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by mrb 845 days ago
10 years ago I walked in a dealership to buy a used car and employed a negotiation tactic that I had recently learned online. The problem was that the technical price negotiation worked so incredibly well that I basically got (politely) thrown out of the dealership.

The tactic was simple: disarming empathy. It was a method presented by a hostage negotiator via this NPR podcast: https://www.npr.org/transcripts/167802325 Basically you agree with the salesman that whatever price they are offering is actually very fair, and in a normal situation you would accept it... but you apologize profusely saying you just can't spend this much because it is too expensive for you. When he says such and such product quality justifies the price, you wholeheartedly agree with him... but you can't afford this.

So that day I had identified a specific car I wanted, online, at a dealer in my area. I went in to see it in person. I explained I was ready to buy it today, got sat down at a desk with one of their salesmen. And he starts by presenting his price. I explained it's a really good price, but I really can't afford that, and asks if there is anything they can do to reduce it? After a while he says, sure, OK, what about this new number? And basically I keep doing the same thing over and over. I profusely thank him for reducing the price, but explains it's still too much. Over a span of 20 minutes, he cuts the price down 5 or 6 times, up to a point where I finally say we've reached a price that I am able to afford. I don't remember the numbers but I think we had started around $19k and got down to $16k. The salesman is mildly happy, but I distinctively remember him not being that enthusiastic. He said he's going to get the paperwork ready to finalize the sale. He leaves me at his desk while he walks way. And a few minutes later he comes back, with a very sad look on his face, and apologizes while explaining that the owner of the dealership refused to let the sale close at this price. He says there is nothing he can do for me, shakes my hand, and remains awkwardly silent, then apologetically stood up to make me understand it was time to leave. I kept thinking the guy probably had just been yelled at by the owner about he could have screwed up the negotiation so badly.

2 comments

Maybe the owner figured out your game and explained it to the salesman, who then proceeded to use it on you.
Obviously the salesman had made a mistake. He must have had a floor price, and accidentally went below it in the heat of that powerful negotiation tactic. And it was impossible to resume negotiation after that, as he had lost all credibility because he was negotiating price levels that he didn't have the authority to decide. What was he supposed to do? Say "forget about the $16k we just agreed on, how about $17k?"
If that's the case it didn't work - the goal of a negotiation is to come to an agreement. It's trivial to disagree.
Maybe the salesman let his ego get in the way ?
This has happened to me, except there was a couple looking at the same car on the lot, and they didn't try to negotiate, they just took the higher price, while I was negotiating. So by the time I got the lower price it had been sold. I ended up later buying a different car for a lot more money than even the sticker of the first car.