I've decided to start limiting my posts to twice per week. As of now I do not have plans to post on particular days but that may change as I get into a routine. I will continue to post purchase summaries on those weekends in which I go saling but the summaries will not be counted towards my twice weekly postings. Unless I get lazy. I may post more frequently than twice per week if I have a sudden pressing point or I get overzealous.
This post doesn't count either.
Monday, January 30, 2012
Saturday, January 28, 2012
1/28/12 Purchase Summary
I would say today we saw more sales than any day in 2011. This may be an incorrect assertion since I can't remember every garage saling trip from 2011.
While there were a lot of sales, there weren't that many that were exciting. I spent $2; no one had any amazing deals.
For my $2 I received four item: two books (1776 David McCullough and The Road by Cormac McCarthy) for $0.25 each, $0.25 for a small LED lamp, and $1.25 for two more Laser Challenge laser guns and vests. The books are nothing special; I was rather happy with these though because I had been intending to read them and while I have both on my Kindle, I prefer to read books in book form. I bought the lamp because I've been looking for a small lamp I can use to read at night without having to get up to turn off. As an added bonus, it uses LED's so it's energy efficient and won't give off noticeable heat. I bought the laser guns to play with in the short run and sell in the long run. I am unsure if I will bundle them with the other guns I have or attempt to sell them as a set of two. I guess I should look into selling small sets of them on eBay or Craigslist.
Tuesday, January 24, 2012
Trekking Poles, Calculators, and other Miscellanea
I resold the trekking poles I purchased for $1 on the 14th for $35 on the 17th. A three-day turnaround on Craiglist is pretty much unheard of so I was pretty happy. To be honest, I probably could have gotten $10-$15 more for the set; the buyer told me trekking poles are very uncommon on Craigslist. However, the poles were in pretty bad shape (the snow baskets were broken off and the poles were covered in scratches) compared to the few other poles on Craigslist and they were all priced between $30 and $45 so $35 was definitely fair. I know I've said to never base your prices on Craigslist's prices but this was one instance in which I really didn't have a choice.
I resold the Nerf guns ten minutes ago for $65; not bad for a $2 investment. In this instance I actually beat my projected resale value because one of the guns -- the Longshot -- is worth a fair amount among Nerf enthusiasts. It frequently sells for $40+ on eBay. I didn't realize this until I was browsing the Nerf wiki to determine what types of darts the it requires. I guess this is an example of why you should always know your product. Do your research before you list an item; make sure it isn't more valuable than you expect.
The poles and the Nerf guns remain the only purchases from the 14th that I have managed to resell. The silver has proven to be a poor investment. Right now I am investigating selling it to Replacements, Ltd. or a similar site but identifying the patterns is hard. I have it listed on Craigslist for an absurdly high price in the hopes that someone makes me an offer. At this point I'll pretty much accept anything.
I had my first Amazon return request last week. The bad thing about selling on Amazon is that the Terms of Service require you to accept returns for a minimum period. Unfortunately it was for the TI-92 graphing calculator and not one of the $5 books I've been selling. Had it been for a book I would have told him to keep it and just taken it as a loss. The calculator is too valuable to write off as a loss so I have to deal with the buyer shipping it back to me and all of that stuff. It's frustrating because the calculator was relatively expensive to ship. I will be able to resell it -- and the current Amazon prices suggest I will manage to get $3, $6, or even $9 more than I first sold it for, depending at which price I insert it and if another seller tries to undercut me -- but that money I spent shipping it in the first place is gone.
The buyer's excuse for returning it was that it was an "Accidental Order." This return category is bullshit. You cannot accidentally order an item on Amazon; there are just too many clicks required to make any order an accident. I assume he ordered it assuming it was the TI-92 Plus and not the TI-92 despite the description clearly stating it's "NOT THE TI-92 PLUS." And yes, it was in caps. I definitely will not be reimbursing him for his return shipping.
