One of my favorite past times is human behavior. Yes – I am a complete nerd, but I love watching the behaviors and patterns of people and learning about them, what makes them tick, how to exploit them, and how to profit from them. My experiences on Craigslist is no different.

I have sold to hundreds of different people over the years, if not thousands. Everyone has a different reason and need to buy. But all of them had done something during the buying phase which helps me price items.

The Famous Craigslist Price Negotiation

Most of the sale that I have ever made on Craigslist has always been less than the asking price. Now – you may think that is an issue, but keep reading and Ill show you how I use that to my advantage.

People on craigslist are looking for deals and/or to save a few bucks.  That is the only reason why they are on there hunting for product. If they wanted to pay full price, they would have gone to the store to get what you are selling. But instead, they continually look through thousands of annoying, spammy ads (not yours of course – right?) until they find the one deal they are looking for. And because they are looking for deals, people will always try to offer you a lower price than you listed. And this puts you, the seller, into a wierd postion. You know what you want for it, but if everyone is going to offer you a lower price, how do you ensure you get the highest possible price for your item?

Offer A Higher Initial Price

By offering an initial higher price, you will counteract the “cheaper price” that people offer and actually get what you want for your item. You will may scare away a few people and put less eyes on your product, but those that do see it will nearly immediately offer you a lower price, the price you are hoping to get. If you want to get $50 for an item, offer it at $60. More than likely, someone will email you “Willing to take $50 for it?” And yes – you are willing. They buyer gets the feeling they are getting a deal and you get your money.

You also will benefit of of those “gotta have it” guys that will actually email you and offer you $60. $10 more than you wanted. You’re OK with that, right?

Do Your Research

Don’t get greedy here. If you are selling a surfboard and its worth $100, don’t post it for $450. People know what it is worth – your listing is side by side with hundreds of other of the same items. No one will touch your over price surfboard. Make sure to do your research and know what you higher end of your pricing is. You want people to click on your ad so price appropriately. This is easy to do research on cragislist, just click on a few other ads and find one that is over price and mark it around the same. Remember, if someone wants it, they will make an offer – which is exactly what you want.