[Part of the NegotiatingPatternLanguage]
Most negotiations aren't over a single parameter such as price -- there are frequently many negotiable components to a deal. In the context of auto sales (where the name of this page comes from), one finds:
- Value for a trade-in
- Financing
- Options (both useful things, like air conditioning, as well as useless add-ons like undercoating)
- Even the make and model, if you don't care about a particular type of car.
In job-hunting, the following are often negotiable in addition to salary:
- Benefits
- Perks
- Working hours and conditions
A skilled seller can take advantage of this, and make an attractive offer (to the other party) on one parameter, but couple it to an unattractive offer on another parameter (such that the total package is advantageous to the seller). For example, a lowball price on a new car can be met with a lowball offer on the trade-in (if any), or a below-market finance rate can be offered--but only if you pay full sticker price.
Ways to combat this:
- Eliminate additional parameters. Skilled car buyers arrange their own financing with a bank or outside lender (or pay cash), and sell their old car themselves.
- Know the total deal. Rather than figuring out just what price you want, figure out the sum of everything, and negotiate from that basis. Make it clear that while you are flexible on individual components, any dollar deducted from the trade-in allowance must also come off of the price of the new car.
Another car-dealer trick is
SellThemOnThePayment.
CategoryNegotiation
Get Them On The Trade In