The simple psychological trick to exploit when bargaining 

This channel is a hidden gem

What I learned from this video was the concept of making precise offers. I always thought that the point of pricing something at $3.99 was simply to fool people who don't look closely at numbers (my mom would look at that item and say "oh its only 3 dollars!") What I learned from this video is that it also makes the offer more precise and subconsciously causes you to want to bargain on a much smaller scale. Lately I have been constantly going to job interviews to try and get a better paying job. I'll have to try this technique. Instead of asking for $13/hour I'll ask for $12.95. I can see how this would lead to a counteroffer like $12.50/hr when I may have otherwise been counter offered a flat $12/hr. Thank you for the informative video!

In regards to the shoes and the $150...I had a friend's father no matter if something was 50% off say $100 he would look at at it as he spent $50 instead of saving $50. You didn't save anything, you spent and that is the bottom line

I've always, in my mind, ignored the weird prices. 3.99? FOUR bucks. 99cent? A DOLLAR. I have this so ingrained that I've had people "correct" me, if we're discussing the price on something. eg. "What do you mean four dollars?.. It costs 3.99..." I kinda thought the point of pricing things like that was to trick people into thinking they were spending less money than they actually are. Like, 29.99 vs 30$ ... 30 dollars sounds like quite a bit more money than some amount that resides somewhere within the twenties, right?

I use these tricks in reverse to negotiate salary as an employee, it goes like this: 1. At my last job I made W for a long time 2. Then I had a raise to X 3. My last salary was Y 4. Anything above Y is good 5. My goal is Z that would be great Be prepared to (at least pretend to) walk away for anything below Y. If offered exactly Y, ask questions about other fees like mandated insurance and other perks like more holidays. Ask a bit more than Y if they don't budge. Be realist, enquire how much of a gap there would be compared to your would be colleagues. Hope it helps someone.

And then i bought 50 copies of Bad Rats

Thought this was going to be a shit clickbait video but was actually super concise and informative

bite size behavioural economics

This is how it usually goes with me: - Am I gonna pay $150 for shoes? Nope. End of story.

The limit of 12 cans per customer is an example of artificial scarcity more so than anchoring. A better example of anchoring is suggested donations.

I think that last stock photo has probably never been used in any other context

The keyboard solo toward the end of the background music is fucking killer! Props to the under-appreciated producer.

But wouldn't this trick benefit business people more than consumers most of the time?

It's amazing how some people need this kind of information.

This was surprinsingly VERY informative. Thanks! You're the real MVP

Anchor, offer first, be precise - best tip of the century! Well done guys

Loving this channel, well formatted and informative. Keep them coming man!

Sadly you didn't explain the 29.95 properly. It's because it's a much bigger cognitive load to think about what round number this fractional number is close to, and people's "system 1" thinking takes a shortcut to what you hear ("TWENTY-NINE" in 29.95) and it FEELS like they are getting a WHOLE DOLLAR less than the completely different number "THIRTY" when in reality it's just FIVE CENTS less. Once I realised this marketing tactic, I always force myself to do "system 2" thinking and round the price up. There has been several instances where I talked to a sales person like this (to constantly remind myself AND others of this trick): "So it's thirty dollars huh", "sir, only twenty-nine ninety-five great offer today" (me louder) "hmm I'm not sure if it's worth THIRTY dollars" "sir it was thirty-four ninety-five just last week and you're getting an amazing deal today at twenty-nine ninety-five" "hmmm thirty dollars hmmmmm"...

Great channel, love the short videos and practical, easy to understand information. Subbed

like a tv is 2000 dollars. but its marked down to 1200. If you buy it, you didnt save 800 dollars. You spent 1200.

I do this for a living and when selling secondhand merchandise it never hurts to ask the buyer to "make an offer". Being a seller you can always have a minimum in mind. Simply say no if they don't reach it and counter offer above your minimum. If they offer more than the minimum either haggle the price up or accept. This video is geared more towards buyers who have a general understanding of the object in question.

Wonderful video, as expected :)

How come i just found your channel? the soup example blew my mind away! Awesome work, subbed!

