As the seller, my goal was to get as much money for my used car as possible. I
met with the buyer and was immediately surprised that they quickly got down to the
business of acquiring my used car. My goal was to try and strike up a rapport with the
buyer and get to know them a little better given the time we had. I asked if the buyer had
a family and if economy as well as safety was something they were interested in when it
comes to transportation. It was important to me that I get the buyer to relax a bit and
become comfortable speaking with me about things tangential to the car. This strategy I
felt would help me learn exactly what their goals were so that I could use that information
in my presentation of this used vehicle. It took a little more time than I thought, however
the buyer started to open up and pause before responding—giving me a chance to
reaffirm their goals and assess where I could go ultimately with my negotiations.
The Competitive Phase
I started out my negotiation to the buyer with an objective argument that the
vehicle I was selling was very reliable. I offered to provide the service tickets showing
that routine maintenance had been performed on schedule with the intent of strengthening
the resale value of the vehicle. I also went on to say that I had two other offers that I was
considering, but there was still time for the buyer to tender their offer for consideration.
My thought of the implied threat of having other offers on the table was very effective
because as soon as I said that—the buyer turned and offered more for the vehicle.
I certainly asked more for the vehicle than I thought possible because I thought
the b...
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...the buyer that I would assure to have the tank full of gas and the vehicle washed
upon delivery. We did end our negotiation on a positive vibe.
Summary
I felt I was successful in this exercise, but admittedly I should have let the buyer
speak first from simply a strategic standpoint. By speaking first, this gave the buyer
more time to analyze my position and thus come up with a more saleable argument with
their offer. I feel that my success came with having substantial positive counter offers
once I spoke to the more positive aspects of this vehicle. I would have liked to try the
Boulwareism “take it or leave it” proposal just to see what response I would have
received. Of course, knowing that I needed the cash today is what kept me from
attempting that one because the buyer could have said, “Well, I’ll just leave it.”
When doing an evaluation of any case, you should always look at all the relevant facts and issues involved before jumping to conclusions. As for this case, Mike Thurmond, the operator of Top Quality Auto Sales, a used car dealership, has financed his dealerships inventory of vehicles by creating a financing arrangement with Indianapolis Car Exchange (ICE). ICE then filed a financing statement that listed Top Quality’s inventory as collateral for the financing. After this, Top Quality sold a Ford truck to Bonnie Chrisman, who was also a used car dealer. Chrisman paid Top Quality for the truck and then proceeded to sell it Randall and Christina Alderson, who paid Chrisman for the vehicle. In
materials.) A vendor is not an owner if it did not own the property at the time
The Attorney General and the Department of Motor Vehicles of several States are now putting auto dealers on notice. In the states of New York and Nevada they are warning them: “Your advertisements had better be accurate” (Knapp, Eyewitness News, 2004). Studies from the Attorney General of New York Eliot Spitzer, gives many consumer tips to finding misleading advertisements. “Push, Pull, and Drag it in, Guaranteed Trade-in $3,000!” This is a ploy slogan that really confuses consumers, especially college students. In reality, the dealers cannot pay money for a trade in no matter how much it is actually worth. The dealers can only put that hypothetical “trade-in money” toward the purchase of another car. “Dealers often raise the prices of the cars on their lots prior to this sale” (Spitzer, 2003). So in the end, you are really not getting much of a bargain. When watching a car commercial, look for the details in getting this new car for your “push or pull,” there should be a description of how much money must be put down at the time of the trade. If this is not being done, you can report the violating car dealer to your state attorney general’s office.
I was assisting Vince in a deal with a new potential buyer. He offered a structured deal stating that he would authorize his company to pay a higher price, if we report selling the product for a lower price. I don’t want to get caught doing this, because I know it is unlawful. Vince reassured me it was not an uncommon deal, and that the product would still be going for a good price. We even had a solid plan on what to say in the event that people suspected us of doing such a thing. The buyer could get half the money, Vince and I could split the other half and no one would ever know.
