In 2019, the United States market size for used goods was worth a whopping $20 billion. In recent years, this industry has consistently outperformed the overall retail market in the country.
One of the chief reasons consumers opt for preowned equipment is that the items usually come at a better price than brand new items. Of course, if you know how to negotiate pricing, you can get an even lower price for any pre-owned item you’re interested in.
We understand that for many people, the idea of negotiating can seem intimidating. Most consumers have learned to pay the marked price of an item without asking any questions. When the price seems too high, many consumers simply abandon the sale and seek cheaper options.
You may not have realized this, but you can always bargain for a lower price when buying anything. In this friendly guide, we show you how to get the lowest possible price for any secondhand equipment you’re purchasing.
Read on to learn more.
What Do You Bargain for?
In most cases, consumers negotiate over the prices of products or services. You want to get the best possible price for the product or service on offer.
But bargaining can involve other things as well. You can negotiate for additional features to a piece of equipment, for instance, or ask that the seller customize it to fit your needs. Some clients also negotiate for services like delivery and installation.
Generally, there are two approaches to bargaining: aggressive and positive. Let’s examine them more closely:
Aggressive Bargaining: this approach involves pointing out why you’re willing to go elsewhere if the seller doesn’t offer bargain prices on items you want to buy. Sure, this approach can help you get a great price, but it will most likely destroy your god relationship with the seller.
Positive Bargaining: this type of bargaining involves pointing out why you’re the ideal buyer for that particular piece of equipment. The aim is to get the best rates while still preserving your relationship with the seller.
In the following section, we share five surefire tactics on how to negotiate a lower price for any equipment you want to buy.
How to Negotiate Pricing on Equipment
So you’ve identified a piece of equipment you like and are determined to acquire it for your business. How do you get the best possible price for it?
1. Do Your Research
The most effective way to arm yourself before any negotiations is to do your homework on the equipment. Here are a few things you need to find out:
What Competitors Charge
Take the time to find out the going rate for the equipment you’re looking for. If you’d like to buy a preowned generator, research the price of Used generators in different stores in your area. If you can demonstrate to the seller that you know the equipment is available for a better price, it puts pressure on them to reduce their price.
The Cost of the Item to The Seller
Is there a way to learn how much the seller might have bought the piece of equipment? If you can, then do so. This way, it’s easier to know the margin between the asking price and the costs your seller incurred for the item.
This information helps you make an intelligent guess on the lowest possible price the seller can accept.
Deadlines the Seller Might Be Facing
Where the seller needs to get rid of equipment before a deadline, they’ll be more motivated to accept a lower price. In such cases, the seller is more interested in meeting the deadline than making money from the deal.
The Reason for Selling
You don’t necessarily have to buy the equipment from a business. Sometimes, you buy from a seller who isn’t looking to make money from the sale. It could be that the seller is relocating and is ready to accept a very low offer to get rid of the equipment.
2. Don’t Be the First to Name a Price
Where the item does not have a marked price, wait for the seller to name their price. That acts as the anchor price. Once the seller has set the anchor price, you have a chance to counter with a number that’s much lower than you’d have offered initially.
Keep in mind that when you name the price first, you limit how low you’ll be able to go during negotiations. Every counteroffer from this point will be higher.
3. Don’t Try to Be Reasonable
A typical negotiation involves each party naming their price and the two finally settling in the middle. Avoid this approach entirely.
Once your seller has named a price, give a counteroffer that’s ridiculously low. Your offer will usually force the seller to abandon their negotiation strategy and try to get your price higher than the offer you made. In the end, you get a price that’s much lower than what would be considered reasonable.
4. Determine the Price Limit
Understand the goal of the seller. If they’re looking to make a specific amount of money from the sale, then know that they won’t budge when they reach a certain price. There’s no point trying to negotiate rates beyond that point.
Remember, it’s always good to let the seller feel like they got something out of the deal. That’s why, as we pointed out, you need to try to know what the seller paid for the equipment.
5. Be Ready to Walk Away
This tactic is often the most effective. Few sellers are willing to lose a sale in this economy. No seller wants to let customers walk away without buying a product.
Often, simply ending the negotiations verbally and heading for the door can motivate the seller to make a lower offer. Even if you do walk away, the seller will most likely call you back. While this tactic is extreme, it works in many situations.
You Can Get Better Rates on Any Product
For those who know how to negotiate pricing, buying equipment can be a fun experience. Fortunately, anyone can learn the art of negotiating if they set their hearts on it. All it takes is knowing the market, learning what to say, and being ready to walk away.
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