I resold the Nerf guns ten minutes ago for $65; not bad for a $2 investment. In this instance I actually beat my projected resale value because one of the guns -- the Longshot -- is worth a fair amount among Nerf enthusiasts. It frequently sells for $40+ on eBay. I didn't realize this until I was browsing the Nerf wiki to determine what types of darts the it requires. I guess this is an example of why you should always know your product. Do your research before you list an item; make sure it isn't more valuable than you expect.
The poles and the Nerf guns remain the only purchases from the 14th that I have managed to resell. The silver has proven to be a poor investment. Right now I am investigating selling it to Replacements, Ltd. or a similar site but identifying the patterns is hard. I have it listed on Craigslist for an absurdly high price in the hopes that someone makes me an offer. At this point I'll pretty much accept anything.
I had my first Amazon return request last week. The bad thing about selling on Amazon is that the Terms of Service require you to accept returns for a minimum period. Unfortunately it was for the TI-92 graphing calculator and not one of the $5 books I've been selling. Had it been for a book I would have told him to keep it and just taken it as a loss. The calculator is too valuable to write off as a loss so I have to deal with the buyer shipping it back to me and all of that stuff. It's frustrating because the calculator was relatively expensive to ship. I will be able to resell it -- and the current Amazon prices suggest I will manage to get $3, $6, or even $9 more than I first sold it for, depending at which price I insert it and if another seller tries to undercut me -- but that money I spent shipping it in the first place is gone.
The buyer's excuse for returning it was that it was an "Accidental Order." This return category is bullshit. You cannot accidentally order an item on Amazon; there are just too many clicks required to make any order an accident. I assume he ordered it assuming it was the TI-92 Plus and not the TI-92 despite the description clearly stating it's "NOT THE TI-92 PLUS." And yes, it was in caps. I definitely will not be reimbursing him for his return shipping.
Monday, January 23, 2012
A Note on Craigslist
In the last few posts I have discussed using Craigslist and in the future, as I discuss reselling more frequently, I will mention more of my own Craigslist experiences.
Please, please do not use Craigslist. It is a scary place with weird people. I personally had A Very Bad Experience (caps intentional) with a buyer March of last year that made me very glad I met the guy in a heavily-populated, well-lit location with a friend. I was still afraid of being arrested and/or shanked. People get murdered at Craigslist deals. And scammed. Seriously, it's not worth it. Use eBay or Amazon.
I am using my Craigslist anecdotes only as demonstrations of bargaining and reselling techniques. I do not condone your use of Craigslist. In fact, I disapprove. I take no responsibility should you use Craigslist and be hurt, scammed, murdered, etc. Seriously, don't do it.
Please, please do not use Craigslist. It is a scary place with weird people. I personally had A Very Bad Experience (caps intentional) with a buyer March of last year that made me very glad I met the guy in a heavily-populated, well-lit location with a friend. I was still afraid of being arrested and/or shanked. People get murdered at Craigslist deals. And scammed. Seriously, it's not worth it. Use eBay or Amazon.
I am using my Craigslist anecdotes only as demonstrations of bargaining and reselling techniques. I do not condone your use of Craigslist. In fact, I disapprove. I take no responsibility should you use Craigslist and be hurt, scammed, murdered, etc. Seriously, don't do it.
Thursday, January 19, 2012
Reselling: The Big Trade-Off
When reselling an item, you have to choose between getting your money immediately and waiting for a larger sum. The rules I will discuss in the following paragraphs hold true for both Craigslist and Amazon, the two websites with which I resell most of my investments.
When I purchase an item with the intention of reselling it; the first thing I do when I get home is determine my anticipated profits. I will discuss this process in the future, but a shortcut for when I'm feeling lazy is to simply find Amazon's used low price for the item, double that, and list it on Craigslist for the double price. If I'm listing it on Amazon, I will take into account the price distributions as well. Today, I only need discuss Craigslist to demonstrate the trade-off.
Take, for example, my TI-84 graphing calculator. I bought it on the 30th of July and resold it the 7th of October. Why did it take over two months to sell it? Two months is a rather long turnaround. I was holding out for the best price.