I felt that this response was the least ethical. Firstly, the salesperson would have taken advantage of the customer for personal gain. Secondly, a salesperson should not assume anything about the customer. If a salesperson were to assume anything, it should be through analysis of the customer’s needs. Even then it shouldn’t be an assumption, but an educated decision.
Adam has a staff of five salespersons. His salespersons are paid a small salary, but the bulk of their income comes from commissions. The commission has two components. The first component is a percentage of the sales price of the boat. This commission rate is negotiated and varies across the sales staff. Generally, Adam starts new salespersons with a small commission with the promise to raise the commission rate if they prove to be effective and remain with the firm. The second component is a commission on the mark-up on a boat. Mark-up is determined as the difference between dealer cost and the sales price. Dealer cost is recorded as the amount Adam paid for a boat. In the case of trade-ins, the dealer cost recorded is Adam’s estimate of the boat’s wholesale value. Prices in this industry are very much subject to negotiation. Sales are negotiated by the sales staff but much be approved by Adam. Adam feels that it is necessary to base much of his sales staff’s commissions on the mark-up on the boats they sell. This reduces their incentive to squeeze Adam’s profit margin in order to make sales. This commission on mark-up is the same for all salespersons: 5 percent.
In the story “Found Money” by Skip Downing, when the spouse of Yolanda passes away, she decides to sell a few of his things. She decides to sell some of his cars that he left her because selling them would help get rid of the clutter and let her be able to buy a new vehicle. But before she sold them, she wanted to make sure that the vehicles would go to people that her husband would have liked. So therefore, she sets up interviews with prospective customers until she’s able to find the right buyers for said vehicles. While she was doing the interviewing, she had four interviewees come in to buy the cars. At the end, the vehicles were unloaded.
People make purchases on the basis of emotion rather than logic. I believe out of my experience that people decide to buy something not because it serves them a purpose but because it feels right to them. After this first stage of buying I know for sure that people start to think of logic to justify their decision to themselves. So it becomes extremely important for a salesperson to make an emotional connection between their prospects and themselves. I make sure that every time I have a prospect I will make a personal connection with that particular prospect. The whole idea behind it is used to generate an interest that touches them internally. This way I made sure that my time is not wasted and I am able to sell more over a selling spree. Therefore, it becomes extremely important for you as a salesperson to close deals on the basis of the emotions rather than selling with logic.
A reasonable closing date, and yes, they would buy the appliances, the window coverings, and a few of the choice antique pieces. He had allowed his memories to go with them.
Is it taking a long time to negotiate the purchase agreement and the purchase agreement comments you receive do not reflect your conversations with the “Seller” named in your purchase agreement?
In recent years, many auto manufacturers have started certified used car programs. Used cars that meet their standards, as well as rigorous multi-point inspections carried out by trained technicians, qualify for this program. Among luxury cars, Porsche has a certified pre-owned program. To qualify, cars must be less than eight years old and have an odometer reading of less than 100,000 miles. All repairs must have been done by trained technicians using genuine parts. The cars also undergo a 111-point inspection by trained technicians, and they come with manufacturers’ warranties
Moyer had to decide the amount she would offer the costumer for the trade in value of the old car.
best price for the car. Instead, the confident buyer of the car will take the price quoted by the salesman as the negotiations starting point. It would therefore be wrong to imply that bluffing is unethical since both the seller and the buyer are positioning them self to maximize their opportunities. The buyer negotiates the price in order to purchase the car at the lowest price possible, while the seller does his best to sell the car at the highest possible price. Therefore, there is no violation of ethical conduct. In the business game, everyone is looking for an opportunity to get the best out of the
...than to explain and educate a customer about the operation of the evaporative emission control system and why it is not working in the car, but no one wants to hear any of that. We are also not salesman.
My wife and I wanted our own home. In order to purchase a home this time, we got a real estate agent. We found a house which was for sale by owner. The seller was also in the process of building a new home. His asking price was a little high but our agent was aware that he was trying to sell before he picked up two mortgages. The seller was very stern on his price and was not budging. Our agent, in turn, asked us to back off and just wait. The house had been for sale for a while so things were getting crucial for the