Cash management: Pay as Much Attention When You are Selling as When You are Buying

August 16, 2010

Next door neighbors are good for borrowing things: a lawn mower, tools and a cup of sugar.  If they have teenagers, they are good for babysitting and helping you move heavy objects downstairs (even working for pizza sometimes).  My next door neighbor, however, taught me some lessons that have saved me hundreds of dollars over the years – maybe I shouldn’t have paid his sons in pizza to move my furniture.

Here’s what happened.  I was selling a Toyota Corona (yes it was really a Corona – there was a model about a hundred years ago) and he helped me because at the time (quite a few years ago), I was a pushover.  Well when the buyer quickly tried to bring the price down by $500.  My neighbor made me stand firm.  The negotiations commenced and I came down slightly in the price and the buyer conceded, but still getting a good price for a great car that literally was only driven by a little old lady (my grandmother) so it had very little miles.

My neighbor said later, “You don’t even know this guy, would you really just GIVE him $500?”  I never thought about it that way, I was so concerned with getting rid of the car and the hassle of showing it to people and advertising it (before Craig’s list).  The lesson I learned was two-fold but simple.  First off $500 is $500 and secondly, we want to put as much thought into SELLING something as we do buying something.

When we are going to buy a car or anything substantial, we check out the comps, read consumer reports, and look online for reviews.  We do our homework.  When we are selling something some of us focus on just getting rid of it and getting it out of our hair.  Truly we are then just losing money.

Now, whenever I am selling something I listen to my neighbor like a little voice in my ear.  I think to myself, “Let’s not go down in price too quickly here.  Would I just hand this guy $500?”    So now because of some good advice and some help along the way, I am a savvy seller just as much as I am a savvy buyer.