When I bought the calculator that day, the low price on Amazon was $50. This was less than I hoped to make: I wanted a $70 profit minimum. Seeing how how there were at least twenty calculators price between $50 and $60, I knew it would take forever to sell it at the $85 needed to make a $70 profit after shipping and Amazon's fees so I listed it on Craigslist.
I initially listed it $100, expecting people to offer $60 from which I would settle at $75. No one was interested at $100 so I reduced the price to $90. At $90 people were emailing me with offers. The typical offer was $60 but I had some as low as $45.
I knew that if I waited I would find someone willing to pay $75 for the calculator. This is the trade-off of my title: you either sell it quickly for a lesser sum or you wait for a better offer.
I did end up selling the calculator for $75, earning more than my goal of a $70 profit although I did have to wait two months. I probably could have sold within two weeks of purchasing it for $60, so by waiting I earned an additional twenty-five percent.
When I purchase an item with the intention of reselling it; the first thing I do when I get home is determine my anticipated profits. I will discuss this process in the future, but a shortcut for when I'm feeling lazy is to simply find Amazon's used low price for the item, double that, and list it on Craigslist for the double price. If I'm listing it on Amazon, I will take into account the price distributions as well. Today, I only need discuss Craigslist to demonstrate the trade-off.
Take, for example, my TI-84 graphing calculator. I bought it on the 30th of July and resold it the 7th of October. Why did it take over two months to sell it? Two months is a rather long turnaround. I was holding out for the best price.
When I bought the calculator that day, the low price on Amazon was $50. This was less than I hoped to make: I wanted a $70 profit minimum. Seeing how how there were at least twenty calculators price between $50 and $60, I knew it would take forever to sell it at the $85 needed to make a $70 profit after shipping and Amazon's fees so I listed it on Craigslist.
I initially listed it $100, expecting people to offer $60 from which I would settle at $75. No one was interested at $100 so I reduced the price to $90. At $90 people were emailing me with offers. The typical offer was $60 but I had some as low as $45.
I knew that if I waited I would find someone willing to pay $75 for the calculator. This is the trade-off of my title: you either sell it quickly for a lesser sum or you wait for a better offer.
I did end up selling the calculator for $75, earning more than my goal of a $70 profit although I did have to wait two months. I probably could have sold within two weeks of purchasing it for $60, so by waiting I earned an additional twenty-five percent.
Sunday, January 15, 2012
The Food Processor Mistake
Of the few people to whom I have attempted to introduce garage saling but been declined, most of them told me they were not looking to purchase anything at the time. This is a common misconception -- and mistake -- regarding garage saling which I will discuss below.
As you have probably gathered by now, garage saling is not like regular shopping. Take, for example, regular shopping. If you need eggs, you go to the store, get them, pay, go home. It's easy and predictable. In contrast, take garage saling. If you need say, a lamp, you get in your car, drive around, find a lamp, decide it's too ugly, drive around, find a lamp, decide it's too expensive given its condition, drive around, and, if you're lucky, by the end of the day you will have a decent, cheap lamp.
Garage saling for a single item is extremely frustrating. You may not find the item this week or next week or even for a few months. You may find an item that is broken or has already been sold or is too expensive (be sure to avoid this second kind of desperation purchase in which you are tempted to buy an item that is too expensive just because you have been searching so long). Eventually, after not finding the item for a period, you get a sort of tunnel vision; the item becomes an obsession.
How do I avoid this frustration? I keep a list of items I hope to find. It's not a physical list written out someplace; it's just a bunch of items that I know have a decent resale value, my family or friends are looking for, or I know will make good gifts. If I find an item from that list, great. If not, oh well. The most important thing to keep in mind is that the majority of garage sale purchases are not items for which one has been looking; they're simply things that strike one's interest or one feels will sell well or make good gifts.
I have seen all of the items on my list at least once. Many of the items proved too expensive or I saw them before I realized I needed or wanted them. The point is, if you look hard enough, you will find what you are looking for.
