Thursday, August 7, 2014

How Not To Negotiate 100% Of The Time

Everyone Wants A GoPro Camera and Everyone Will Pay Full Price!

I decided to test the market  for a brand new GoPro Hero3+ Silver Edition that I came across by way of sales contest only because I knew that if I kept the camera I would not use it to its full capacity. .   I did my research and found out that even the deep discounted online retailers were selling the GoPro Hero3+ Silver Edition for a minimum of $299 brand new and $280 used in addition to shipping and handling where applicable. 

The item was listed on Craigslist for $280 obo which I felt was a fair price based on my research and the fact that there was not a warranty or exchange policy.  

Here was my actual ad from Craigslist. Thank you for dealing with the curious backdrop which is a result of the copy-paste job.


Life's Adventures Are Meant To Last Forever

Capture Them With One Of The Best Cameras On The Market!

(NEW In Box) 

For a limited time you can own a BRAND NEW GoPro Hero3+: Silver Edition for the price of a lightly used GoPro Hero3: Silver Edition. This camera is priced to sell. Call Now!!!

Whether you are an outdoor enthusiast, new parent, like to catch life's finest moments in the best way possible, etc this camera can help you capture these moments and then some. Item is BRAND NEW, wrapped in box and comes with tripod. 

Here are some other features that you will benefit from with your new GoPro HERO3+ : Silver Edition:

* 15% smaller and lighter housing (waterproof to 131'/40m)
* 2x faster image processor enables 1080p60 and 720p120 fps video
* Enhanced low-light performance
* 30% longer battery life

* Professional 1080p 30 fps, 960p 48 fps, and 720p 60 fps and WVGA 240 fps video capture
* 11MP photo capture with 10 frames per second burst
* Wi-Fi built-in, and compatible with Wi-Fi remote (sold separately) and GoPro App (free)
* 197-Feet / 60m Waterproof Housing
* Basic mounts and hardware included for attaching to helmets, gear, and more

This camera can be purchased for approximately at retail for $299 (+ Tax + Shipping where applicable) or you can get it today for $280 obo. Act Now....... Your Permanent Adventures Awaits.....Priced To Sell


There were plenty of responses to my advert.   There was a lot of interest.  There were some folks that were actually looking for a different edition of the GoPro, some folks that didn't want to drive to my general area of town to meet and pick up the camera and a large number people that couldn't afford  or wanted to pay the fair price for the camera.   Eventually the perfect buyer came to me and purchased the camera for full asking price.

Of all the dealings there was one person texting from a California code that really stuck out, we will call this person Cali going forward.   There were some things that I did like about the interaction and other things that I didn't like especially the subtle negotiation faux pas that were exhibited by Cali,  the potential buyer.    Here is the actual text interaction which starts after I informed the Cali that the camera was still available for sale::

What are your thoughts?   Did you think the buyer (yellow) do a good job negotiating?   I'll tell you this, they  didn't buy the camera  for $250 cash before they left AZ.  

What The Potential Buyer Did Well

  • At 0914am Cali opened the negotiation off with a $200 offer.   This is a positive because in a negotiation one always wants to ask for more than one expects to get just because you might. 
  • At 0101pm Cali created a sense of urgency by saying that they were only going to be available for about an hour.   This is a positive because when dealing with a desperate buyer that really needs the money this one piece of information could have been just what causes the seller to accept an offer.

What The Potential Buyer Could Have Done Better

  • At 0914am Cali started our interaction with a low ball offer of $200.   The reason that this was a low ball offer was because of the value of the item which could have been quickly researched online prior to the interaction.    This is a potential negative in a negotiation because one must not put themselves in a position where they insult the potential buyer because if the buyer has something that you really want they may walk away. 
  • At 0101pm Cali told me that they were leaving AZ in an hour.    This is a potential negative because the value of the item was clearly spelled out at 0917am meaning that trying to narrow down the negotiation by creating a sense of scarcity on Cali's part probably wasn't going to work here unless there was a full price offer or better on the table. 
  • At 0101pm Cali told me that they could pay no more than 250 cash.    This is a potential negative because the other party in a negotiation doesn't care about how you can't pay a fair price for an item because a business negotiation is usually not about charity it's about creating win-win.   If Cali only had $250 budgeted to purchase a camera then they should have been looking for a camera in a difference price point. 
  • At 0101pm Cali also implied that they wanted to look at the camera to see if it works.   Hmmmmm, interesting.   Obviously Cali missed the part about the camera being brand new in it's original housing. Granted a new item may not be fully functional 100% of the time but that is a risk that you take when you buy an item for $20 under the asking price.   Making outrageous demands in a negotiation is a potential negative because you can alienate the buyer especially if they have other options or are not in a hurry.
Negotiations are a beautiful thing because now two are the same and there is usually at least one interesting thing that happens that just makes you wonder.   Share your thoughts\experiences below. 

Until we read again, 


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