Bargaining on an item: How low is too low?

Martin

Hey guys. I rarely buy anything of any worth. There's an instrument I'm looking at, it's vintage, from one of the best years the instrument was made. It was appraised at $7000, but in the words of the seller, "I'd be willing to take it down if you make me a reasonable offer." I'm thinking that if I was selling it, I'd take 6500, would 6000 be seen as a reasonable offer? This IS a collectors item, and at the same time one of the best instruments of its kind.

What do you guys think is a 'reasonable' offer? IS there a standard for this?

TaGuelle

low ball to see the lowest price. its business not friendship, he won't take it personally

Improvolone

Sure, why not? If he won't take, he'll PROBABLY counter offer.

Martin

Yeah I guess. He's a friend of a friend, and we're both starving jazz musicians, so I don't want to rip him off, but I guess like you said, he'll just counter offer anything he doesn't like.

corcorigan

Well he won't sell it for any less than he thinks it's worth, so don't worry too much. Business is business after all...

AtomBomb

Generally, I've found it best to low-ball so that if you split the difference you end up where you want. For example, if you're willing to pay $6k offer $5k and when he meets you in the middle you'll end up at $6k. Hope that makes sense. I've also been surprised at people who just take the low-ball offer.

EggyToast

Exactly. If someone is willing to negotiate, they likely will have a "bottom price" that they'll go no lower than. You can offer lower, but they'll almost always counter offer unless it's an insulting price.

For instance, if you believe the $7000 guitar to be worth $6000, and you only offered $2000, he would laugh and simply not negotiate with you. If you were close, say $5000, he'd probably say "well, how about something closer to $6250." And you might say "Hmm, that is a better deal; how'd you feel about $6000, and I'll pay you today?" And he'll take it. Or $6250 is his "lowest possible" and he'll say "Nah, I can't go below $6250, I know it's worth at least that."

The thing about bartering is that unless you have inside knowledge, you usually pay closer to what YOU think the item is worth, rather than its actual cost. Which is fine, when you think about it -- not everyone has to always get the lowest price for everything. I was down in Mexico with my wife and she bought some blankets and shirts, and even though she could've got them for a lot cheaper, she'd rather support the people she bought from. So if she bought a handwoven blanket for $25 instead of $20, who cares?

The flipside is junk like fake rolexes; I've got a buddy who snags a new watch at festivals and such, by simply refusing to pay more than $20. Sure, the watch guy sells them for $40-60, and says "hey this is quality, your price is insulting," but my friend just repeats "I'll pay $20 or get it somewhere else" and if the guy doesn't capitulate, he walks away. He usually gets called back with "oh fine I'll sell it for $20."

But yeah, for items that you feel are at a fair price, the general rule I use is to think about what it's actually worth to you, and offer 10 or 20% less. If I would buy a piece of musical equipment for $200, I'd offer $175 -- even if it was priced at $250. Stuff like that. You can offer more if you're a friend or if you want to, but that's how I generally approach it.

PorkChopSandwiches

What model/make instrument?

Martin

Mark VI tenor sax relacquered in early 60's, 76xxx serial number, so 1958 vintage. Everything I've seen on web stores are similar in price, if not slightly more for a younger horn (which aren't as valuable, the pre 1960 selmers are the best years).

amateurhour

It doesn't matter if he's a friend of a friend or your best friend man, it's business, like everyone is saying. If he's asking seven, he's probably willing to take six, or less even. You need to find the number that YOU want to pay for it, so if you don't want to pay a dime over $5800, then offer 5, he'll offer six, you offer 5500, he offers 5800, and hopefully its the end of the story. Good luck though, that sounds like a sweet instrument.

PorkChopSandwiches

Martin wrote: »

Mark VI tenor sax relacquered in early 60's, 76xxx serial number, so 1958 vintage. Everything I've seen on web stores are similar in price, if not slightly more for a younger horn (which aren't as valuable, the pre 1960 selmers are the best years).

I've seen Mark VIs go for just over $6000 in really good shape. I think you would be fine offering him anything over $6000.

Martin

Thanks guys, he took 6. And yeah, if they're not relacquered they can go for 10-12k at that vintage.

Uncle Long

I don't know if you need further input, but I usually try and keep my bargaining at a 10% reduction of whatever they're asking. Usually you get a good deal and they don't feel insulted by your offer.

PorkChopSandwiches

Enjoy an excellent instrument!