This is a conversation I recently had with a NYC taxi driver, for the most part.
Because negotiating is just fun sometimes…
Me: Hey Taxi Driver. How much to go to Jersey City?
Taxi Driver: (thinking about it…) $50.
Me: Awesome, $25 is perfect. Let’s go.
Taxi Driver: What? I said $50. There is a toll and it is out-of-state….(hesitation… as I begin to back away from the taxi)…ok fine, $45.
Me: Ok, $25. Let’s do it. After all, it’s the same distance to Brooklyn and that fare only costs $18 dollars, so you are getting a sweet deal here.
Taxi Driver: No, not $25. $45….(hesitation..as I once more begin to back away from the taxi)…ok fine, get in, get in…$40.
Me: (I get in the cab thinking $10 discount off his original price wasn’t so bad. But I still wasn’t done…) Good deal man.You are a good businessman. You’re going to make $7 more for going the same distance you would normally go for a fare to Brooklyn. You are a smart dude. If you could only get $25 every time for this ride you’d be making some good extra coin. You’d be going the same distance to Brooklyn but instead of $18, you’d be making $7 more for the same time and effort.
Taxi Driver: No, I can’t do $25.
Me: Ok, pull over here and let me out.
Taxi Driver: Ok, ok, fine…$35..(he gives me a good explanation and I decide to flex on price a little bit..mostly because the guy seemed like a good guy…but I still wasn’t done..)
Me: Ok fine, $30. You win. You really are a smart businessman.
Taxi Driver: No, no..$35 my friend.
Me: Ok, that is better, but we are almost there. If we can do $30 then you have a deal. If you could give up $5 more than you’d be making $12 more instead of $7 for the same fare that it would cost to go to Brooklyn. Actually, if you did that, you’d probably be the smartest taxi cab driver ever.
Taxi Driver: Ok, fine $30.
Me: See, you are a really good businessman.
And after all that…I ended up tipping the guy back to $40 anyway because he seemed like a good guy.
M0ney Management Tactic #1 – Don’t give back the money you just saved from Negotiation Tactic #1.