…I Learned From a Cab Driver
By: Tina Merritt
When I first started investing in and selling real estate many years ago, I knew I needed to become a student of negotiating. I read every book I could find on the subject, practiced my skills at flea markets, and memorized scripts to exhibit the confidence needed to successfully negotiate. To be perfectly honest, I thought I was a darn good negotiator.
In 2008, we moved to India for a few months while my husband took a temporary assignment with his company. It was here that I met Muktar, a local cab driver. Not only was Muktar my driver, he was also a chaperone – taking my son and I to many different sights, events, and of course, shopping excursions. I learned quickly that the Indian population thought little of my negotiating skills and they were quick to take advantage of my American style of bargaining. After one purchase, Muktar asked how much I paid for the item. When I told him, he replied, “Ma’am, you pay too much. I negotiate next time for you.” Thus began my real world education in negotiating.
Over the next few months, Muktar and I used our own little system. I would shop for what I wanted while Muktar waited in the background and then he would handle negotiating. More often than not, we ended up walking away because Muktar said I wasn’t getting a good deal. I was living in a land where everything is negotiated – services, goods, necessities. I had to bargain for medications, tickets to the zoo, tokens for my son to play in the arcade…even beer! No price is final until the cash changes hands and every rupee (the currency of India) is held in high regard. To be perfectly honest, it was exhausting. I yearned to be back in my beloved America where we state our asking price, adhere to price tags, have “give-one, take-one” cups of pennies next to cash registers, and accept stores incorrectly scanning prices and overcharging the consumer as a fact of life.
According to my husband, Muktar is the only person in the world who has ever been able to get me to walk away from a pair of shoes I wanted and therefore, is a wise man. On a more serious note, this is what I learned from my excursions with him:
- Unless you are thirsty and need water, malnourished and need food, homeless and need shelter, or naked and need clothing, there is absolutely nothing you can’t walk away from.
- Money today is most often more valuable than money tomorrow from a seller’s perspective. Being prepared to pay immediately is a valuable tool.
- Cash is king and always will be. “Show me the money,” does not mean “show me your mortgage pre-approval letter.” MasterCard is not cash.
- As Americans, we are too concerned with being polite and “making nice” when it comes to negotiating. We obsess over the person we are doing business with rather than the transaction itself.
- To say, “I am insulted by this offer” is petty and exhibits weakness. A true negotiator treats every offer as if it will result in a successful transaction.
- State what you want and how much you want to pay for it. Asking is leaving a door wide-open for a counter.
- If you are going to negotiate and/or conduct business with a person or persons of another culture, take the time to understand and respect how they negotiate. Do not have the attitude that they will negotiate as Americans do…because they won’t.
In my next few posts, I will dig deeper into the topic of negotiating. I’ll discuss negotiating specifically with regards to residential real estate, mortgages and closing expenses. We will also touch on bartering and using relationships for negotiating. In addition, I’ll tell you what my 4 year old son taught me about negotiating in New York City…stay tuned!
Tina Merritt specializes in working with real estate investors. Licensed since 1998 in Virginia and North Carolina, Tina presently manages both the New River Valley and Hampton Roads’ offices. Most importantly, Tina is “Mom” to Goliath, the English Bulldog who can usually be found napping in the window of the Nest Realty office in Blacksburg. Contact Tina to learn more about negotiating for your dream home.