Dear Don: I have decided to sell a set of silverware that I recently inherited because I already had one. My husband told me that I need to price it considerably higher than I expect to sell it for because I can always come down in price but I can’t go up. Do you agree with him? Elizabeth R., Tampa, Florida.
Elizabeth: No, no, no, – absolutely not! Tell your husband to go fishing, play golf or whatever and leave the selling up to us. Now that you have got him out of the house, let’s talk. Based on a 22-year record, 82% of my sales were made for the asking price, leaving only 18% for which the buyer negotiated for a lower price. That fact forces me to conclude that 82% of all buyers will not even respond to your ad if they believe that your silverware is priced to high. The fact is that this large percentage of buyers simply do not like to, and will not, negotiate by offering you a lower amount. That leaves only 18% of prospective buyers that will even consider contacting you about your silverware. I don’t know about you, but I don’t like those odds. I had much rather my ads attract 100% of prospective buyers, wouldn’t you?
So, here’s my advice: Arrive at an absolute minimum price that you are willing to accept for the silverware, then add no more than 5% to that amount to arrive at your advertised price. The added 5% will permit you to accommodate the 18% of buyers that must always negotiate for a better price before they will buy anything. Yet, your price will still appeal to the larger 82% of prospective buyers. Now call your husband and tell him that it is safe for him to return home, but don’t tell him about our little secret.
Donald L. Turpin, is the author of Penny Power, a book of true, chronological and humorous stories about how he parlayed a $100.00 cash retirement gift into over $50,000.00 cash using classified ads.