Today I learned about what I call “The Art of Low Balling”. My definition of a low-ball is an offer to make during a business proposition in which both parties in negotiation intrinsically know that the offer made by the offerrer is way below market value.
A low-ball offer is in my opinion a showing of confidence and cockiness by the offerer and in a sense shows the seller that they mean business and are serious. A low-ball offer is secretly enhanced from a physiology point of view when a third party is introduced into the equation from the offerer side. An example of this is at my day job. We are buying Internet traffic from a specific company and I am telling the company that my boss firmly told me that I could only offer $3 for that traffic. Due to the fact that I introduced the third party this in a sense legitimizes the low-ball offer in the seller’s mind and they are proven to be more inclined to accept or consider this offer.
Whenever you are in these type of negotiations always look for the introduction of the third party, as this is a form of manipulation. Low Ball offers are usually countered by some form of third party being brought into the mix weather its somebody who has instructed you to offer a deal such as a boss or another party that has a similar product for sale that will agree to your offer. Remember if you are in the seller position the way to combat a low ball offer is to stay firm and confident in your beliefs and hold your ground and they will crawl back slowly once they figure out that your not buying into their manipulation.
