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Tactic #72 - Low- or Highballing
Summary: Making a ridiculously low or high
offer.
In Low- or Highballing, someone makes a
ridiculously low or high offer.
Example
You are trying to sell your house for $189,000.
Your agent brings you an offer of $160,000 from a couple who saw the
house over the weekend. If your house is competitively priced, this
would be considered a lowball offer.
Lowballing is effective because it tends to lower a counterpart’s
aspirations. If you counter the couple’s offer with $180,000, their next
offer of $175,000 will not seem so bad. If they had originally offered
you $175,000, you would probably have countered higher than $180,000.
Counter
If someone lowballs you, you have three options:
(1) Do not counter! Utilize These Boots Are Made for Walking and
move on. (2) Counter by repeating your asking price. (3) Using the
tactic of the Withdrawn Offer, counter with a figure higher than
your asking price. Explain that the couple must have misunderstood the
actual price, and then counter their ridiculous offer with an even more
ridiculous price.
If someone highballs you, you also have three options: (1) Do your
homework to find out whether the price is competitive. (2) Use the
Power of Competition. Demonstrate with a competitive analysis that
the price is unreasonably high. (3) Ask for a price breakdown.
This tactic is one of 101 strategies and tactics
featured in The Only Negotiating Guide You'll Ever Need, by Peter
Stark and Jane Flaherty.
To view this month's issue of The Master
Negotiator, the premiere on-line newsletter for negotiators,
follow this link:
The Master Negotiator, Volume 2, Number
4 Questioning Skills, Part II
To view previous Negotiating Tactics of the Week,
follow this link:
Negotiating Tactics of the Week
To forward this tactic to a friend or colleague
please click on the forward link below
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