Know when to talk Money and how not to
Often the first one to name a price loses. If you say 50K and he might have been willing to take 25K, he’ll still respond and say 75 to see if he can get it. The seller needs to feel confident that he or she has gotten all that they can get for it from the buyer. (That’s why it takes time for everyone to get comfortable with the deal.)
Sometimes it’s good to start the bar and the discussion low. But you also need to make sure you sound serious or you could get the door slammed in your face. So make sure your offer is enough to make a difference to them and show you’re serious or you could get the door slammed in your face. So make sure your offer is enough to make a difference to them.
A rule of thumb I often use is that if it’s under 5 to 10 thousand, even for a personal number or a very small business without a lot of use, its not serious because it won’t make enough difference to be worthwhile. The more they use and advertise the number, the bigger they are, and the more generic and obvious the value of the number is, the more you need to offer to even be serious. One good way to feel them out on the pricing is to talk in terms of other assets. If you’re the buyer talk in terms of things they could do with the number. Say something like, “It might not be enough to buy a brand new sports car or pay for your kids college, but I am pretty sure we can offer you enough for a really nice used car or a semester or two of college.” If you’re selling the number talk about it in terms of the other business assets they need to run their business. “Ask yourself which is more important to the long term success of your business, a new truck/piece of equipment or a brand name number?” Always compare it to a larger item that would typically need to be financed. And if they say a new truck, then their business just isn’t big enough to justify needing a brand name number. But these analogies all allow you to start a dialogue without tying yourself down to a specific number plus they have the added benefit that they get the other party to think of it in terms a business assets or what they could do with the money.
The larger the organization you’re dealing with the less cash is probably going to matter, because in a large company, the cash doesn’t go into the pocket of the person you’re talking to. So it’s especially important to try to find out what really would benefit the person you’re dealing with. For a large company, I always look for a better more helpful number for them. That way they can “trade up” to a number that would more beneficial for them and you didn’t have to put a price on the old number. (I’ve gotten several excellent numbers for clients doing multi party trades or finding someone their dream number.) If you find one or even a few good numbers, you don’t even have to activate them, just reserve them. If they like one, then you can activate it and give it to them right away before even finalizing things. It shows your sincerity and makes them feel more obligated to help you without much real expense.
If you’re talking to a smaller business and dealing with the owner, keep in mind that cash is very persuasive and meeting in person can make it much easier to ask for his help and get him to agree. Also think about your timing. When does he need money the most? When does he need to invest in new equipment or maybe it’s just before Christmas? Who couldn’t use some extra money at the holidays?
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