Now or Later

So here it is... I was reminded again this week why every deal is going to be a struggle in the beginning or in the end. Where do you want it? Do you want to fight to get the signature on the purchase order or do you want to struggle to get the financing approved? Six years of selling John Deere farm equipment and now over two years of selling credit card processing has supported what Dave Ramsey has used to build a personal fortune: most people don't understand financing and act purely on impulse.

My wife and I recently invited a "basement finishing" company representative into our home to learn more about his "proprietary" basement wall system. After playing with a tape measure and drawing imaginary walls on our unfinished basement floor, he asked if we could all sit around the kitchen table while he creates a quote. (Any self-respecting salesman knows that visiting is done in the living room and business is done at the kitchen table.) After I had told him I would be paying cash and wasn't interested in financing, he continued to present the price as a monthly payment. I reminded him a second time that I was interested in the total price as I would be paying cash. Without even hesitating, he responded with the following question: "What amount would you be comfortable with per month?" He didn't get my signature on the purchase order.

Do you want the best deal when buying a product? Negotiate a cash price. Salesman feed their families on cash prices and buy waterfront property on monthly payment prices.