Funny money

Disciplines > Negotiation > Negotiation tactics > Funny money

Description | Example | Discussion | See also

Description

When you are selling, offer financial arrangements that makes it appear that the price is lower than it actually is. Spread the cost over time. Use complex investment options. Hide future costs.

When you are buying, offer to pay by different means, for example by paying in kind, offering goods and services rather than cash.

Play with risk and valuations of it. Deal in future value. Consider depreciation.

Talk about savings and opportunity. Discuss tax avoidance. Hint at the effects of inflation.

Example

Well, we can double down the future reversal and save you at least 29% for you next 12 months of payment.

Hmm. Well if inflation is at 5% and base rate increase by two points per month, then we'll be able to double your income and avoid the setup charge for the third year.

Well, sir, I know you have said you can't afford it, but if I can show you a way that you could manage the payments, would you like to drive away in this wonderful vehicle today?

Discussion

Most people become quickly lost when financial arrangements start be discussed. All they want to know is what they have to pay, in particularly in the short term. It is thus easy to bamboozle them with relatively simple (or even fake) financial wording.

Various financial services, from investments to pensions have surprised investors by losing their money, when they have been told that they 'couldn't lose'.