Best Negotiation Technique

RanchMan · Jun 2, 2003

It's called having a life outside of business, Ranchman. I understand economics (haven't seen any mistakes on your part, by the way), and I also understand that there are more important things in life than making money. 

It is inaccurate to imply that growing a business is an all encompassing, “sell your soul to the devil,” 23.5 hour/day effort. Yes, there are struggles and generally speaking, additional work is involved in order to expand a business, but it doesn’t necessarily follow that just because you grow your business you have “no life.” I have known several small business folks (varying industries) who expanded their operations and kept on “having a life away from work.” All the “good stuff” was still there - religion, family, community service, recreation, and relaxation. Ironic that is implied I don’t “get it” with regards to a personal life since I'm in staunch agreement to your “there’s more to life” statement.

 I would speculate this: he has weighed the opportunity cost of higher volume/bigger business with his desire for leisure/free time and has chosen (not wrongly) that his time is worth more than the trouble of more growth in business. 

Maybe - although I could speculate as well. Maybe it has more to do with economics or complexity of the business in general. ‘Course such speculation really doesn’t matter because when it comes down to it, it has nothing to do with the point I’ve been trying to make (which is an economic one).

I stated in my earlier posts (and once again here) that someone has every right to run their business how they see fit. Personally, again, generally speaking I would like to see businesses grow as I see a positive overall impact. (Kindof funny since I seem to be the minority view on this thread by advocating such an approach when a “lack of job creation” and a “stagnant economy” are at the forefront of every nightly newscast. /forums/images/graemlins/crazy.gif)

I won’t presume to speak for Spencer200 with regards to his reasons as to why he won’t grow his business - it’s his and his choice to make after all. What I stated before, and will state once again since I am apparently not conveying the point clearly is that 1) going on the limited information I have; and 2) based on some fundamental economic principles, if he ever decided to increase the volume of tractors he sells, he most likely could by decreasing the amount of margin he makes. Yes, there are merits. Yes, there are costs. But that was never the real point I was trying to make anyway. /forums/images/graemlins/crazy.gif

RanchMan · Jun 2, 2003

Dourobob-

Some choices are just NOT about more $$$ 

Hmmmm. Point out where I ever said EVERYTHING regarding running a business boils down to a store only making the highest profit possible?

Perhaps you got that from this statement:

"Potentially more money for your company, more jobs for the local population, higher demand for NH products, etc. " 

You seemed to hone on the word “money” and left out the part where I used the word ”potentially.” You also ignored my earlier post (when talking about increasing sales volume) where I said:

"Doesn’t necessarily mean you would make enough money to cover your costs (have no idea how efficient your operation is), but your sales volume would go up.”

So, Let’s see - I point out [/i]before 19th’s post[/i] that (1) increasing sales volume may NOT gain enough money to cover costs and keep a company in business (i.e. the company may make LESS MONEY due to lack of sufficient revenue); and (2) that increasing sales volume may potentially - not a guarantee - add to a store’s profit.

You also seem to forget I mentioned benefits that have no direct monetary gain for the store/company by expansion - i.e. job creation. More jobs means more people can take care of themselves and their families - and that is bad, how??? Health benefits, employee services, larger tax base for the town/city to provide better roads, fire protection, etc.

No Dourobob, the fact of the matter is for whatever reason you are unfairly characterizing my statements and misrepresenting my point - which was always a simple one based in the tenants of economic principles. If you don’t agree with them, that’s fine - but don’t imply that I’m saying things I’m not.

bogeygolfer · Jun 2, 2003

This has got to be the longest thread ever!!!! /forums/images/graemlins/confused.gif

RanchMan · Jun 2, 2003

WVBill -

Ditto - and there's also the "service level" issue. The general perception that "big" businesses give less/impersonal service is not unfounded. 

And it isn't correct to characterize every "big" (whatever "big" is defined as) business as providing less/impersonal service either. Unfounded? No - but not such a certainty as you seem to state either.

