Don't Fall Into Dumb Buyer Syndrome "DBS"
If you were to conduct a Total Cost Analysis (the cost of using the product and/or service over it's projected life span or length of your ownership) you will find in most cases the cheapest buy will probably be the most expensive. For example;
Car A is priced at $12,000 and Car B is priced at $18,000. Car A depreciates quicker and in 4 years it's resale value is $6,000 and Car B in 4 years is valued at $12,000. The expenses required to maintain Car A over the 4 years is $2,000 and Car B is $600. Therefore after 4 years Car A cost you $14,000 less trade in at $6,000 = $8,000 and Car B after 4 years cost you $5,400 after trade in at $12,000.
What this simple example demonstrates is that Car B is the better valued car. It is cheaper over the life of ownership and you will probably enjoy a better quality and safer ride than Car A.
So when a potential customer wants to negotiate on price and not negotiate on value, in other words compare apples to apples, I call these buyers my DBS clients. In other words, I mark the price up higher than what I sell to other customers to let them feel powerful when they skillfully get my price down to what is usually higher than my smarter customers.
Don't be a Dumb Buyer!
Related Tags: total cost analysis, savvy negotiators, dumb buyer syndrome
Ray MacNeil writes in his Blog daily for New Entrepreneurs and those people considering the move into Self-Employment. His blog can be found at: http://franchisefun.blogspot.com
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