Great job man! Short and full or information.

I'm really glad to see that for once a youtuber makes claims and backs it up with sources. Thank you very much and your channel is very interesting.

Excellent video! Well presented .. thanks!

I feel like the precise price is subconsciously linking the thought of value which is usually handled with little scales instead of just thinking the "smaller scale"

This channel just anchored me. I subbed.

just discovered this channel, and simple fell in love with it x) why did i discover it just now

This makes sense. When bargaining for a lower deal (like buying a new car), you should probably adjust the anchor to about half of what you think the car's worth.

First time I've ever heard of it being an advantage to be the first to throw out a number. All other books and articles will say let them say the number first. after all, what if the number is lower than you thought (as buyer), or even better, you can bracket the negotiations. bracket: if they say $75 and you can pay $50, say $25. you'll end up close to $50 and they'll feel like they did great making you "pay more"

This channel is gonna hit the millions one day no doubt Keep it up guys!

*_Thanks, a very insightful video! :)_*

This is even more significant in court. The party that suggests a certain sentence first has an advantage. In many countries that's the prosecuter

Excellent video about something I absolutely suck at.

Having been raised for somewhat of my life in India. Bargaining is ingrained in my mind. Like if you've learned to bargain in a foreign country.

excellent video, can't wait for the next one :3

i feel like such a smartass for always having done this

I ll use that in my future price negotiations with my customers. Many thanks.

Thank you!

this is so relatable to my grades, gaining and losing marks . I would rather I get lower mark and gaining more marks than getting a high mark then losing marks

some people hate lawyers i dont trust marketers, they make you want things you never wouldve wanted...

On black Friday a lot of places say their products are on sale 50% off, but Jack the price up so that you're actually only saving +/-15%

Does anyone know the name of the classic oldtimer car in the beginning of the video.

Very helpful, thanks.

That first example sounds kinda like that thing infomercials always love to do when saying the price, where they say something like "So how much does this fantastic new thing you didn't know that you didn't need in your life cost? $1299? Nope! $999? Still a lot of money! No, this thing costs a fantastic 599 US dollars! That's right, just five hundred and ninety nine bucks! Just a fraction of the price of other similar products! Call 1-800-BUYCRAP and order your very own [product name] TODAY!".

Fantastic video

When making the first offer, if you're trying to buy the item is it better to offer lower first or higher first

None of these marketing ploys have ever worked on me, it's just so obvious what they're trying to do. What really pisses me off, though, is that when a company decided to be forthright with their prices, business plummeted and they never fully recovered after that. People seem to be addicted to sales, even on fictitious comparatives, like those 90% off sales that only just put the true price anywhere close to a reasonable amount.

I will keep this in mind for my first raise negotiation

Where was this channel when i was doing my business degree damnit...business students got it easy now

very helpfull, makes a lot of sense. Make the first offer, always!

great video. subscribed!!!

Thank you kind stranger

I never look at what the promotion says. just at the final price.

The thing about offering first is that you might accidentally offer a price higher than what the person might have offered had they offered first. What if im thinking of offering 5000 but the person would have started the offer at 4500. I immediately lose in this situation and we bargain to 5000.

great video.

Really enjoying the videos.. worth subscribing

Thanks, good info

As someone who worked way to long in retail.......I've already adjusted my mind to prices being virtually meaningless. Especially "sale" prices. I never believe anything is truly "on sale". In the case of supermarket goods it's much better to simply track the products you like to buy and you will quickly learn the store's lowest price that they will ever sell them for. Hell...next time your in the store, go to the customer service desk and get them to look up the product. Ask them if they can tell you the lowest sale price from a historical perspective. "what's the cheapest this thing sells for". Then just wait for the times they sell it at that price and stock up. It will usually be every few months. Most of the service people will probably just tell you the price. They don't really care. As for clothing, tech items etc.....It's more important to think in terms of life cycle. The older a product gets the cheaper it gets. You're not getting the new styles for any kind of deal. Decide how new you want your stuff to be and then pay accordingly.