I call this single-minded searching the Food Processor Mistake after my good friend from high school and chief garage saling partner. He came back from studying abroad in December 2010 thinking he wanted a food processor. We went garage saling in December and January and he never found one. After school was done in June, we started garage saling again. June passed with absolutely no food processors at any garage sales. July passed the same way. He started exploring alternative purchasing methods but finds them beyond his budget. Finally, after much despair -- he had almost given up on garage saling for a while because he was so frustrated -- in August or September he finally finds one for $3 and immediately purchases it. Oddly, literally the next sale we went to had one for sale as well. And the next sale as well. The following weekend we counted eight more. The following weekend we counted another eight.
As you have probably gathered by now, garage saling is not like regular shopping. Take, for example, regular shopping. If you need eggs, you go to the store, get them, pay, go home. It's easy and predictable. In contrast, take garage saling. If you need say, a lamp, you get in your car, drive around, find a lamp, decide it's too ugly, drive around, find a lamp, decide it's too expensive given its condition, drive around, and, if you're lucky, by the end of the day you will have a decent, cheap lamp.
Garage saling for a single item is extremely frustrating. You may not find the item this week or next week or even for a few months. You may find an item that is broken or has already been sold or is too expensive (be sure to avoid this second kind of desperation purchase in which you are tempted to buy an item that is too expensive just because you have been searching so long). Eventually, after not finding the item for a period, you get a sort of tunnel vision; the item becomes an obsession.
How do I avoid this frustration? I keep a list of items I hope to find. It's not a physical list written out someplace; it's just a bunch of items that I know have a decent resale value, my family or friends are looking for, or I know will make good gifts. If I find an item from that list, great. If not, oh well. The most important thing to keep in mind is that the majority of garage sale purchases are not items for which one has been looking; they're simply things that strike one's interest or one feels will sell well or make good gifts.
I have seen all of the items on my list at least once. Many of the items proved too expensive or I saw them before I realized I needed or wanted them. The point is, if you look hard enough, you will find what you are looking for.
I call this single-minded searching the Food Processor Mistake after my good friend from high school and chief garage saling partner. He came back from studying abroad in December 2010 thinking he wanted a food processor. We went garage saling in December and January and he never found one. After school was done in June, we started garage saling again. June passed with absolutely no food processors at any garage sales. July passed the same way. He started exploring alternative purchasing methods but finds them beyond his budget. Finally, after much despair -- he had almost given up on garage saling for a while because he was so frustrated -- in August or September he finally finds one for $3 and immediately purchases it. Oddly, literally the next sale we went to had one for sale as well. And the next sale as well. The following weekend we counted eight more. The following weekend we counted another eight.
Saturday, January 14, 2012
1/14/12 Purchase Summary
Today was the first garage saling day of 2012 and I would say it was better than any day we had in 2011 and maybe even 2010. Sales were consistently excellent. Before I mention my purchases I want to highlight a few of my friends' finds: a Breathalyzer for $0.25, a French press for $0.50, and a Droid Eris (complete with accessories) for $20. The Breathalyzer was so cheap because the people who sold it thought it was broken; my friend took it home and got it working within a few minutes without having to spend the $70 $30 to get it calibrated.
I'm not going to discuss my bargaining today (I didn't really do anything exceptional today) but I have provided a short album of my purchases.
I bought the AlphaSmart for $1 as an investment; I think I can get $20-$40 for it. (For those of you who don't know what an AlphaSmart is, Wikipedia can explain it better than I. I bought the silverware for $5 knowing it's real silver. Unfortunately, I think it's silver plating so it's basically worthless. I'll be sure to provide and update in the future regarding however that turns out. The Nerf guns cost me $2 total; I think I can resell them for $40-$60 if I include the Nerf target board I bought in December. The keyboard is mechanical, which, for those of you who don't know, is something of a collector's item right now. Unfortunately, it's a knockoff so I won't get much for it; I'll probably make around $20 on it. The hiking poles cost me $1. I have them listed on Craigslist for $45 but if they don't sell that's fine; I'll just use them as backups. The Perot sign is from his 1996 election bid; I think I'll use it as a decoration -- I like tacky things. Finally, not shown in the album is a puzzle I got for my sister's birthday ($0.25 new) and a stack of maps I got for $3. The stack of maps contains mostly National Geographic inserts from the 1960's and 1970's but it also has some star maps, a map of the moon, and a map of Mars. They're all pretty large; I think the smallest is something around 2'x2.5'.
