Personal Financial Management - Chapter 8 Flashcards Preview

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Flashcards in Personal Financial Management - Chapter 8 Deck (17)
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Auction

A public sale in which property or items of merchandise are sold to the highest bidder

1

Consignment shop

Retail store where people sell items and the owner of the shop gets a percentage of the sale

2

Estate sale

Type of yard sales with more items, usual the entire contents of a household

3

Foreclosures

Process by which the holder of a mortgage sells the property of a homeowner who hasn't made interest and/or principal payments on time as stipulated in the mortgage contract

4

Integrity

Having to do with a person's honesty and moral attributes

5

Markup

Difference between the wholesale price and retail price

6

Negotiating (2)

To bargain for a lower price

When doing this, use integrity and avoid misinterpreting the truth

7

Patience

Ability to wait or delay an action without becoming upset or annoyed

8

Walk away power

Ability to walk away from a purchase when negotiating

9

Win-win

A negotiation where both parties benefit other review

10

Rebating

Sending in proof of purchase and receiving cash back

11

Where can you find a great deal?

If you find a convention that is closing down

12

A small part of a successful negotiation consists of...(3)

Gathering information on what the other person's needs, wants, and fears

13

It's proper to get a great deal if you (3)

1. Have no way in misinterpreting the truth

2. Haven't set out to harm the other party

3. Haven't created a win-win deal

14

Keys to opening the door to a huge bargain ? (3)

1. Learning to negotiate everything
2. Patience
3. Must know where to find great deals and trade something!

15

7 rules to negotiating

1. Always tell the truth
2. Use the power of cash
3. Cash has immediacy
4. Understand the use of "walk away power"
5. "That's not good enough"
6. Good guy, bad guy
7. The "if I take away" technique

16

4 places to find great deals

Individuals

Estate sales

Public auctions

Couponing