ALWAYS be the first person to name the price.
If the buyer names the price first and it is lower than what you want, it will be a real struggle to negotiate up
from there. Price anchoring is a psychological term that is a very strong force when it comes to negotiating
price (same with your salary). If you anchor the price with your price first, then your price serves as
the starting point (i.e., the anchor) for negotiation. It is much better to start with a price you
are comfortable with then risk the buyer sending you a lowball offer. Remember, buyers want the lowest price,
sellers the highest price, so name your price first and aim high, real high and negotiate down from
there.
Name a price that is higher than what you are willing to sell for
.
Here’s why. Prices can only be negotiated lower. Go back to the “anchoring” explained above.
Let’s say you are willing to sell your blog for $500,000 and you name that as your price. You may find the
buyer start negotiating the price and remember our rule, prices are only negotiated downward, so you might only sell
your blog for $450,000. But if you name your price at say $600,000 and the seller negotiates
downward from there, you are more likely to end up with the original price you wanted of $500,000. Do this
within reason, but set a “stretch goal” and stretch your starting price above what you are willing to
accept.
Price based on how the buyer values your blog, not how you value it.
Let me explain. FiGuide had a certain monetary value based on a discounted cash flow analysis that would yield
Value A. But the buyer was getting a lot more from FiGuide than just the value of the discounted cash flow.
FiGuide was a premium marketing platform for this organization that allowed them build stronger
relationships with financial advisors as well as promote their own brand through our platform in addition to getting
advertising revenue. They valued FiGuide at Value A plus the value from the extra marketing and relationships
it came with.