They haven't seen Les Gold from American Jewellery and Loan (Hardcore Pawn). I think he's a great negotiator. He never offers a price first. He asks "what do you want for it?" The customer says e.g $200 He then says "what would you really take for it?" They say I gotta have $150. He then says "why/where did you come up with that price?" He then asks "what's the least you'll take for it?" They say I need $100. He hasn't mentioned a figure yet the customer often drops their price 2-3 times by themselves. He then offers whatever he likes, usually less then half the final figure offered by the customer. "I'll give you $40". They counter with $80. He settles on $45-50. Brilliant.

If labels told the truth: "Marked up, marked down"

Well the first one is that prices is a big factor in how you perceive the value of a product. The higher price communicates a high quality product, wheras the lower price communicates the perceived negative value. Hence you perceive the value you get by the high price, but the value you lose (spending money) by the low price.

THANKS!

my grandas friend owned a clothes shop and he coulnt sell trousers for £5 at the time, so someone told him to bump the price up to £20 and it sold within a day because people perceived it as being more desirable clothing

what's the music in the background? I really like it

great video

Here's one for you, there are three golden words that you can use to help you get a bargain when you approach someone with something for sale. I don't profess to know exactly why they work but boy do they!. I have used them to knock off 50% off the price I paid for several things that were already a bargain. Decide what you want to pay (say $100.00) and then just ask 'Would you take $100.00?' For some reason people just feel compelled to say yes!. Good luck, hope you are as successful with it as I am!!!!.

there is a local music shop near me that uses that trick on EVERYTHING. They show a really high price that is crossed out, and then shows the "sale" price, but that sale price is still even higher than when you find that item online, to make it seem like a good deal. very annoying

That technique closely ressemble a very common con artist trick of "Good/Bad ; Bad/Worse." It's ironically a trick that everybody now and have faced at least once in their life. Here's an example : imagine that your parents (either of them or both) wish you to meet a family member (like an uncle) that they like but you don't ; they want you to meet that person, you resolutely do not want to meet that person. Now to bypass your refusal they say something along the lines of "if you refuse to meet that uncle, we'll have no other choice than to go see both your aunts." The thing is *you hate your aunts even more than your uncle* - worst still or/and better yet, your parents too hate your aunts _and had absolutely no plan to see your aunts since the beginning_ . So why did they propose the alternative of seeing the aunts ? Because they knew that you would've never agreed for it and 100% would prefer to see your uncle over them. The essence of the trick is therefore simple : you have a situation where, in the mind of the person you wish to trick, you instigate the idea that a bad choice is better than a worse choice - when the bad choice was your aim all along. Because out of two detrimental choices, you'll always instinctively try to get the less detrimental one as nobody, in their right mind, would ever consider taking the worst choice.

thanks for this video. does the same tactic apply when trying to negotiate salaries?

It always makes me suspicious when there is a big price jump like 300 down to 150.

thanks for this

Seems a heck of a lot more useful for the person making a sale, rather than a person seeking to buy something. I mean, you can't approach a car salesman on a lot and make the first offer. They already have a price in mind. Neither can you realistically say "my max budget is $397/month." Still, got my subscription. Expecting good stuff from you.

Thanks. I'm going apply this Warframe. I need that fucking plat

Thought I'd learn something today but nah, I already knew all this, the really hard bargain is to make someone drive down the price past the point of offense, now that takes skill and courage

Well known, still great.

Target will put clearance stickers on things and Mark them down by $0.30. Currently they still put the original price on the tag, but I'm waiting for that to stop since knowing that they only marked something down by such a miniscule amount means that most people will put it back.

I was buying an expansion pack for my game that was normally $40 but it was marked down to the price of a game pack($20). It was higher quality than the game pack, but I thought that the game pack should be $20. Is this in violation of the soup rule?

Another great video :)

I feel like this tactic is completely detectable, at least to me. There always seems to be some "sale" going on in every supermarket. What's especially suspicious is when they mark things down by 10 cents, that's how you know they're trying to get you onto a product. Of course, with bigger products like a game system, this trick is easier to fall for because you can "mark down" the game system by 100$ and it feels like you're getting an incredible deal.

