Quote:
Originally Posted by dtype38
Not wishing to show my ignorance.... Lemon effect?
|
Sorry
.
It derives from a "Lemon Car".
Which is a car which has been available for a long time, or at a price which is under the normal market value (like your RV), and because of this scares away buyers, as they fear the offer is too good to be true, and walks away of the fear of hidden surprises.
You can compare it to meeting a woman/man, which you find attractive. However when you find out that the person has been single for a very long time, you start to wonder what is wrong with her/him, since she/he hasn't had a relationship.
Or more simple:
If I offer you a Rolex for 10£, you wouldn't take it, as you fear it's a fake to that price
.
The term "Lemon" is actually used in all markets, and can be fatal for a company.
To Relate to your RV:
The price might be so low, that the buyers fear you selling it because you know it has a fatal flaw, and you there want to get rid of it as fast as possible!
The best way to counter the Lemon effect, is to take it off the market for some time (a month or so) and re-enter it at a price reflecting it's value (perhaps a bit too high so the buyer feels that there is room to haggle/bargain for the price)