For those of you who cannot add, this totals $13.40. Even if I sell just the Nerf guns I'll be making a pretty good profit. I hope today was indicative of the rest of 2012.
I'm not going to discuss my bargaining today (I didn't really do anything exceptional today) but I have provided a short album of my purchases.
I bought the AlphaSmart for $1 as an investment; I think I can get $20-$40 for it. (For those of you who don't know what an AlphaSmart is, Wikipedia can explain it better than I. I bought the silverware for $5 knowing it's real silver. Unfortunately, I think it's silver plating so it's basically worthless. I'll be sure to provide and update in the future regarding however that turns out. The Nerf guns cost me $2 total; I think I can resell them for $40-$60 if I include the Nerf target board I bought in December. The keyboard is mechanical, which, for those of you who don't know, is something of a collector's item right now. Unfortunately, it's a knockoff so I won't get much for it; I'll probably make around $20 on it. The hiking poles cost me $1. I have them listed on Craigslist for $45 but if they don't sell that's fine; I'll just use them as backups. The Perot sign is from his 1996 election bid; I think I'll use it as a decoration -- I like tacky things. Finally, not shown in the album is a puzzle I got for my sister's birthday ($0.25 new) and a stack of maps I got for $3. The stack of maps contains mostly National Geographic inserts from the 1960's and 1970's but it also has some star maps, a map of the moon, and a map of Mars. They're all pretty large; I think the smallest is something around 2'x2.5'.
For those of you who cannot add, this totals $13.40. Even if I sell just the Nerf guns I'll be making a pretty good profit. I hope today was indicative of the rest of 2012.
Friday, January 13, 2012
A Major Bargaining Blunder to Avoid
Several times while hosting my own garage sales (a topic I will discuss in the future) I have noticed buyers making a serious tactical mistake while attempting to bargain: offering a range of values rather than a single sum.
For example, I was selling a welding mask I had recently purchased at another sale. I wasn't really interested in selling it; I was more interested in seeing how much other people would be willing to spend on it. It was an experiment of sorts. One buyer asked me how much it was so I told him to make me an offer. He responded with "Five or ten dollars?"
Such an offer is a serious mistake. I immediately latched onto the ten dollar value; no seller is ever going to accept the low end of the range. Sellers are trying to make money so they're going to draw from the high end.
I'm guessing people make this mistake because they are unfamiliar with bargaining and are unsure how to start. I'm hoping after reading this blog you know at least a little bit about the strategies of bargaining. Remember, when in doubt, make a lowball offer.
For example, I was selling a welding mask I had recently purchased at another sale. I wasn't really interested in selling it; I was more interested in seeing how much other people would be willing to spend on it. It was an experiment of sorts. One buyer asked me how much it was so I told him to make me an offer. He responded with "Five or ten dollars?"
Such an offer is a serious mistake. I immediately latched onto the ten dollar value; no seller is ever going to accept the low end of the range. Sellers are trying to make money so they're going to draw from the high end.
I'm guessing people make this mistake because they are unfamiliar with bargaining and are unsure how to start. I'm hoping after reading this blog you know at least a little bit about the strategies of bargaining. Remember, when in doubt, make a lowball offer.
Thursday, January 12, 2012
Avoid the Desperation Purchase
One trap into which buyers are frequently tempted to fall is the desperation purchase. One is tempted to make a desperation purchase late in the day when one has not yet purchased an item. Sale conditions do not effect the draws of the desperation purchase; I have seen people make desperation purchases on days with poor sales and days with exceptionally good sales that lacked items of interest
Desperation purchases are easy to avoid if you know to look for the trap; you simply need to ask yourself if the purchase really is a good deal and if you really need the item. If the answers to both questions are yes, then you should go ahead and make the purchase. If the answer to one or both questions is no, then you may be making a purchase which you will regret later.
