Craigslist Bargaining 101

I like to think I know how Craigslist works.  I've probably had more than 80 sales in my lifetime; I had more than twenty sales in 2011 and I've already had six sales in 2012.  Hell, I made over $1000 on Craigslist in summer of 2010 selling textbooks I fished out of a dumpster but that's a story for a completely different blog.

In my last post I mentioned that I disagree with the "How to Survive Price Negotations on Craigslist" discussion over at recraigslist.com.  I don't think the author is incorrect; the guy is clearly an expert.  Actually, given his circumstances, I feel he's totally right; selling things on Craigslist is his profession and by lowering his cost he is reducing his income.  However, for those of us who pursue garage saling as a hobby, reselling purchases is just a bonus (icing on the cake, if you will) so his rules don't exactly apply to us.  I will now discuss my preferred method for selling stuff on Craigslist.

For us hobbyists; moving items isn't our primary goal.  We can afford to hold onto purchases for longer because we're not depending on the money to pay the rent.  We can therefore focus on maximizing our returns

When I list an item on Craigslist, the first thing I do is figure out how much money I want to get for it. From here, I set my asking price.  For textbooks it's anywhere from two to two and a half times my minimum; for everything else it's between one and a half and two times my minimum.

High prices serve two purposes.  For one, they scare off lowballers, or at least most of them.  Two, they let me negotiate.  Everyone loves a good deal and people think they're getting a good deal when they can reduce your prices (why do you think some department stores have sales so frequently?).

I inflate my prices to give myself breathing room.  Say, for example, I want $40 minimum for an item.  I will list it at $80 so when someone offers $40 we can settle at $60.  I get more than my minimum and the buyer thinks he or she is getting a bargain.  If no one bites at $80, I can lower my price to $60, someone will offer $40, and we'll settle at $45 or $50.

Ryan, the author at recraigslist, doesn't have this luxury.  Ryan is focused on moving as many items as possible and the only way to have really rapid turnaround on Craigslist is to offer really good deals.  He can't afford to inflate his prices so he can't afford to bargain.

One instance in which you should not bargain is when you have already agreed upon a price with the buyer.  If you reduce your price for the buyer either via phone or email and he or she shows up wanting you to reduce your price further, put your foot down.  If you've already bargained once you should never settle for bargaining twice.