POD - you've got it. Start an auction at your (realistic) 'resistance point'.
Negotiation theory is an interesting topic- there's quite a few concepts in how it all works, and the winner is the person who can manipulate it all to their benefit, and see thru the bulldust that is thrown around while doing the dance.
One thing to keep in mind is that buyers and sellers have fundamentally different goals! Understand this, and you can make it work for you.
The negotiation starting point is where the bidding starts - might be your $99,000 OBO Toyota camry- (there just might be someone stupid enough to pay that!) or your starting bid of $10 for a widget with an unknown reserve.
Realistically both the buyer and seller have a target point- what they actually want to get- obviously seller wants a high price, buyer a low one. The seller could consider this his reserve price.
The seller and buyer both have a resistance point- the 'bottom (or top!) line' where they will not take a penny less (or more). Probably more applicable for traditional face to face negotiation for a car, a pay rise, etc.
Where these resistance points overlap is your bargaining range- the settlement point, if reached, lives within this.
Sometimes when you have no overlap in your bargaining range, you just need to call it for what it is- 'sorry mate, unless you can raise your offer, we won't be able to make a deal'. I've found when you are open and honest, and the buyer is fair dinkum about buying, you can bring them around- as long as your settlement point is realistic (ie I'll take no less than $80K for that Camry)
When potential buyers start throwing in 'trade' items, you need to understand people will generally trade what is cheap to them, but valuable to the opponent. If you don't value it, it ain't work squat. A good tactic is to use 'if' and 'then' conditions when they arise- If you offer your ****ty chinese quad bike plus a VL diff and a fishtank for the car, then I'll take $300 off my asking price of $X. This helps to solidify your value of their concession, and can often diffuse the offer when what value you're willing to accept from their offer is less than what they consider it worth... What something is 'worth' and what it's value is, can be two vastly different things.
Did I mention it's an interesting topic?
-Mitch
'El Burro' 2012 Defender 90.
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