I always avoid desperation purchases; why spend money on an item I'll regret in the future? In my five years of garage saling, I have only had three days in which I bought nothing. Many of the best deals are found at the end of the day so don't feel anxious if you have yet to buy anything. Chances are you will find something before the day is over.
Desperation purchases are easy to avoid if you know to look for the trap; you simply need to ask yourself if the purchase really is a good deal and if you really need the item. If the answers to both questions are yes, then you should go ahead and make the purchase. If the answer to one or both questions is no, then you may be making a purchase which you will regret later.
I always avoid desperation purchases; why spend money on an item I'll regret in the future? In my five years of garage saling, I have only had three days in which I bought nothing. Many of the best deals are found at the end of the day so don't feel anxious if you have yet to buy anything. Chances are you will find something before the day is over.
Wednesday, January 11, 2012
Stopping to "Think"
This technique is so simple I didn't even bother to file it under Advanced Bargaining. I use it when traditional bargaining has failed to bring the price as low as I wished but I sense the seller might go lower.
This technique is a calculated attempt to make the seller think you are wavering on a purchase. As I said above, it's surprisingly simple. When a seller won't go lower, I stop negotiating and pretend to think. Usually I look off into the distance and make an audible thinking noise ("ummmm"), pretending to be performing some sort of calculation.
Such a performance does two things. One, it hopefully convinces the seller you truly want the item. Two, it hopefully convinces the seller that his or her price is too high. These two effects hopefully combine to influence the seller to offer you a lower price. From there, you can either accept or, if it's still too high, you can try to ask for an even lower price. It's up to you.
If this technique fails to convince the seller to make a lower offer, it may make them receptive to a lower offer from you. If he or she doesn't make a lower offer while you're doing your math, simply say that their price is out of your price range and ask if they would take a slightly lower sum
This technique, like the last one I introduced, is just another way to try to get the seller to make an offer twice in a row. This, of course, violates the first rules of bargaining which is bad for the seller but good for you.
There are many variations on this theme. Try experimenting on your own to exploit common bargaining mistakes; you will find it's very profitable.
This technique is a calculated attempt to make the seller think you are wavering on a purchase. As I said above, it's surprisingly simple. When a seller won't go lower, I stop negotiating and pretend to think. Usually I look off into the distance and make an audible thinking noise ("ummmm"), pretending to be performing some sort of calculation.
Such a performance does two things. One, it hopefully convinces the seller you truly want the item. Two, it hopefully convinces the seller that his or her price is too high. These two effects hopefully combine to influence the seller to offer you a lower price. From there, you can either accept or, if it's still too high, you can try to ask for an even lower price. It's up to you.
If this technique fails to convince the seller to make a lower offer, it may make them receptive to a lower offer from you. If he or she doesn't make a lower offer while you're doing your math, simply say that their price is out of your price range and ask if they would take a slightly lower sum
This technique, like the last one I introduced, is just another way to try to get the seller to make an offer twice in a row. This, of course, violates the first rules of bargaining which is bad for the seller but good for you.
There are many variations on this theme. Try experimenting on your own to exploit common bargaining mistakes; you will find it's very profitable.
Tuesday, January 10, 2012
TI-92 Update
Today I sold the TI-92 graphing calculator I bought back in November for a total profit of $30.40 on Amazon.
When I bought the calculator in November, I did not intend to sell it on Amazon because the market price was then around $22, which would have made my profit around $16 which isn't really worth my time. I listed it on Craigslist for $45 with no success and periodically checked the Amazon price. When I checked the price again in December, I found the prices had "split," meaning that there were, strangely, two price floors: one at $25 and one at $36. I am currently doing some experiments with other items I have listed that will prove very interesting if my hypotheses regarding these double-floor situations are correct, so maybe this time in March I can offer some more insight into the nature of these splits.
