Nov

29

 1. You often get the other side so angry that he walks away from the deal.

2. The counterparty sees that you are only interested in the short term money and you are not interested beyond the dollar and clock and won't hire you.

3. You can only get the edge on someone once and the next time he will save the good stuff for someone else or get even with you.

4. You get known as an ephemeral person.

5. The other side when he thinks about how you got the edge on him all the time ultimately bears many hard feelings and there is a backlash of unpleasantness much greater than the amount at issue.

6. You become a short term person only possibly getting short term edges and miss out on the big deals.

7. You lose the big for the little.

8. Loyalty is lost.

9. You look cheap to your other half and she hates all the unpleasant situations you get involved in as you haggle.

The above comes about because a lecturer at the Junta tried to get an extra edge on me. It reminds me of the time I had a chemical company for sale. The owner had a 30 million deal signed and sealed. Then in the car, he asked a wasp public company owner for 1 million more. The public company got so mad he thought he couldn't trust the guy and canceled the deal. The owner eventually sold for 1/10 the price and his life was ruined.


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4 Comments so far

  1. Ed on November 29, 2011 10:17 pm

    ED Thorpe has a story about this on his web page. It went something like this. Years ago he was selling a beachfront property in Malibu, California. The buyer was ultra-aggressive, haggling, putting in a low-ball offer, etc. Thorpe told the guy to take a hike. When the guy came back agreeing to pay a better price, Thorpe was not interested. Such unpleasant people, in his opinion, where not worth the aggravation. He sold the property to a nicer person at a “fair” price. Of course the upshot is that property today is worth a substantial fortune, and by being an *sshole the haggler missed out. I read the story years ago, so my version of the story is not 100%. Check the articles on his web page to get the accurate account.

  2. Name withheld to prevent divorce on November 30, 2011 12:41 pm

    Re #9 - it made me LOL.

    My Wife & her family love to nickel & dime. To them its all sport - to me its terror.

    I’ve made a living over the last 15 years making deals on back-of-the-napkin math, gentlemens agreements & handshakes. It’s a point of pride.

    I never go for a decisive win as I know it will aide me in bigger picture deal making sometime down the road. I also never want to have future deals with people who are intent on beating me; I just can’t get past the bad intent I suppose.

    My wife, god bless her, doesn’t see things that way.

    [name omitted to prevent bedroom reprisals] caused me to lose the best housekeeper we ever had, b/c she decided she wanted to lower her daily compensation by $5.00. She worked for us for 3 years, 2x per week and never missed a day. Poof, gone. I only found out the reason why when I called her to find out why she quit.

    I’ve watched my wife infuriate all types of people from potential home buyers and sellers to dentists and car salesmen.

    The things she does during negotiations usually cost me a degree or two of self respect. I find it hard to not laugh or blush depending on the situation and it doesn’t matter the size of the deal or the other parties standing - she will fight just as hard over $1 as she would for $100k and she doesn’t care if you are a waitress or a CEO. To her its all about the deal in front of her. She just doesn’t see it as a whole picture.

    It is unpleasant to say the least.

  3. Steve on November 30, 2011 5:18 pm

    “Penny wise, pound foolish.”

  4. Ron Parker on February 14, 2013 9:58 am

    In my 55 years I have seen the public become increasingly apathetic about being nickel and dimed, that is why cell phone and cable bills look the way they do. So I showed my kids one day a column of numbers in our checking account, and asked them to guess how much it added up to. They both guessed about $600 since most of the numbers were in the one and two digit range. It was $1500. Credit card companies have long counted on this well kept secret of knowledge gap in human nature - the inherent inability of people to intuit when nickel and diming is occurring. Not surprisingly, an internet search on “nickel and diming” revealed NO books or other instructional materials for the public, not even any “mathematical” term for this underrated concept. I think with such instruction, the public would begin to save billions.

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