Should I Lower the Price to Get a Sale

If you have a listing, you may ask yourself what asking price is my sweet point.

Most businesses take months to sell.

During the weeks and months of selling your business, and talking to prospects you might get a little anxious to sell.

That is completely normal and natural.

When ascertaining if the price is the issue, then you want to analyze it from a few fronts.

Generally, a lower price will attract a quicker sale all things considering, most of the time. There are a few instances or exceptions to this, but more importantly it depends on a few factors if you should do it.

This applies to many properties including real estate and other inventory or assets.

First, how quick do you want a sale on 1-10. If you need to get out, like right away, yes make the price as attractive as possible. Undercut it by at least 20% of fair market value (where it will sell within 6 months).

This will signal to the market you’re serious but also attract as many leads as possible if the asking price is relatively proportional to the cash flow.

If you are at 5, that’s not necessarily a time to panic and do a huge price drop.

When we list a business we try to assess the real value and we factor in timelines to sell. That doesn’t mean you should hold out for max value with adequate analysis of timelines, and most business sales that generate max value are not 100% upfront cash deals.

The true test is understanding what’s the lowest you’d be willing to accept, and to structure the price in line with something above that so you leave cushion but close enough to make it attractive for leads and prospects and serious buyers who will place offers. If something is priced too high, it might prevent offers from coming in because they can’t justify parting with that much for it. You want prospects excited to acquire the asset. Most will undervalue what you have, not overvalue what you have, so keep in mind the closer your price is to true market value, the less they have in terms of justifications to move from that.

Reach out for help with acquisitions:

Email – acquisitions@jarbly.com

Phone – (800) 773-1523

Leader in Business Consulting with Expertise in Representing Sellers & Buyers on Deals

Jarbly is a leader in business consulting with expertise in helping with revamped strategies, enhancing valuation, positioning for an exit, and business and real estate sales.

Contact Us

Phone: (800) 773-1523
Email: support@jarbly.com

About Jarbly

JARBLY’s focus is on business consulting with an emphasis on creating disruptive ventures and high quality boutique services to enhance a business’ valuation and lead to a high quality exit. As JARBLY has been heavily involved in the digital space including its own ventures for a decade with servicing hundreds of clients around the world, it is very well versed with understanding technical aspects of a deal including value proposition, product offerings, marketing, metrics, ROI, moats, and value-add initiatives. JARBLY has the expertise and knowledge on various businesses, industries, and deals and is very creative with structure to help increase valuation, or help guide you to a strategic exit. JARBLY has helped brands grow and also cultivates business related and real estate opportunities that are ripe for acquisitions, helping buyers and sellers get what they are seeking from a deal.

Whether it comes to growing your business, including acquiring businesses you want to understand the deal. We understand deals and where the maximal value in a transaction is. Our bread and butter is to provide a win for our clients including positioning your company for an eventual high quality exit. We have the unique and uncanny ability to bring high quality materials to the table and renewed strategies that consistently work. We help with financial enhancements, implementing systems, and prepping your business with materials including Prospectuses, Confidential Information Memorandums, and high quality Value Proposition Decks.

JARBLY looks forward to working with you to enhance your business profits nad valuation and help you on your next acquisition, exit, or real estate opportunity including both commercial and high end residential properties with high end service from a qualified team of passionate individuals that help you secure the deal. JARBLY LLC is part of Trend Realty in Sarasota, FL operating the Boca division as the JARBLY team.

Jaret will hop on a quick call with you to understand your and your business.

Text or call (800) 773-1523 and Jaret can arrange to have a brief consultation with you at your business location before embarking on a series of consulting calls or a full immersion.

Should I Lower the Price to Get a Sale