My Grandfather sold cars in the 50's, and then insurance until the 80's. He had a love of wheeling and dealing, flea markets, auctions, and coffee shops. He taught me a few tricks that have done me well. and I fell I can do some good sharing a bit of his wisdom. Feel free to share your own. If you are trying to sell something, put a price on it that's 10% more you want. Don't expect a potential buyer to put an offer on it because it will always be a low ball figure. Be willing to settle a price for 5% less than you want. People offering you 60% or less will be told no outright, while offers above 60% will be countered. If you are trying to buy something that someone doesn't have for sale be prepared to make an offer on the spot. Be fair and don't low ball if you seriously want the item. Sometimes you will get lucky and the seller will give you a price right off the bat but not always. On the same note if someone wants to buy something of yours and you don't particularly want to sell make them give you a figure. If you really don't want to sell its still fun to watch them sweat a second or two. If you are buying something that is for sale (with known asking price). Make your starting offer 10-20% less than you are willing to give. Be able to walk away but also if you know you have a good deal then jump on quick. Never gamble with more than you are willing to lose. And end all deals in a Handshake. A Handshake is your bond, your honor, your word, and your integrity. Make it mean something. I will not do business with someone that backs out or tries to change the deal after the handshake. I'm sure there's more and I'm sure I paraphrased a lot of his wisdom but I constantly see people and try to do business with people that don't seem to have the basic concepts of horsetrading. Obviously you can play with the numbers some to suit your personality. I hope this helps someone out. Feel Free to add your own stories and interpretations.
I like those rules. My grandfather had a farm machinery dealership so I'm sure he had those skills. It skipped a generation as my dad isn't a wheeler dealer at all. Me on the other hand must have a throwback trait for negotiaitng. I love it. Always have something on KiJiJi. Not happy unless I double my money.
I'm a plumber, so I always get people wanting to trade work for work or work for an item. Alot of times I felt I was doing more work than what the item was worth or what the other guy had to do was not equal to what I had to do. So now i say " I charge x amount of dollars per hour. how much do you want for the item? then any thing over the price of the item is paid in cash. or if it is work for work, he sets his price and we keep a running tally. That keeps anybody from feeling like they are getting screwed.
A six pack is worth about $50 (in either labour or goods) A slab or case of beer is worth approximately $300-$350. I think this rule of thumb works well when you are asking a favour of someone who doesn't actually have to pay for said favour i.e. when you ask a truck driver to drop something off for you and it's not his truck and he is on hourly rate...or you ask the council grader driver to do your driveway while he's doing the roadside outside your house...or the guy that works at the local steel place can get you the steel you need (just drop by on Saturday afternnon after the boss has gone home) Pete
NEVER BURN BRIDGES. It's great to come out well on a trade but don't let them feel victimized. You may have to deal with them or someone that knows of the deal later. A bad deal can turn into a bad reputation in a hurry. Deal so you can deal again.
I agree. Great advice. Don't screw someone over if they're down and out and hurting for money to support their family. I've had many occasion where I've bought tools or parts from a guy who's just lost his job and is really not wanting to sell his stuff but HAS to. I feel bad for my fellow hobbyist and pay a fair price if I need the tools or parts, but never gouge him down because I know he'll probably have to take it. Be a man of your word-don't bullshit people. I've bought parts on a handshake (or an email now a days!!!) and followed through if I say I want the part. Trade parts for parts if you can. It seems that always sits well if the deal can work for both of you. When I had extra parts, I traded extra 34 parts for 34 parts I needed. Both guys walk away happy, and have moved their projects along. Money is cool, but always seems to pay for groceries long before your next needed part becomes available. Pay it forward. When I was young I had several occasions where an older Hot Rodder hooked me up with parts or a parts counter veteran cut me a huge discount on new parts. In turn, I've hooked up some good intentioned young rodders with parts or tech help. What comes around, goes around.
No matter what you want out of a part, it's about half that to a friend. I Never take too much less for something (I KNOW WHAT I GOTTA HAVE OUT OF IT), but i'm not going beat someone else up on the price either. It's not always about the $$$$$$$$$$$. One way or another I figure everyone breaks even in the end.
