November 3, 2026

Business by the Book

Proverbs 20:14 It is naught, it is naught, saith the buyer: but when he is gone his way, then he boasteth.

There are several popular shows on television that show individuals haggling over the sales price of various items. Each and every situation seems to be the same. Joe Public walks in off the street and wants to sell a certain object for a certain amount. The person working behind the display case evaluates the product and sometimes has an expert come in and give an opinion of the value of the item. This is a wonderful opportunity to see real life negotiations in action. Much can be learned, sadly most of what is learned is how poor the negotiating skills are of most Americans.

One such show deals with a group of investors possibly investing in a startup company. The inventors are hugely outgunned. The investors know which questions to ask, and they know how to devalue the product or company in the inventors mind. They throw big numbers around, and totally confuse most of the inventors. How sad it is to see so many people fail in the area of negotiations because they do not understand the basic tactic of negotiation that is highlighted in today’s verse.

Those who desire to reduce the cost of a product reveal all the negatives about it, but withhold the positives. However, as soon as a deal is made they are glad to find such a bargain. This is the way of business; instead of “buyers beware” most often it should be “sellers beware.” 

Let’s say you have an item that you know is valued at $1,000. The person evaluating the product begins to highlight all the problems with said item. As they go down their list of negatives you are reducing the price in your head. This is human nature and it is what the buyer wants to happen. Let’s also say they offer you $500. They are asking you to make a $500 concession. You know the item is worth more than that so you may drop the price to $750 to “meet them half way” (which by the way is a horrible tactic – why meet them half way – what have they done for you). Anyway, you counter offer with a $250 concession, they counter by offering to pay $550. They have made a $50 concession to your $250 concession. But usually the seller drops their price more, simply to “not lose the sale.”  Why? If they don’t buy it someone else will.

In negotiations consider these five simple tips.

• Do not accept their valuation of your item, do your own research beforehand and know what it is worth.

• Do not make the first concession.

• Do not make a greater concession than they do.

• Be willing to walk away.

• Negotiation should be fun, so don’t negotiate with an angry or easily offended person. These are emotional tactics meant to take advantage.

Dr. William Howe