How to bargain down a price?

September 11, 2009 2:17 AM

I plan to buy a used bike, but have don't really know how to haggle down the price. Advice?

This is a $300--listed--bike, but my budget is considerably lower than that, though I could probably go down to $250 or $275. Obviously, even lower would be great.

But I have had little experience actually haggling down the price and the times I have done so I get impatient with the process. I don't want to be a jerk about it--I'm assuming the seller is just a regular Joe like me. Any tips, tricks, advice?

posted by zardoz to shopping (12 comments total)

Look at the bike. Say it's more than you wanted to pay, point out some problems with bike, and offer 200 (ie, tires need replacement, rust, bad brakes, shit seat or other component, ugly color even). Then, they will scoff and say no way and bring it down a bit. You should be able to get it for 250 no problem.
posted by molecicco at 2:25 AM on September 11

Did you already contact the seller and see the bike?

There are too many variables for anyone here to write up a foolproof game plan, but here are my general recommendations:

1. Be prepared to walk away and/or lose the bike to higher bid.

2. Be assertive and do not negotiate against yourself. Do not start with "How low can you go?" Start with "I will pay X for your bike." If the seller says it's too low, ask them to make a counteroffer.

I never offer an explanation with my bids ("Geez, I'd like to pay $300, but my pet goat just ate my last paycheck so will you take $250?"). Maybe that works for some people, but not me. I do better with a very decisive and business-like approach.
posted by mullacc at 2:39 AM on September 11

I don't agree with skipping "how low can you go?". There is some academic research on this, done for lawyers seeking to mediate an outcome without litigation, that suggests strongly the earlier you can reach an agreement, the better outcome for both sides. It is described as ZOPA - Zone of Possible Agreement, should you wish to google and learn more than anyone could want. If the two sides have a zone they can agree in, the first to nominate a figure in that zone typically feel they have done well, and there is no barrier to a little further negotiation.
For example:
"What is the lowest price you can accept if I pay cash now?"
"$260"
"I was looking to pay around $200, but I can do $240 if you throw in a helmet and a lock"
"I really can't take less than $250, but I will throw in a lock"
"Well how about $230 with no lock?"
etc.

The advantage of this kind of approach is to put a few elements in the deal which can be added and subtracted so both sides can feel they maximise their gain in the negotiation.
And it doesn't feel confrontational, just about feeling your way to an agreement.
One other thing I came across when I last bought a car was intriguing.
The car was $15000, we settled on $13500, then the guy said "and I'll give you an extra $100 off for any unexpected little issues."
Yeah, it was $100 he could have kept, but if I discovered the tape deck chewed tapes or the spare was a flat I would just wear it. It bought him peace of mind that he wouldn't get hassled after the deal was completed, and it bought him some karma.
I was happy to get it $100 cheaper, and thought him a good guy, the kind of guy I wouldn't hassle if I discovered some unexpected minor issue. I think I will take this approach myself in future.
posted by bystander at 3:47 AM on September 11 [7 favorites has favorites]

I often search completed eBay auctions to get a sense of an item's real market value. That way, you can make an offer that sounds something like, "I'm interested in your bike, but I think your price may be a little high. I know you were hoping to get $300 for it, but similar bikes are selling for $250 or so on eBay. Just last week one sold for $237, and it was in great condition. I like your bike, but money is tight so I can't afford to overpay for it. Would you take $250?"

That way, you've conveyed appreciation of the item and empathy for the seller's position, and you've based your lower offer on an objective, impersonal source (the eBay market). More often than not, this works for me. But, you do need to be prepared to walk if the deal isn't good for you.
posted by jon1270 at 3:48 AM on September 11 [1 favorite has favorites]

Seconding the points about being assertive. It's less about body language and tone of voice than it is about choice of words. Don't use tentative language in your bid. In other words, don't ask something like "I don't suppose you'd be willing to take $250?", or "Could you go a little lower than that?", because a self-confident seller will see that as an admission that you'll probably pay more if they say no.

It's important that the seller believes that you've decided what you want to pay already. Something like "I'm willing to offer you X, because I think that's a reasonable price based on other Y I have seen. " will give the impression that you know the value of the item and have a maximum price in mind.

And never make a second offer if the response is 'no'. Ask for a counter-offer. If the seller won't budge, and if their price is too high, then wish them luck and tell them they can get back to you if they reconsider.
posted by le morte de bea arthur at 4:20 AM on September 11

Price negotiation for the last two cars I bought used from private sellers went like this:

Me: Would you take ($500 less than your asking price) for it?
Him: Yes.
Me: Thinking: I should have started lower.

Then the next one:

Me: How firm are you on your price?
Him: Well, I really couldn't take less than ($300 dollars less than the price I was going to try to get).
Me: Done.

So at this point, I'm not gonna be the first one to throw out a number any more. I think that might be important. YMMV
posted by Shohn at 4:52 AM on September 11

You could try seeming pretty interested and then checking that it comes with whatever extras you were 'expecting'.

eg. "Ok, so that comes with a helmet, bike lock, puncture kit, pump?" ect. And then say "Oh..." when they say no. Make out like other people were including these things but appear torn over the fact that you're still really kinda partial to their bike all the same...
posted by mu~ha~ha~ha~har at 5:18 AM on September 11

I've bought and sold a lot of used cars. In the internet age, with craigslist, I've had awfully good luck sending email to buyers saying something like "Hey, I saw your car and it's not quite what I'm looking for, but if you'll accept $xxxx and it's in the condition you describe, I'll give you cash today."

People really like cash today. A LOT. Haggling over email probably doesn't get you the best price, because part of good bargaining is that tinge of discomfort, but it's a good way of establishing a starting point for negotiating before you even show up.

It helps to be way less eager to buy than the seller is eager to sell, which is usually the case.
posted by paanta at 5:40 AM on September 11 [1 favorite has favorites]

I've had the same experience as paanta. I actually just got an old bike off of CL the other day that was listed for $30. I emailed and offered $20, cash, today. Done and done.
posted by craven_morhead at 7:02 AM on September 11

After you state your offer remain silent until the other person speaks. They'll feel the need to break the silence if you just remain silent.
posted by zeikka at 7:08 AM on September 11

In my experience, rule # 1 of negotiating is to be willing to walk away, and make sure the seller knows it.

Rule # 2 is to offer the lowest price that you feel can you can offer without being ridiculously unfair and insulting the seller. And don't be afraid to come really close to insulting the seller with your offer. You just have to be able to say it with a straight face, and then go from there.

The lower you can go, the lower they're likely to counter-offer in an attempt to compromise. Also, don't accept the first counter-offer, even if they say it's as low as they can go. Very few people really mean it when they say it's as low as they'll go, especially if you have cash on hand and are about to walk away. Many times just hesitating or saying you don't think that's quite low enough will be enough to get them to go down further.

Other things can come in handy, like noting problems with the item, etc., but these two things alone have worked wonders for me.
posted by greenmagnet at 8:23 AM on September 11

From my experience selling stuff, it's best to haggle in person, because I've wasted my time waiting around for them to arrive, and want the thing out of the way/clutter, so often I take low-ball offers in an instant.
posted by hungrysquirrels at 2:48 PM on September 11