ASA and PSIA Instructor
Join Date: Apr 2000
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"I refuse to buy anything of that cost for only a <5% discount." is a odd statement.
Items can be priced under a wide variety of assumptions, particularly affected by the eagerness of the seller to get a sale. Consider a boat with a well reasearched market value of $150,000. One seller who's in no hurry, may ask $175,000 while a second seller who wants a quck sale, and hopes for miniomal hassle in the sal, may ask $150,000 firm.
So do you come out ahead if the first seller discount's the asking price 10% or paying full price for the second?
Asking prices are of no importance in making a purchase decison - you the buyer must establish the VALUE of the boat. Asking price and VALUE may or may not have a good correlation...
When the price gets to the VALUE you can make a good deal, a discount has nothing to do with a good deal, probably the bigger the discount, the more likely the buyer had more to give and walking away with extra money in his pocket.
Permium products like Mercedes (hmm..make that Infiniti..) and Tartan usually don't have the pricing flexibility the Chevys and Hunters will have, becuase the sellers know they are have a premium product and can expect buyers to pay a premium, and they expect to deal with buyers who understand VALUE.