- Never Buy or Sell out of Desperation!
I wanted to basically just start a topic on my point of view in regards to scrapping. Because everyone is different and they utilize scrap $ differently this should be taken with a grain of salt for everyone reading it. It is none of my business as to how you conduct your business.. this is just my own point of view.
But in my own experiences it is best to never buy or sell out of desperation. This can be scrap or any item you have to sell.
When you sell from a stance of being desperate for the $.. you lose an important bargaining tool. It goes just the same as when you are buying.
I have walked away from countless "deals" because the person refused to sell it at what I needed to be able to pay for the item or "lot" to make it worth my time and profit. I have said this before in other posts but as an example- say a guy is desperate himself for Christmas $. He HAS to sell that car- and he wants say $400 for it. I do my quick math and realize that I am going to do A LOT of work to get my $400 back and in the end the measly profit is not worth the amount of effort I will have to exert in order to get my money back and some crumbs for my effort.
Even though HE is desperate, I have to be strong and REFUSE to be desperate with him. This gives me the ability to walk away and as I've said "I can just sit at home and count my $400- I have already worked for it once.. IT MUST be worth my while to work for it again (i.e. garnish far more profit off of it)"
Case in point. Had a guy call me about 2 months ago asking if I wanted to buy a car. He was so sure I was going to buy it he already signed the title for it. When I arrived I found the car is no where near worth the $500 he wanted. I told him that as well- no way for me to pay $500 for the car. He was almost shocked.. couldn't believe it.. I was supposed to be his "financial savior" that day and it turned out I was not! I offered $300 for the car as it ran and drove.. and let my offer sit! About a week ago I get a call "You still want that car for $300?" And indeed I did.
I ran a risk of losing the car.. but to me it was not a loss, I slept fine that night and for the months ahead because I knew I couldn't make much money off the amount he wanted. At my offer I knew I had wiggle room and could.. and it worked out.
This is just my .02 cents. As I said, be smart in your deals, have the ability to walk away, know that if you can't make profit off of what the deal entails- there will be another down the road! Have confidence in yourself, know that what you are offering is correct for YOU.. and don't lose your leverage by being as desperate as the guy trying to sell you!
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