Every additional dollar you ask for is 50 cents in your pocket!

So simple, yet so meaningful. Let’s break this down. There are two sides to this sentence: an ask side and a get side.

“Every additional dollar you ask for is 50 cents in your pocket!”. A friend told me this was one of her favorite quotes related to negotiation. It was the first time I’d heard it, and I had to read it twice before it really hit me. So simple, yet so meaningful. Let’s break this down.  There are two sides to this sentence: an ask side and a get side.

Let’s break this down.  There are two sides to this sentence; an ask side and a get side Whatever you ask, it psychologically anchors other people.  There are techniques to reinforce the anchor, such as using precise numbers, but we’ll leave that for another post.

During my negotiation training, I would ask the participants to role play. 1 buyer and 1 seller.  The best predictor of the negotiation’s outcome was the first offer.  The more aggressive the first offer was, the better deal the buyer got.  You can make the explanation as complex as you want, but this is how it goes.

My simple way to look at it is that people are like sheep, we love to follow.  Therefore if a salesperson says a TV costs $2,000, chances are that you will ask to pay $1,900. What I am recommending is to ask for much more. You shouldn’t be embarrassed or scared to do it. Just know that the more you ask for the more you will get. And the worst case scenario is to hear “no”.

How to pay less on Airbnb?

I saved 50% on my family vacations in Hawaii. You can do too. This is how.

Let’s face it, Airbnb is not as cheap as it was used to be.  When I first booked an Airbnb it always felt like a great deal. Two bedrooms apartment in the West Village for a fraction of the price of a budget hotel.  But this is no longer the case.

So how to pay less on Airbnb? It is a simple, just ask the host to pay less.  I can imagine the look on your face. Claude, I am busy, stop playing games, I’ve got vacations to book on Airbnb.  Bear with me and let’s think about this:

Why would a host accept to lower their price? There are 3 reasons:

  • Most hosts on Airbnb are individuals looking to earn cash on the side.  Chances are they do not know how much their house is really worth.
  • You have a lot of options available.  The host knows that if they refuse your offer, you are almost guaranteed to find another place, however, the host may not.
  • Their Least Acceptable Agreement (LAA) is $0.  Meaning that even is you pay the host $1 he is making money.  This is an extreme example. But think about a house with a price tag of $6000 per night, if you pay $2000 it is better than $0.

How to ask?

  • A house is typically people’s most valuable possession. Make them feel like you will look after it like your own.  Contact the host and share about yourself.  Read the bio of the host. Get to know them, understand what make them tick.  Highlight what you have in common or anything else they may appreciate.
  • Your Airbnb profile needs to inspire trust.  Add a photo of you and your family, your mom, your dog.  Anything that tells your best story.  Describe yourself kindly, share something personal, give enough details to build rapport but not too much to creep people out.
  • Make a moonshot offer, to many hosts.  I am talking 50% off to every listing meeting your criteria.  Remember, at 50% discount many more listings are within your budget. Consider asking for even more when the situation is right, such as a high-end listing you are ready to book last minute.

This is how I saved $3000 on our next vacations in Hawaii.