Question

You are trying to sell your audio system (an amplifier and speakers) to raise money for an upcoming trip overseas. The system works great, and an audiophile friend tells you that if he were in the market for this kind of equipment (which he isn’t), he’d give you $500 for it. A few days later the first potential buyer comes to see the system. The buyer looks it over and asks a few questions about it. You assure the buyer that the system works well. When asked how much, you tell the buyer that you have already had an offer for $500. The buyer purchases the system for $550. Justify and explain your decision to lie about having the second offer, and what were the consequences of your decision to lie to the buyer

Answer 1

Solution:

First of all, when somebody is attempting to move sound framework, at that point he should realize the present market cost of the sound framework (with an intensifier and speakers) and furthermore its exchanging esteem. Just running with a companion's statement, who isn't even in this market is inadmissible. Scarcely any things that a vendor should remember while moving is -

Continuously complete an intensive research of the item you will move. You can't reclaim the item once you realize that it tends to be sold at a more expensive rate

Try not to run with somebody's pledge. You never know, they can delude you.

Continuously quote more than the market value first, and after that diminish it to the market cost. Upon transaction you can decrease it further. Citing a low value at first will get you even less cost.

Here, the vendor needed to move his sound framework which was working totally fine. He didn't inquire about available cost of the sound framework.

Furthermore, his companion who was not in any case mindful of the exchanging cost of such hardware has proposed that he would pay $500 for such gear, which could either be not exactly the market cost or more than the market cost. In the event that is not exactly the value that is sold in the market, dealer is at misfortune. On the off chance that the cost is more than the market value, he is at gain.

As I would see it, dealer's choice to lie about the second offer is right. He is really right. In spite of the fact that his companion isn't prepared to take the hardware, he was in a roundabout way demonstrating that he would offer $500 to such sound framework.

Which is absolutely his offer. Presently the vendor needed sound framework to be sold at a more expensive rate than what his companion brings to the table. Subsequently, his lie on the second offer won't influence him much

The choice to lie about the second offer is to get a vastly improved cost for the sound framework. This is right, on the grounds that a vendor can settle his very own cost except if requested, and except if the purchaser can purchase.

For this situation, it is right to move at a little more expensive rate ($550) and lying about the second offer, on the grounds that, eventually a deal ought to be in a win-win circumstance. What's more, in this situation, if the purchaser would have discovered paying lower cost, and on the off chance that the merchant is hesitant to decrease the value, that could be a win-lose circumstance. In any case, since both are content with what they are getting then it ought not make any difference much.

The outcome of this choice could be that, if the sound framework cost in the market is lower than what he brought, at that point he could document an argument against the merchant, and if the cost of the sound framework in the market is more than what he paid for, at that point he would savor his choice to purchase the sound framework at a superior cost than the market.