Don’t Get Fooled by “Funny Money”: Negotiating Beyond the Price Tag
Negotiations aren’t just about price. The “funny money” tactic throws in non-cash bonuses to make a deal seem sweeter. Here’s how to spot it and land a deal that benefits you.
The “Funny Money” Maneuver:
This tactic involves offering extras like extended warranties, future discounts, or other perks instead of lowering the price.The goal is to make a financial concession seem more appealing or offset a cost.
What They’re Doing:
- Creative Compensation: They’ll offer services, support, or future discounts to add perceived value.
- Perception vs. Reality: They’ll emphasize the perceived benefits over the actual cost of these extras.
- Long-Term Play: They might highlight how these perks can provide long-term value.
- Meeting Your Needs (Hopefully): Ideally, they’ll tailor these non-monetary benefits to your specific interests.
- Flexibility for Agreement: They’ll show willingness to explore different forms of value to reach a deal.
Be Wary Of:
- Misrepresentation: The true value of these extras might be inflated, leading to distrust.
- Value Mismatch: What they see as valuable, you might not. Consider if these perks truly benefit you.
Fight the “Funny Money” Fight:
- True Value Check: Research or consult experts to assess the actual value of these non-monetary offers.
- Price it Out: Try to translate these perks into a dollar value. For example, how much would you normally pay for the extra service they’re offering?
- Do You Need It?: Consider if these perks align with your needs. If not, they might not be worth much.
- Transparency Matters: Ask about the actual cost of the “funny money” being offered.
- Focus on Your Needs: Don’t get distracted by fancy extras. Negotiate for what you truly need in the deal.
- Short-Term vs. Long-Term: Consider if the benefits will provide lasting value or just a temporary fix.
- Counter with Real Value: If “funny money” doesn’t suit you, counter with a request for real concessions that have tangible value to you.
- Clear Agreements: If you accept “funny money,” ensure the contract clearly details how and when these benefits will be delivered.
By being strategic, you can ensure that “funny money” doesn’t distract you from a good deal. Focus on transparency and negotiate for what truly benefits you, building a strong and lasting business relationship.
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