I ended up listing the calculator at $44, deciding to wait for the entire bottom floor to sell out and for the upper floor to rise. However, many sellers started listing their calculators between $39 and $44, so I dropped mine to $38 (which by then was the higher floor) for the quick sale; all I had to do was wait for the last two or three items at the lower floor to sell so my calculator was then the lowest-priced.
You may have noticed that $30 is slightly less than the estimated resale value I have listed in my "Most Recent Deals" sidebar. I definitely could have made more had I waited, but I have noticed that waiting too long on Amazon can sometimes cause prices to drop because new sellers flood the market with their items. I decided to go for slightly less money now rather than to risk having to wait for prices to rise again after new sellers entered the market.
I'm pretty happy with this sale. I made a $30 profit off of a $1 investment and I got a free game out of the deal, a game that would have cost me about $14 on Amazon. Those are pretty good returns. Add $30.40 to last year's profits.
When I bought the calculator in November, I did not intend to sell it on Amazon because the market price was then around $22, which would have made my profit around $16 which isn't really worth my time. I listed it on Craigslist for $45 with no success and periodically checked the Amazon price. When I checked the price again in December, I found the prices had "split," meaning that there were, strangely, two price floors: one at $25 and one at $36. I am currently doing some experiments with other items I have listed that will prove very interesting if my hypotheses regarding these double-floor situations are correct, so maybe this time in March I can offer some more insight into the nature of these splits.
I ended up listing the calculator at $44, deciding to wait for the entire bottom floor to sell out and for the upper floor to rise. However, many sellers started listing their calculators between $39 and $44, so I dropped mine to $38 (which by then was the higher floor) for the quick sale; all I had to do was wait for the last two or three items at the lower floor to sell so my calculator was then the lowest-priced.
You may have noticed that $30 is slightly less than the estimated resale value I have listed in my "Most Recent Deals" sidebar. I definitely could have made more had I waited, but I have noticed that waiting too long on Amazon can sometimes cause prices to drop because new sellers flood the market with their items. I decided to go for slightly less money now rather than to risk having to wait for prices to rise again after new sellers entered the market.
I'm pretty happy with this sale. I made a $30 profit off of a $1 investment and I got a free game out of the deal, a game that would have cost me about $14 on Amazon. Those are pretty good returns. Add $30.40 to last year's profits.
Monday, January 9, 2012
The Put Down/Walk Away
The Put Down/Walk Away, for lack of better name, is a technique I use when I assume a seller's initial price is too high. After garage saling for a while, you will get a feel of when an item's price will be too high. Easy ways to tell are to simply listen for when others ask the seller how much the item costs or to look at other, marked prices.
This technique can be risky in that you allow other buyers the potential to take the item you intend to buy. I suggest you try this technique only when there are no people nearby who you don't know. I also suggest telling your partner(s) what you are doing before you do it.
This technique is intended to make the seller believe his or her price is absurdly high, whether it is or not. All you have to do is ask the seller the item's price; when he or she does so look at him or her and quickly put the item down and walk away. If the seller wants to get rid of the item more than he or she wants to get money for the item, he or she will then make you a better offer. All you are doing is trying to force the seller to name a price twice in a row.
I have found this technique works maybe fifty percent of the time. When it does work I would say it takes fifty percent off the seller's price.
The good thing about this technique is that you do not hurt negotiations as long as no one else grabs the item when you walk away. If you still want the item after the seller hasn't fallen for the trick, simply walk over, grab it, and begin bargaining as usual.
This technique can be risky in that you allow other buyers the potential to take the item you intend to buy. I suggest you try this technique only when there are no people nearby who you don't know. I also suggest telling your partner(s) what you are doing before you do it.
This technique is intended to make the seller believe his or her price is absurdly high, whether it is or not. All you have to do is ask the seller the item's price; when he or she does so look at him or her and quickly put the item down and walk away. If the seller wants to get rid of the item more than he or she wants to get money for the item, he or she will then make you a better offer. All you are doing is trying to force the seller to name a price twice in a row.
I have found this technique works maybe fifty percent of the time. When it does work I would say it takes fifty percent off the seller's price.
