I don't think is about price, negotiating, or anything close to that.
It is about feeling good about the deal that you got.
Even Amazon plays that. There are thousands of items with an inflated price, I'm talking about $59.95 items at $19.95, so they show a 73%+ discount (imaginative prices) when they were $19.95 from the get go.
It just feels good to buy a good deal.
As a vendor I experience this EVERY DAY:
Dealers: How much is the website?
Me: $800
Dealer: What about $700? (the $100 discount is not based on any scientific of fact that the price should be $700, the whole discount request is just that; I must get a discount).
So as a vendor I've always liked straight talk. This is what I charge-->this is what you get. I don't overprice things, I don't quote things based on who you are, my prices are the same for everyone unless you own 25+ stores so I can multiply things that we do for you. Here is the reality, the $100 make no-difference-to-you, but times 1,000 websites it either allow me to have a 10 people dev team or a 15 people dev team, a 10 people graphics team or a 15 people graphics team. So the difference is I grind every day with the dealers and prioritize things or I provide support on the spot. Dealers screw themselves out of headache-free support for $100/month. Every-day.
So what to do...
Dealers: How much is the website?
Me: $1500
Dealer: What about $800? (still no clue why it needs to be $800)
Me: Yes, we can do that for you because you seem like I great guy (I don't know you actually and I don't want to know you. I just want you to have the best performing website so you sell more cars and make friends around where you live).
Dealer: OK we have a deal (feels good because he got a deal)
We complain about customers buying cars and you do the same when buying anything else. Negotiate for negotiate without reason or understanding of what you get. I hate dealers that negotiate $100 and quickly sign the contract, bad long term business. I love dealers that ask every question, "what do I get for my $800?", and that they look forward with working with your team.
