When is a low offer an insult?

toolguy_35

coming over from another thread...

wouldn't this be one of your never-to-be-used rebuttals wonderboy?

Pat

Wonderboy

My statement:

" don't know if this would be permitted in your job. If someone is low balling you, show them an ad with a house that's closest to their range and suggest they have a choice to go with that house (presumably with some undesirable features) or going with what you have to offer.

This avoids arguments and my guess is some will settle on the spot and some more will get back to you later on."

My assumption in this scenario with Thomas is that Thomas made
his offer and the prospect then responded with his own low-ball offer. Thomas would then repeat his offer to let the prospect know that he's not going any lower or go somewhere else (the picture of the house with the undesirable features, but with the price the prospect wants - by the way part of my assumption is that the prospect is really making an unreasonable offer).

Note that this isn't a total no or turndown on the part of the prospect, but still in the negotiating stage so Thomas is saying it's not open to negotiation, but on a take it or leave it basis while giving the prospect an option at the prospect's price, but different features as the market may dictate in this scenario (by the way,
qualifying the buyer in this case would save time).

toolguy_35

That's what rebuttals ARE wonderboy, part of the negotiation.

Pat

Jolly Roger

I'll take Sales Resistance/ Negotiation for $100.

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Wonderboy

LOL.

Toolguy,

In a negotiation, there's give and take. Thomas made it clear that he wasn't accepting the lowball offer so the negotiation stopped at that point. My suggestion to him to show the prospect another house in the lowball range with features that would be different is simply to demonstrate to the prospect that he wasn't in the market and to suggest he try elsewhere as the prospect wasn't ready to do business at Thomas's price (just a way of politely dusting off a non-prospect - if that person was interested, then he'd return later although that rarely happens).

Again, in a negotiation, there's give and take so there's no definite
yes and nos until both sides settle on their final price which means a deal if the prices match up. Since minds haven't been made up in a negotiation as adjustments may still be made, then there's nothing to rebutt (check my definition).

MaxReferrals

The problem here is often people toss out figures without any
justification for how they arrived at those numbers.

Thomas

I see that too. I ask the buyer what he wants me to tell the seller when the seller asks me why the offer is so low. Some buyers give reasons but even more don't.

Ray47

I agree with you Jolly Roger

Sales Pro 1000

In my field when a potential customer tries to get away with a low ball offer it shows that I did not do sufficient pre-qualification in the form of open ended questions.

I'm not going to spend enough time with someone like that to allow them to even make an offer unless ...

If during the pre-qual I determine the guy/gal is sincere, has money to back it up, and I know enough about the seller to know that the offer will be graciously looked at.

Now we get into negotiation skills 101. If the seller wants $300K for example, and my buyer wants to pay $200K you present the offer. The next step is called "nibbling"....which is to say the counter from the seller will be for $295K and a decision in four hours or less.

Chuck

dodobird

Jolly Roger,
Do you think a Customer will tell you that they are insulted by the offer?

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When in doubt - Go flat out