Hello Indie Hackers ! Are you negotiating products, ads, events, memberships, and more when you buy them ?
If yes, would you like to discuss it with me ? I'm interviewing some founders to learn about it.
If no, would you like to explain why ?
Thanks,
Adrien
If someone is the solicitor (for example asking someone else to use their service), it makes sense to provide an inducement for them to try it so as to stimulate consumption (idea being that once they try it and realize its value, they will buy at full price next time, or stimulate others to do so. Kind of like influencers getting a product for free to try, with the idea being that they will drive organic sales).
If someone is the buyer asking for a discount - they are acknowledging that the product provides value to them, their willingness to pay is just lower then the sellers asking. In this case the seller should run a basic analysis on his revenue stream according to different willingness to pay for a product, and if they can implement some sort of price discrimination which can segregate different customers according to their willingness to pay (WTP) (think coupons and discount codes. Example: your product costs $20, one customers WTP is $100 and they wont bother searching for coupon codes etc, another is $50 they are willing to spend time to look for coupons and join programs to get a better deal, as they wont buy at $100. It makes sense to satisfy both customers, but if one wants to maximize their revenue, each customer should be optimized to pay the maximum value they derive from the product $100 for customer A and $50 from customer B).
There is a difficulty in gathering reliable data on peoples WTP, so in a sense, when someone is asking for a discount, they are providing the creator with valuable feedback on pricing structure, which can be used to drive larger picture decision regarding pricing strategy and price discrimination. So it really does make sense to have some sort of tool to identify what peoples maximum willingness to pay is (clearly with no ambiguity - not just say so, but demonstrate they are willing to pay that price), even if the creator is not willing to sell at that price, because it really is a clear indicator of the value that consumers are deriving from that product (which can be sometimes surprising and incredibly hard to predict).
What is a bad strategy is to have an ad-hoc pricing strategy without a method in place. Its just not scalable and alienates users if they think they are not getting the best deal (People don't like being charged differently for the same thing - the fact that coupons work is an outlier, but socially acceptable because they are avialable to everyone, it just discriminates based on a persons free time to manage them - people with a higher WTP can spend their time more productively doing something else rather than sorting coupons). The best strategies often have consistent and straight forward pricing that maximizes revenue with limited/no price discrimination on fungible products, and then make derivative products of lower quality as a form of price discrimination (Think normal tesla vs. Performance Tesla - the difference is largely in software upgrades rather then the hardware costs, which is a form of price discrimination that is thankfully socially acceptable and helps the company maximize revenue and fund future development.)
Never.
Largely because I hate people trying to bargain with me. In my experience, people who bargain are usually more difficult to deal with than people who just purchase at the asking price and can clearly see the value.
If someone is charging $X then I appreciate that is equal to the value being offered, if it's not for me I won't buy it, but entering into a negotiation feels like I'm devaluing the offering.