4 ms·
I hate these hypotheticals on negotiations. They don’t work unless you come across a “rational” player and the world is full of irrational people. For example,
by lvl102 4y ago
I hate these hypotheticals on negotiations. They don’t work unless you come across a “rational” player and the world is full of irrational people. For example, one lowish starter bid could cut you out of the whole process. Now what? You followed a stupid MBA advice and you shot yourself in the foot. Great job!
- simmerup 4y agoYou have to be willing to walk away to get a good deal. If you’re not willing or can’t take the risk then these strategies aren’t going to be in your interest
- 10x-dev 4y agoAnecdata: I bid 90% of asking price on a house a month ago. Owner got offended (as I was told by my agent) and didn't counter. He then lowered the asking price to 93% of the original. Still didn't counter even though his new asking price wasn't far from what I had offered initially. House is now pending.
- mhb 4y agoI think this idea of a seller being "offended" is far more a fiction in a buyer's mind than actual reality. Think about when you are selling something. Does a too low initial offer offend you and make you unable to evaluate a more reasonable subsequent offer by that person?
- xadhominemx 4y agoSounds like you could use some MBA coursework
- lvl102 4y agoSounds like you could use some game theory lessons.
- matwood 4y agoThis strategy works because people are irrational. The round number vs. not round number are not that different, but they are perceived differently b/c we're all a bit irrational. Pricing is a tricky process of course, but you also shouldn't be over paying or under charging if selling. It's perfectly ok to get cut out of the process in those cases.
- Zenbit_UX 4y agoI personally think it's rational to perceive a round number and a precise number differently. I suggest the problem isn't that we're all a bit irrational, but that we try to apply reason to an irrational process.
- the_gipsy 4y agoThere is information asymmetry in negotiations, you should try to take advantage of it, but it's never a certain science.