Hi All!

Hearing that WEB was asked to increase his $100/share offer for BNI and simply said "no" brought back the memory of one of the most valuable lessons my Dad ever taught me. So, if you will indulge me a bit, let me set the stage:

My Dad was a self-made man, who had to drop out of school in the seventh grade when his Dad died, in order to help support his Mom and four other siblings. Long story short, Dad went on to do very well in the insurance and building trades, so by the time I was ready to drive a car, we were financially well off....not rich, but comfortable.

Now, my Dad and Mom were both children of the Depression, so despite having "made it" financially, they were super frugal ( heck, my Mom still saves ever rubber band and paper clip to this day! ). The only "allowance" I got was $.25...and then only if I mowed the yard with one of those old rotary blade push mowers, whose handle was taller than me, as well as did all my other chores. Of course, the allowance disappeared as soon as I was old enough to get a work permit.

Well, as my "car time" approached, I began to drop hints to my Dad, such as " Do you know what kind of car my friend's dad just got him? It was a new Mustang!, etc. etc.". After more than a sufficient number of said hints had rolled off him like the proverbial water off a duck's back, he finally told me that if I wanted a car, go out and earn the money to buy it. If I did that, he would go with me when I went to buy it, and would teach me one of life's most valuable lessons...how to negotiate as a buyer.

After pumping enough gas and selling enough shoes, I finally had saved up $450 ( BIG money for me in 1962! ). Every day I would scan the auto ads to see what might be in my meager price range....and sure enough, there it was-- A 1955 Oldsmobile for only $475 at Paramount Motors! Well, since my Dad was an "Oldsmobile Man", and this Oldsmobile was in my price range, that was good enough for me. Color, schmolor?! Hey it was an "Olds"!

So Dad and I went out on my first car buying trip....and there it was..a two-tone green beauty of a 1955 Oldsmobile. Was I excited or what! But Dad had already told me to let him do the talking... and that my "job" was to learn from what would happen, so I bit my tongue.

After having the car checked out mechanically, Dad asked me for my hard-earned money and after I handed it over to him, he offered the salesman $350. Well, you can imagine the apoplectic look he gave Dad. "No way!" But he did come down to $425. Well, I'm sitting there thinking that this is GREAT! I've got $450 and we're down to $425...done deal!

But Dad continues on, citing certain imperfections on the vehicle, as well as his long-standing customer status with Paramount Motors , etc. ....and ups his offer to $375. The salesman counters with his "rock-bottom" price...$400. After further haggling to no avail, my Dad looks at me and says, " Come on Son, let's go! We're not paying more than $375 for that car"...and hands me my money back.

To say that I was almost in tears was an understatement! Why was my Dad being so stubborn?! I had $450...they were down to $400....what's the problem! I was just about to protest when Dad gave me "THE LOOK"....translation: don't you dare open your mouth! So, we turned and began to walk off the lot. After we got out of earshot, I voiced my feelings to my Dad, who simply said, " Just keep walking...it's not over yet!'

Sure enough, just as we were getting in Dad's car to leave, the salesman came running out to say that they would take the $375! Can you say "an absolutely thrilled 16 year old? "

As we were driving back, Dad and I had a discussion about what I should have learned from the experience. "The key principles to buying anything", he said, " are to decide what something is worth to you, always show them your money ( i.e. that you have the wherewithal to buy )...and then, NEVER pay more than what you think it's worth! Simply walk away if you can't get your price."

That lesson has stuck with me my entire life....and has served me in countless buying transactions, from cars and houses to the stock market.
I'm proud to say that my Son got the exact same lesson! ;-)

Cheers!
Murph
Income Investor Home Team Fool
( who doesn't know if WEB got as good a deal on BNI as I did on my '55 Olds, but who is willing to give him the benefit of the doubt ) ;-)