Oh I've made a few good ones and a few bad ones and I've even managed to turn a bad trade into a good one a time or two. I forgot a few important points.. When selling or trading... BE HONEST about what you have. When asked questions answer truthfully. If the car has bondo in it let them know. At least then they know what to cut out later. Don't ever lie about a car, It'll bite ya in the ass. Also always feel free to offer a trade. you never know what a person might be looking for for their next project or what.
I've seen a lot of friendships end over "buddy deals". If you make one, be sure you're both on the same page about the "ethics" of the deal. Larry T
yeah i know what you mean, i've gave some ''buddies'' a good deal on stuff that i knew was worth more than they got it for, and they turned it for a profit. They know not to call anymore.
And lets not forget about stealing.........if your buddies boss is gone and you get a special deal as in free, that is not a virtue to be a part of or to be proud of let alone joke about, I am not a dogooder, but belive in the old thoughts of if a person can make up reason to steal from thier employer or "friend', then what will keep them at bay in your time of need or struggle? Karma my friends, what comes aroud goes around, all in time......
When doing this, the buyer should ALWAYS give the initial seller the first chance at buying it back at the original price. You should NEVER take advantage of a friend's good nature or misfortune to purchase an item at a lower price only to turn around and sell it for profit. As an example, I purchased a set of corvette aluminum heads awhile back for $100. Got'em for a song off of Craig's List. Buddy of mine wanted'em, and I told him what I paid for them, what I was going to price them at, and offered them to him for $300, which he jumped on. He was happy, I was happy, and still made a profit. Hell, I wound up giving him back his money later on when I bought a car from him anyway!
This is a great thread. Probably will end up being one of the best for this year given the state of the economy. I'm sure this year "Horse trading" will be king!
Buddy deals and karma go hand in hand.... When dealing with a friend, make sure you give them the best deal you can afford. A true friend will return the deal someday when they have something you need. This is all part of that great karma wheel in the sky. I have a great (best) Friend. We have sold each other stuff back and forth a bunch. Each time, we both walk away laughing and shaking hands. One hand washes the other so it just goes back and forth...We once traded a T-5, a turbo 350 trans and multiple tranny accessories back and forth 4 or 5 times....for the same two projects, he has a race car, I have my 46 chevy and we just kept going back and forth over and over...It got to the point of being comical...Before it ever moved under its own power, my 46 had a T-5, turbo 350 short output shaft, turbo 400, long tailshaft turbo 350....All because he needed something I had or I changed my other mind (again)... I have another friend, every time I need something its 500 bucks, a thousand bucks, ...and my personal favorite, let me check ebay and I'll see what they are selling for.....needless to say I don't buy hardly anything from him and don't call him when any of my stuff is for sale... Treat your friends right!!!
thats funny i had the t-350 me and a friend sold back and forth fer 300 bucks a total of 6 times!! I also have the friend that wont give me a break!
My General Rules #1 If someone NEEDS something more than i want it, they get it. #2 Never sell something that one day you will regret (never buy something from someone who is going to regret they sold it) #3 Don't hold anything over someones head due to lack of money. (ie: look at "Bill'' squirm when i mention putting the valve covers he sold me on ebay.They came off his first hotrod, and he sold them in a pinch) #4 When attending a Estate sale keep in mind that the only reason this stuff is being sold is because a loved one died(or they are losing their home due to $ issues). Low balling isn't morally correct in that situation. #5 Ask yourself this: ''what is it worth for me to own" Don't ask them this: ''what do you want for it"
I ttry to live by Never make money from your friends. Ill trade them out of there work for something or when i do something for them. I never take anymoney. We all have special talents to do one thing or another, just help each other out. No hard feelings this way. It works for me. And treat that stranger in a way of how I want to be treated. Sometimes this is hard to do, but hey i might need him for something else. my two cents.
good stuff. great post. it seems many people these days lack the willingness to negotiate. i never used to do it untill recent years and i have to say that most of the time, weather i'm the potential buyer or the potential seller, it is actually quite fun. give you kinda of a little rush. if i'm firm on a price i'm firm on a price and i say so but i typically leave room for negotiation.
