Use A Bogey

In a crunch? Use a bogey

We recently discussed the “Krunch” tactic, where we negotiate by asking the seller to “do better” on price. The Bogey tactic is in some ways, a variation of the “Krunch.” It goes like this: You are negotiating to buy bathroom tiles, and the seller offers a truckload at $5,000. You say you have only $4,200, which is what your budget allowed and can write a check in that amount right now. The key is that, you, the buyer must make the offer (and the constraints) believable. You are appealing to the seller’s desire to work with you, to help you meet your budget.

What the bogey tactic does is start the search for a better deal. The bogey gives sellers a chance of showing what they know about their products, and what is included beyond the price offered. It may result in a better price or perhaps just a better understanding of what you are getting.

Dr. Chester Karrass says that the bogey should always be considered when purchasing complex products or services. The seller is motivated to help the buyer to resolve the problem, so the negotiation becomes cooperative instead of competitive.

Karrass advises salespeople to be prepared for a buyer’s bogey:

1) Have alternate packages available before entering the negotiation.
2) Make sure you know who makes the final decision and who is actually paying the bills.
3) Stand firm.

Bogeys can be used by both sides of a negotiation.

Salespeople use what is called a seller’s bogey, where they say: “I’d love to close this sale, but we need to resolve a few issues first,” and then proceed to add some terms and conditions such as full payment upfront, minimum order amount, delivery time, etc. In the end, a seller’s bogey, may help increase the size of an order, close a sale, eliminate competition or mine information about what the buyer really wants.

Have you successfully used a bogey tactic?