Yes - I've had poor service from "big" stores/companies before - but I've also had TERRIBLE service from "small" stores/companies as well. I've had the reverse as well - fantastic service from both "big" & "small" companies/stores. It has far more to do with the ethics, morals, policies, procedures, and overall attitude set forth by management and adhered to by the employees than simply the size of the business.

 Perhaps Spencer2000 has decided that he would rather provide quality, personal service than make megabucks. 

Wrong. One does not dictate the other as you imply. See above statement and post to Dourobob. I would appreciate you not jumping on the mis-characterization bandwagon.

Whiskey · Jun 2, 2003

And it's getting old too.....what happoned to "best negotiation technique" we seem to have gotten off tract here

Whiskey

RanchMan · Jun 2, 2003

And it's getting old too.....what happoned to "best negotiation technique" we seem to have gotten off tract here


I completely agree. /forums/images/graemlins/crazy.gif

Started with a basic question, ended up some dealers trying to help but saying stuff that others didn't agree with, then degraded in to a long winded (guilty) tit-for-tat dogfight about economic theory & the benefits/drawbacks of growing a business complete with attitude and the usual unpleasant stuff that tends to creep in some times with heart-felt posts.

Glad to see Nomad (post below) got the thread back on track! /forums/images/graemlins/smile.gif

nomad · Jun 2, 2003

Best Negotiation Technique? It is "not to negotiate. "
Anyways, a customer will always be a loser against a trader who deals with many customers everyday. The best a customer should do is

1) ask the price by telling the dealer "I was just passing by the shop and I had no plan to buy", and add "who knows, I may buy"

2) go out of shop whatever the price dealer offers.

3) Repeat (1) and (2) at other dealers' shop, especially those who don't like each other.

4) go home. tabulate all prices you got from different shops, tabulate also other advantages and disadvantages like who were friendlier, who would provide better service, etc etc.

5) top 3 dealers who will get your higher positive points will be winners. You visit them again to tell them "you changed your mind and decided to buy" and ask their final price they could offer.

6) visit other 2 dealers too and ask them their final price.

7) so far, you have 3 dealers revisited. Now, chose the dealer with the best price you have got.

8) now you already decided to go to that dealer you would certainly buy. But do not let him/her know yet you decided to buy. Before making final purchase, talk about some irrelevant topics like weather, sports, etc. I mean make him/her get tired. He/she will offer a few percent further discount because dealer would hate to see you again.

9) Accept that final offer. Enough is enough. You made the best deal. What else you want.

Ps: If a topic is started, I can also tell a few tricks for dealers how to negotiate with such hard customers. Quote: Negotiation is the war in the peace.

JohnMiller3 · Jun 2, 2003

… Mahindra manufactures Utility tractors in India... On a world wide basis they sell almost twice as many tractors as JD does…

Hi!,

I always hear a number of claims about Mahindra big sales numbers (& other want-to-be tractor mfrs.), but have never seen any proof… /forums/images/graemlins/blush.gif … other than “repeatability” from people’s mouths… either they have the best non-stop rumor going or we are being “buffaloed” …/forums/images/graemlins/laugh.gif ( pun intended Woodbeef /forums/images/graemlins/smile.gif)

Can anyone out there in cyberspace, provide some written documents (plural) that supports this claim with Mahindra… (of course NOT written by Mahindra and being a third party would be somewhat more believable…/forums/images/graemlins/wink.gif)

Chipperman · Jun 2, 2003

RanchMan
I have been following this thread and have found it quite interesting. Just out of couriosity do you have any personal experience in operating an equipment dealership? (No disrespect intended).
Chipperman

19th_VA · Jun 2, 2003

Uh oh--here we go again...

In response to JMIII's question, I found this link:
Article on Indian economy

I glean a couple of interesting facts from this article, neither of which answer JMIII's question:
Mahindra was the leader in tractor sales in India in 1996-97 but only had abou 1/4 of the market share.
John Deere and New Holland entered the market in India during this time period.

There might be more here but I gotta go for now...