Im with you on that, I have only a few true friends, but I would never discuss $$ with them. if they need it , they got it! I know that some day I will be repaid in kind. I luv to give to my mates.
I agree totally, and do this with every transaction. But I also tell them this.........."I have disclosed everything I know about the car, however, after the money changes hands, it is your car. If the engine falls out while backing out of my driveway, it is your engine laying in my drive... not mine."
That is the way it works around here, if I got and you NEED it just take it, we will work somrthing out later. My real good buddies know how to get into the shop and where the tools/parts are. And I know how to get to theirs. I had a buddy who was racing at the nearby track break an exhaust header I was out of state he just went in and welded it up. weeks later I was bitching I could not find a set of valvecover for one of my motors, what do you know I come home from work and a set just like what I wanted was bolted on the motor. I figure by the time we all meet our maker the difference of what we all "owe" each other wont amount to a hill of beans. And a quick way to decide if they are a close friend is when was the last time you shared a mael together? if you cant remember you aint that close. Keith
Loyalty Above All Except Integrity This has served me well. When a friend asks for a favor, I am there. When it comes to my intergrity I draw the line, they know it. I care to much to assit them in matter that could impact their Integrity. It is not easy, and at first here might have been hard feelings, but in every case it obvious it was the right thing to do.
I agree about not lying...but if they don't ask the right questions it's their own fault. As a buyer, we also need to learn to ask specific questions. Sure, we expect our buddies to treat us right, but when it comes to strangers...be prepared. I sold a 69 K10 a while back that had a fresh engine new tires and 1 ton running gear. The running gear was tip top but the body was junk and was priced accordingly. I had a guy call that lived about 3 hours away and asked a few questions about the engine and the axles and things. I answered all his questions honestly. Then he asked about the body... I asked him if he thought I would have it priced so cheap if the body was any good. We had a good laugh, he got my address and came and bought the truck the next day. I don't go looking at cars or parts unless I'm prepared to pay for them and take em home. I wish everyone had that same courtesy. There's to many "Be backs" out there. You know "I'll be back".
All the things said here are great advice. I'd like to also add that you should make sure the price is fair for BOTH parties. When I first started selling my art, I had no sense of self worth. I'd let my stuff go for a song and then wondered why I was busy all the time and still broke. (hell, I'm still in that boat, but I digress). Also remember that you can shear a sheep a hundred times, but you can only skin it once. In business, keep your prices fair and you'll have repeat clients. They may pay what you ask, but if it's too high, they'll never come back and they'll tell all their friends how you ripped them off. (ahem....tattoo artists, are you listening?) It's all about the balance of the deal. If you're happy and the buyer is happy, you'll do business again and again. If you're happy and they're not, you'll lose that customer and all of their friends, as well.
Honesty is the best policy when it comes to cars, and parts. One bad sell, or buy can junk your reputation, no matter how many times you were honest before. With car guys, and gals once a shitbag, always shitbag.
If your saying you know something is wrong but since the buyer didnt ask about it, Its ok not to say anything, Then sorry dude but that is the same thing as lying in my book.
Yep, the only way I can see neglecting to tell about the bad stuff is if you don't mention the good points either. And when I'm looking at a car I ALWAY ask if the seller knows of anything that's wrong with it. Well, I see the bottom of my coffee cup, off to work. Larry T
Honesty and integrity above all else - buying or selling. Your word is all you have - if poeple can not trust you it does not take long for that information to get around. As a seller at a swap meet flea market etc. Do not EVER use the line - "Well I can get that on Ebay"...I am standing here with money in my pocket and you are sitting there waiting for someone to buy your stuff. I do not give a shit what Ebay craziness has planted in your mind...We are both here and you do not pay the 10% to Ebay... you put in all in your front pocket. Not to mention the time you spent taking pics, resizing and listing. Other thing is if you are selling - act like you want to...seems lots of folks any more are there to find their buddies and BS...ignoring potential buyers. If you feel the price is not fair do not pay it. If it is fair then you have nothing to complain about.
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