Heat-Up Your Negotiations by Using this Refrigerator Salesman's Trick
One of my client-taught classes pertained to Negotiation.
I was working with the owner of a rather large appliance store in Los Angeles and he gave me a tutorial on the three grades of refrigerators. Each, of course, was separated from the other by price, about $250 in each grade.
So, you could purchase an entry level fridge at about $500, a middle grade at $750, and the top of the line started at around $1,000.
"Guess which one is most profitable to us" he challenged.
"The most expensive, I suppose" I offered back.
"Wrong!" he beamed, obviously relishing his victory over the professional smart guy.
"It's the middle grade, and can you guess which one most people end up buying?"
This time, I was ready.
"The middle one?"
"Exactly," my client pointed out.
He went on to tell me that the most expensive model was the one that he made the least profit on, which, you have to admit, is counterintuitive. He also said, feature for feature it was actually the best value for the customer and the most durable.
People like choices, he went on, and if you can offer three grades of anything, they'll gravitate to the middle because they think it's SAFE.
They could do better or worse with regard to their investment, but the middle just feels right.
Remember this the next time you're negotiating. Don't just offer a high and a low.
Always include a most profitable "middle" choice!
Related Tags: sales, keynote, convention, ucla, customer service, tele-sales, negotiation speaker, negotiation consultant
Best-selling author of 12 books and more than 1,000 articles, Dr. Gary S. Goodman is considered "The Gold Standard" in sales development, customer service, and telephone effectiveness. Top-rated as a speaker, seminar leader, and consultant, his clients extend across the globe and the organizational spectrum, from the Fortune 1000 to small businesses. He can be reached at: firstname.lastname@example.org. Your Article Search Directory : Find in Articles
Recent articles in this category:
- North Minneapolis 2009 - "40/40/40 Community Benefits Agreement" Must be a Part of Business as Usual to Help Community Growth
"If it's not growing, it's going to die." ...Michael Eisner In 2009 north Minneapolis community
- Negotiation Probes
Your negotiating leverage is determined by how much you know about the other party's attitudes, pre
- Keep Negotiating Tactics Flexible
There is no right negotiating tactic if you have the wrong strategy or policy. Strategic objectiv
- Resist Like Water
The Chinese have a saying, "It is well to resist like water." When water is put under pressure or
- Negotiating Threats
Have you ever been threatened during a negotiation? You probably have received more negotiating thr
- Lyons & Wolivar, Inc. (l&w Investigations) to Teams Up With Smith & Brink at Iasiu Expo
WESTBOROUGH, MASSACHUSETTS...L&W Investigations, the foremost private investigations company specia
- Negotiating Starts With Assumptions
Most negotiations start with both sides having a set of assumptions regarding what the other side w
- How Do You Respond to a "take it or Leave It" Demand?
What do you do when the other party gives you a firm but polite "take-it-or-leave-it"? There are op
- Why You Should Have It In Writing
There is an old saying in the West that says that if the preacher talks too much about stealing, be
- How to Get a Fair Insurance Settlement
Natural disasters such as wildfires, hurricanes, tornados, and floods have been making headlines.
Most viewed articles in this category:
- Ecological Negotiation
Negotiation is a process of trying to arrive at a mutually agreeable conclusion about something. It
- How to Negotiate Like A Pro In Long-term Negotiations
Ever notice that negotiations usually go much better when there is a history of trust from previous
- Let's Just Split it Down the Middle
Everybody's Used ItIn the realm of give and take it's almost genetic. On every continent, in every c
- The Art of Negotiation, Investing in ART, Investing in YOU, Its About the MONEY Honey! Part One
As an artist it is hard to not feel flattered when approached by a gallery. If you are a profession
- The Art of Negotiation, Investing in ART, Investing in YOU, Its About the MONEY Honey! Part Two
Part Two:Ask questions, sheesh, never be afraid to ask questions.Don't be intimidated by people, the
- The Gender Blenders-How Successful Men and Women Mix-It-Up in Negotiation
Our early ancestors settled on a division of labor, dictated largely by biological necessity: The wo
- IT Contracts Negotiation-Who Lead-Legal or Commercial
While I have nothing against Lawyers leading any negotiation and believe they have a major role to p
- Effective Questioning in Negotiation
Effective questioning is a powerful and often underused skill in negotiation. Asking questions has m
- I Wonder Why Do Procurement Departments Still Exist Today?
I am amazed that it is taking such a long a time for procurement departments of indirect goods and s
- How To Structure A Negotiation
People who are successful negotiators, always have a well thought out strategy before entering into