The good thing about this technique is that you do not hurt negotiations as long as no one else grabs the item when you walk away. If you still want the item after the seller hasn't fallen for the trick, simply walk over, grab it, and begin bargaining as usual.
Friday, January 6, 2012
A Few More Notes Regarding Bargaining
I have a few random points about bargaining to go over today, more random tips than anything.
First, and most important, is to always be polite. People hate thinking nice people dislike them, so if you are polite to sellers, they are far more likely to give you a bargain just so they think you like them. Yes, there are a few exceptions to this rule, such as paying in change, but you should always start negotiations by being friendly.
Never try to go for pity points. When I've had sales, I've had people try to reduce my price by telling me they need to save money because of various hardships they're going through. Great, I would tell them, and I have to pay off my student loans. My point is that you know nothing of the seller's situation. Maybe his wife has cancer. Maybe her car just got totaled. You end up sounding incredibly self-centered when you try to use pity as a bargaining technique.
I have found one exception to this rule solely by accident. If you're a college student, you can try wearing a shirt or jacket with your university's emblem. I've found that when I wear it, people frequently notice it when I'm bargaining. They'll ask me about it and offer me a lower price upon me telling them I am a student at that university without me asking. This is very much a matter of luck, though.
Finally, and most importantly, there are no set rules. Try experimenting with different strategies; maybe you will find something I have never considered. I am always trying new techniques; I just discuss the ones that prove most successful.
First, and most important, is to always be polite. People hate thinking nice people dislike them, so if you are polite to sellers, they are far more likely to give you a bargain just so they think you like them. Yes, there are a few exceptions to this rule, such as paying in change, but you should always start negotiations by being friendly.
Never try to go for pity points. When I've had sales, I've had people try to reduce my price by telling me they need to save money because of various hardships they're going through. Great, I would tell them, and I have to pay off my student loans. My point is that you know nothing of the seller's situation. Maybe his wife has cancer. Maybe her car just got totaled. You end up sounding incredibly self-centered when you try to use pity as a bargaining technique.
I have found one exception to this rule solely by accident. If you're a college student, you can try wearing a shirt or jacket with your university's emblem. I've found that when I wear it, people frequently notice it when I'm bargaining. They'll ask me about it and offer me a lower price upon me telling them I am a student at that university without me asking. This is very much a matter of luck, though.
Finally, and most importantly, there are no set rules. Try experimenting with different strategies; maybe you will find something I have never considered. I am always trying new techniques; I just discuss the ones that prove most successful.
Monday, January 2, 2012
Aggressive Bargaining Part 2, Continued
I'm finishing up my discussion from last time with one special instance that can be rather tricky to navigate
Let's say, based on what I discussed in my last post, that you decide to ask the seller for his or her price. He or she then tells you to name your price. What do you do?
There are two ways to negotiate this situation. The first option is to just offer an extreme lowball but you run the risk of offending your seller. If I'm afraid of offending the seller, I typically try the other option: an escape statement such as "Oh, I really have no idea how much this is worth; how much were you hoping for?" From the price the seller names I will then begin bargaining
In a situation in which I am forced to make an offer against my will I almost always make an extreme lowball -- usually twenty-five cents or less. If I do offend the seller, I just point out that they told me to name my price and hopefully bargaining will continue from there. The only time I try the escape option is when I am interested in a fairly valuable item that I suspect the seller knows is valuable as well.
Let's say, based on what I discussed in my last post, that you decide to ask the seller for his or her price. He or she then tells you to name your price. What do you do?
There are two ways to negotiate this situation. The first option is to just offer an extreme lowball but you run the risk of offending your seller. If I'm afraid of offending the seller, I typically try the other option: an escape statement such as "Oh, I really have no idea how much this is worth; how much were you hoping for?" From the price the seller names I will then begin bargaining
In a situation in which I am forced to make an offer against my will I almost always make an extreme lowball -- usually twenty-five cents or less. If I do offend the seller, I just point out that they told me to name my price and hopefully bargaining will continue from there. The only time I try the escape option is when I am interested in a fairly valuable item that I suspect the seller knows is valuable as well.
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