Declining Value of Services
Written by Kevin on October 3, 2007 – 5:37 pm -This technique will teach you that after a service has been performed the value of that service decreases.
Over a five year period the value of building materials may rise 10, 15 or even 20% or more and that even though we may dispute this increase, we will pay it and blame inflation.
Having visited the doctor and then get faced with a bill of 10 euro more than last time, we would be quite hesitant about the increase, thinking to ourselves, “Why the increase? All she did was give me a prescription for a head cold”. Of course the doctor did a lot more than that but we feel the service didnt justify the money after there was an increase.
What you need to do as a negotiator is to agree your pricing terms up front. This way there will be no more surprises later on.
If you have ever sold your house you will know that Estate agents work on a commission, typically 3 - 9% of the sale value of your house.
It isnt until after the sale has been completed that the Estate agent looks for their fee, only to be told “9000 euro for what? All you did was put it on myhome.ie”
But of course they did a lot more than that. They would have organised contracts, terms and pricing with the buyer. As a seller all we see is who comes to look at the house, not at what work was involved to get them in the door!
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