As you dear readers know, this is being written for my grandson. He’s going to be 10 years old in a few months. I think it’s best that at this point he can learn some good skills while still young. As they say, “It’s good to start them young”.
So what are these skills for? For several reasons – so they can survive in emergency situations, or develop their interpersonal relationships, handle their finances better, among other things.
So let’s dive in, one skill at a time.
The ability to negotiate – this is an important skill to develop because it gives you the ability to get the best price or the best condition for your own needs. I’ll give you a tip: When you are negotiating – the first person who gives a price or amount loses usually.
Here’s an example and here’s the scenario: Buyer is in a car dealer to buy a new car. He sits down with the agent and after some pleasantries:
Agent: So do you want to drive this car home today?
Buyer: It depends. If you can give me a good price.
Agent: How much can you afford to pay monthly?
Buyer: Well, what’s your lowest price on the car, before taxes and other fees?
Agent: How much are you willing to pay for it?
Buyer: The lowest price possible, of course. Just give me your bottom number.
Agent: Yeah, but I’m giving you the best model with several good options. I’m thinking I could give you a good price. How much do you want to pay?
Buyer: Like I said, I like the car but I would be willing to look around for the same model somewhere else if you can’t give me a good price.
Agent: So what’s a good price, you think? Let me know so I can ask my manager (this is an age-old delaying tactic) if we can afford to let it go at this price.
Buyer: If you can give it to me at a real good price below invoice, I would be willing to commit to you. (Note: Invoice is the official “cost” of the vehicle to the dealership. It doesn’t include any incentives from the manufacturer to the dealer).
Agent: How much below invoice?
Buyer: Give me your price and I’ll let you know if it’s within my budget.
Agent: OK how about $500 below invoice?
Buyer: (Flashback two days ago: Buyer checked out several websites including edmunds.com to find out how much buyers are paying for it). Well, I’m thinking I can get it from another dealer for $900 below invoice.
Agent: OK, let me talk to my manager.
Agent comes back about 10 minutes later, and said “congratulations, the manager agreed to give it to you, but at $700 below invoice”.
At this point – Buyer will have to decide if he’s willing to accept it, or he can do further research by calling other dealers within 100 miles.
Did you notice what happened? Both avoided to commit to a certain amount. After so much going back and forth, the agent finally relented, and Buyer get himself a deal.
You can do the same thing when buying appliances, jewelries, expensive equipment, etc.. Someone wrote before that any item over $3,000 can be negotiated. I personally lowered it to 2,000. And yes, ask for any discount they offer such as student, military, senior citizen, state resident, etc.
You know what? I will expand this post about skills. This will turn into a series. We’ll name it “Nice Skills” series.