Anchoring got me earlier when I paid $71 dollars for a $129 pair of shoes. Felt like a bargain.

I've been dragged into this before. Buying a pair of $120 boat shoes marked down 40%, which knocks off "oh wow, these are only $72 now, gotta grab these, wow!" Just to look them up online a while later and see that most other stores regularly sold these at around $65, as a normal base price. I also read about how oftentimes a retailer will display two brands of essentially the same product, but price one wayyy higher than the other, knowing full well that the over-priced one won't well. But the over-priced one makes the reasonably priced one beside it look more palatable. Sleazy games that they like to play. I miss feudal Japan, where merchants were the bottom class . . .

That doesn't work on Rick from the pawnshop show. Customers almost always ask for a price and then Rick says his own price which is ridiculously different.

No wonder steam is filthy rich, lol

This is pretty fair and definitely worth watching however in the sales and retail world of today many won't budge...or budge enough off their price because they know that they have enough customers who will pay full retail and they don't need to give you a discount.

i got something fot 20 euro that was like 50 at first since i was in france and dont speak the language and the seller didnt speak english so he said (after haggling) 30 and we acted like we thought he said 20 so after a few attempts of him saying 30 he just gave up and sold it for 20 :-P

I believe marketing works or they wouldn't do it. It does not work on the cynical. I'm naturally a cynic, which is sometimes a bad trait. However, I have never been exploited or taken advantage of financially. I believe all businesses are corrupt and dishonest. When a deal actually occurs, I'm shocked. Businesses never take a loss or they be around for long. The last deal I made on a new vehicle was 22,500 on a msrp of 33,000. The same dealer was selling used vehicle with 30k miles for more. Did the dealer take a loss, No, he still made money.

The thing about comparing to the first bit of info reminds me of delta compression

Another very effective strategy to use at tag/garage/sales and swap meets: have cash in hand, literally, when making an offer. "I'll go $20" and have the twenty in your hand. Works most every time.

Hi there, great info! Any suggestions of books that dive a little deeper into these topics? Many thanks.

I must be strange because this form of sales not only do not work on me, it annoys me

If I as a customer get a chance to make the first offer, why should I go for a precise offer? Won't selecting an odd number like 29.95 be beneficial for me since the counter offer won't be too off from my first offer?

VERY interesting

So if I want to rent an apartment, listed at 395, do I make an offer of 350 and expect the owner to adjust the price? This exploit seems to only work if I'm the one selling. And since the first offer is already established, how do I make my offer valid if it's not the first?

Kathmandu does this to a comical extent I tell ya. Honestly in NZ, they always have their gear way overpriced and then their regular sales always try to catch you off guard by saying "up to 80% off" and some other bs.

Nice!

Something I find very useful is to downbid your first offer. Most people will offer something, hear the salesperson's offer, and then RAISE their offer to something close to it (compromising). Instead of doing that, LOWER your first offer! So, suppose that you want that $150 pair of shoes. Take this video's advice and offer first, and specifically. Say, $99. The salesperson will counter with something like $120. Now, here's the trick: instead of splitting the different ($110), make your next offer $89! What I've found is that nobody expects this at all; they'll immediately panic, and either accept your second offer immediately for fear it may go even lower, or give their own compromise which will be, surprise surprise, in between YOUR two offers, something like $95. They might quickly realize that they've made a mistake, but by then you'll already be shaking hands to seal the deal.

Thought the video was going to be disappointing at first but then it went into pricing trickery which is very important. Most people in United States fail to notice the 9/10th on the side of the gas price. Ex: $1.85 & 9/10th which pretty much sums it up to $1.86. A trick all gas companies use

what I usually do is not buy right away. for example a 1952 American vintage reissue fender telecaster usually range 1500-2000$. I go to ebay, amazon, musiciansfriend, my local guitar stores and compare prices. I will search and search until I find the one that is the cheapest, then if I can haggle, I will. thats why I got one 52 avri tele for 750$. Hooray for me 😊👍