In my March to 1000g podcast series I go through several trade channel negotiations to make big deals, exactly what I say and do and think. I believe that this topic is itself worthy of a small series and so I’m going to cover the Art of Negotiating in several posts. These techniques will be applicable any time you chat or barter with others, and will be particularly effective when the trade channel helps open up negotiations. The first part is attitude.

• Always be open to negotiation. It is the basis of trade. People expect it from honest, real people, (and even dishonest people) and respect you when you budge a little but not a lot. But you’re not necessarily after they’re respect, you want profit. Negotiation has the benefit of making things happen - it’s like the enzyme in any deal. A stubborn seller gets two choices: either a yes, or a no. Either 100% of what they’re asking, or nothing. A negotiator gets 100%, 50%, or 150% of what they really want, but rarely nothing. Their money is active and working even when they make less of it.

  How many times have you wanted something and asked what the going price was, and the seller wouldn’t budge? C’est la vie for you right? But if the seller would be willing to go down even a little, it would make you more willing to go up even a little. A deal is eventually made and you’re both happy, well… happier than if he still had it and you still didn’t. That little bit more is easy to rationalize after all.

  The great thing about negotiations is that whatever it is that you’re negotiating usually starts with both sides already nearer an extreme position than to a bargaining position. This usually means that, whether retail or the AH, prices are usually set at the ideal price people thing that buyers or other opposite side is willing to accept. Retailers try and lock in the price with a huge profit. So do sellers at the auction house. Yet, most people will accept lower, even just a little, if they can sell it and make a profit right now.

• Keep your emotions in check - at least until you have money in hand, and don’t let the other you’re bargaining with notice it. High emotions can escalate any reservations that a buyer might have, leading to preventing a deal from taking place even if one was in motion - the others can sense that you are excited just by your speech and that you just want to make the deal. They will often then bow out at the last minute due to a gut feeling.

  This is especially important when closing the deal. When negotiating a fair price, use phrases like “would you be open to negotiation?” or if you’re selling something, “the average price is usually xyz, but if you can do n, then it’s yours”. No emotion, just business, and friendly as well. People are open to this kind of bargaining on the whole. Those that aren’t are usually brash people you don’t want to be dealing with anyway. Even if you can’t go lower, at least be friendly about it: “sorry, but 300 was as low as I wanted to go”. What you are really doing is giving them every chance to change their mind. If you’re curt, smug, stubborn, you’re essentially willing all but the desperate to go away and not bother you with every sentence. Often, by being polite and keeping your emotions pleasant and business like, you will profit in the end.

  Be sure that before you have money in hand, you are not over-excited, and maintain a business-like nature. This will focus both parties into completing the deal. Then, feel free to open up and even make them feel good about it by using the truth: “I’ve heard from others that it’s a nice item” or if nothing else, “thanks, and good luck!”.

• Know what you want - even if you don’t. Have a number if you’re offering to buy something, and if you’re not sure what it should be, make it up. This implies confidence even if you’re not. If they in turn laugh, you can too but it’s not too late to say “ok, I’m willing to go 350″ and be serious. If the buyer offers you too low a number, do not just say “that’s too low” because that begins to escalate the emotion. Say something like “the item averages much higher but I’d be willing to take xyz” or “if you can offer 100g more, then it is yours”. The point is, do not just hope that they will magically offer you an ideal amount. Have some sort of idea of your own magic number. If you’re unsure, consult like items in the auction house, or on a website such as Allakhazam before you’re selling. Another popular method is to just simply ask others: “what is the usual going price for xyz?” Many will be more than willing to quote you a number.
• Do not let the losses get you down. Of course it can be frustrating (even very much so) but realize that everyone at some point loses money, simply because it takes some amount of risk to make money. If you’re not risking anything, you’re not making as much as you could be. It will happen on occasion and is part of the natural cycle of making money. When you know you’re heading for a loss, it is important to focus. Make your goal to minimize it and move on as quickly as possible. Focus on selling that item, reclaiming as much of the money spent as possible, and using it to buy something else with a better profit margin.

  Often when I’m trying to get rid of something quickly, I will simultaneously put it in the auction house as high as I think it will sell, but also be pro-active and advertise it on the trade channel, putting special focus on the item so I can get it out of my inventory and move on. If I manage to make a deal in trade or chat, I’ll cancel the auction house and personally deliver it. Don’t ever tell them they can buy it in the auction house when you can deliver it in person and make sure the deal is done.

Tags: negotiation, trade channel