Tell HN: Four (hopefully) unique and useful start-up tips

a) try to understand the costs associated with the product/service you are buying as much as possible before you make an offer. in other words, assume a reasonable price someone is putting on their labor and try to quickly estimate to the total cost of materials. if the price they are quoting is out of line, your job is to put them in line. a notorious industry for this is plumbing and electrical work. plumbers try to get away with murder, often charging what equates to $400 an hour for work on top of material cost. $400 is unreasonably by any measure and you'll find that they agree too when you push them hard enough.

b) never, ever pay more for something than what it's really worth to you. this seems a bit silly and self evident but you'll be surprised how often people violate this rule. this requires a bit of self reflection.

c) the most serious buyers are the ones who ask a lot of questions. ask questions and you'll be taken seriously. it will also help you understand them and where they are coming from.

d) regardless of whatever they may try to make you think or believe, if you have the money, you have the power. period.

e) most important rule of all, never be ashamed of your offer and take it very seriously. they'll take it seriously too and it will force them to reflect hard on their offer. As shakespeare said, all the world's a stage and all the men and women merely players

Here are some ground rules and the steps I use to haggle: Haggling works better if you can pay in cash. Know how much you are willing to spend and do not exceed it! Never, ever reveal to the salesperson how much you are willing to spend.

1. Express a casual and not too focused interest in the item (HDTV is a perfect example).

2. Show that you understand the product and are in the market for a new television.

3. Mention how the store's competitors and the internet are making it easier to price compare.

4. Ask if there are any specials on your particular model (are they throwing in a Blu-ray player? Free DVDs? Sales price that doesn't go into effect until the weekend?).

5. Let the salesperson know that the currently advertised price is more than your are willing to spend and ask him/her if there is anything they can do to bring the price down. If they ask what you price you would like to see then give them a number below your predefined maximum spending limit. It's up to you to gauge how much lower, and you will find that after time this number gets to be farther and farther from your max limit the comfortable you get at negotiating.

6. Make the deal at this price, or continue to haggle until you've crossed your limit and are ready to leave.

7. If you don't make the deal, you have four options:

  You can go back tomorrow and try with a different sales person

  You can head to a different store and try again.

  You can raise your max spending limit (not recommended).

  You can decide that you really didn't need the product anyway.

Better to suggest: "I really like your product here, but to be frank, I've got to watch my money right now. Is there a way you can reduce this price 20% and still do business with me?"

The catch is that some people will most certainly say no. You either deal with them and reward their stubbornness or walk to someone that is willing to talk. I think that's more of the key than an opening line.

Facebook is possibly in the same group (I'm still not convinced).

You should not model your practices after outliers, since by definition it is most likely that their experiences will be nothing like yours.

http://www.penzba.co.uk/StartupAdvice.html