Friday, October 5, 2007

NEVER give a 'good deal'

If you want to sell something, NEVER ever underprice it.

1) Buyers will be suspicious of a 'good' deal. They're used to overpaying or 'paying fair value'. Whatever that means.
2) NO ONE cuts themselves short. Everyone takes maximum profit, so #1 is doubly true.
3) You're more likely to sell it if you OVERPRICE it. Veblen good.

For example, I tried to sell my car by 'underpricing'. Right away everyone said, what's wrong with it? GRR! I thought selling it for cheaper than 'market' value would sell it quicker, WRONG. It didn't sell for 3 weeks. I put the price OVER market value (I was angry and wanted to prove a point) and it sold in 2 days. People = stupid.

1 comment:

SavingDiva said...

Great story! People can be ridiculous!