I’ve hounded you on the stupidity of “rules of thumb”, here’s another…
‘Buy at a discount’.
It’s the typical investor mantra that actually backfires.
They quote people like Charlie Munger who says:
“Price is what you pay and value is what you get!”
But investors (mistakenly) apply that to ALL areas of their life.
They forget to read about Charlie’s life a bit.
Where he paid MORE than full retail value when buying businesses from friends or old ladies. He didn’t try nickeling every deal so he could feel superior and “get a good deal”. His rule of thumb only applied to stocks, on Wall Street.
And it should only apply to you when it comes to buying houses as a business.
I bring this up because I run into people who want to get into negotiating fisticuffs on SERVICE prices.
Probably the dumbest thing you can ask discount on.
The late Jim Camp (the world’s best negotiator and Chris Voss learned from him a bit), didn’t haggle prices either. When you do haggle someone down you’ll pat yourself on the back because you feel like a big man and won that “battle”. But the other person now feels envious and resentful — terrible feelings to have in a partnership, JV, or simple service agreement. Do you think that person wants to deliver the same value? Or do business again?
It’s why I shake my head when I see hagglers nickel and diming for a couple hundred dollars (on a service that costs thousands).
My guess is they have to make up what they lack in other parts of their life…
Or they just can’t think outside rules of thumbs.
Anyway…
I’ve been reading Charlie Mungers “Almanack” and I’m glad he agrees with me
As for you, I highly suggest thinking about the after-effect of what you do (or ask). Many don’t.
If you want a thorough follow-up system that has been well thought out to make sure you don’t sound like an annoying pest, builds value and credibility… and actually does the job of SELLING…
For you past clients, I’ve updated the frequency and content of the Missed Call and Signed With Someone Else sequences. Let me know if you’d like us to update that.