Episode 40 of The James Altucher Show features Seth Gold of the reality TV show ‘Hardcore Pawn’. Whilst the show focuses a lot on buying low and selling high, Seth said that 80-90% of customers simply take a loan against thei item and buy it back (with a little bit of interest). In his business, Seth needs pretty phenomenal negotiating skills. He breaks down the main components required for negotiating as follows:
- Know the market value of the item you are negotiating.
- Know what your ‘bottom dollar’ is going to be and know what your ‘top dollar’ is going to be (your maximum bid that will still allow you to make a good profit)
- Know when to walk away.
Seth usually doesn’t give out the first price because the first price always sets a peg that will dictate the rest of the negotiation.