less, but since you’ve offered $12, then $12 it is!”

Backfired

My heart sunk as I knew I was paying a higher price than necessary. My ploy at negotiating had backfired and it was on display for all to see. The vendor and his buddies had a good laugh as they saw my jaw hanging and my lips quivering as I tried to think of something clever to say. But, nothing came out. What was I going to say? “How, much less would you take?” He’d just come back and say, “I’ll take the $12 you offered thanks!” My pride wouldn’t let me walk away. Besides, I wanted the tools and I was getting them for less than the listed price, so it wasn’t so bad. I’d made an offer, he accepted, I paid him.

Inexpensive Lesson

Although I didn’t appreciate his style, I am forever grateful to this Flea Market vendor for the valuable lesson he taught me. I didn’t like his style because he could have let me think I made a smooth bargain. But, he chose to point out my blunder. Even though I felt I got a good buy, he told me the truth – he got the good deal. He got more money for the items than he would have otherwise accepted. I’m grateful because this precious lesson only cost me about 4 or 5 bucks! But, it’s worth millions.

What did I learn?

The lesson is very simple but very important; don’t be the first to offer a price. Whenever possible and practical, have the other person offer a price first.

If I were to be in the Flea Market situation again, I would walk up and say something like, “Since I’m buying in volume (a little humor), would you offer a discount off the marked price?” It really doesn’t matter what answer comes back because my goal is to get a feel for the vendors lowest price. If he says, “I’ll knock a dollar off just for you.” I could counter by saying, “I was looking for a much better deal. Tell you what, why don’t I put them back and I’ll look around some more and maybe come back later.” Usually, the vendor wants to cut the deal right then and there. They don’t want to see if you’ll come back later. Now, the ball’s in the other guy’s court. It wouldn’t be unusual to hear a response along these lines, “You give me 10 bucks now and they’re yours.”

What if you’re the guy selling the tools? You’re always at an advantage because you know your lowest price. The rule here is never go below your lowest price. Let the buyer walk if you can’t get your lowest price or better. But, the rule is the same. Let the buyer do the talking not you. Think about it, you’ve already played your hand by setting the price on the item. Let the buyer do the talking to find out his highest price.

If I was selling at a Flea Market and a buyer approached with my “buying in volume discount” request, I might respond by saying, “What’s it worth to you?” I already know how low I can go. My job is to find the buyers highest price at or above my lowest selling price. If my customer is sharp I may hear something back like, “It’s not worth what you’re asking price, what’s the lowest you’ll go to get me to buy it right now?”

Ask Questions

I must resist the urge to name a price. I know, it’s hard, but I must do it or I’m taking the spice out of the exchange. A little discipline will take you a long way. I might reply by repeating the customer’s question, “… Not worth the asking price? How do you figure?” This forces the buyer to justify his/her statement and may lead to a settlement. The buyer may be getting tired of the dialog and say, “I’ll give you $12 for the lot.” Then I might think to myself, “I was willing to let it go for $10, so his offer is great.” But, I wouldn’t say it. Instead, I’d rub my chin and get fidgety and say something like, “Well, I normally don’t like to give that big a discount but you are buying several items and I could use a sale right now so, I’ll take it.”

Now, everybody wins. The customer has negotiated a discount off the marked price and I’ve gotten a higher price than my minimum price. And, my customer leaves feeling he’s cut a pretty nice bargain. Customers like to feel they’ve got a good bargain; I know I do.

Why such a big deal over a few tools?

You may be asking yourself right now, “Why is he making such a bid deal about a nickel and dime exchange at a Flea Market?”  And, here’s how I’d answer …

Because the lesson is the same – and even more critical – for big ticket items!

I wouldn’t want someone negotiating for me on a big ticket item who didn’t understand this “don’t offer a price first” concept. It could cost you thousands or even millions. A few well placed words here and there and you could save yourself a bundle. Don’t ever underestimate the power of small learning opportunities. My real life Flea Market experience taught quicker and was harder hitting than any lesson I could learn from a book.

Head out to your nearest Flea Market!

So, I encourage you to go out soon to your nearest Flea Market, garage sale, whatever and get some experience negotiating. It’ll be more valuable than just reading it here.

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