Today, I sold my motorbike. I wasn't too stressed about it—I always knew I'd sell it eventually—but I wasn't sure how it would go down. Would I lose money? Could I break even? Maybe even make a profit? Turns out, the answer revealed some fascinating lessons in both microeconomics and real-world negotiation strategy.
I bought the bike for 7 million dong (around $275). Throughout my trip, I asked locals and travelers how much I could resell it for. The feedback was all over the place—some said 7M was a fair price; others told me I'd be lucky to get 5M. I started to realize that in informal markets like this, price discovery is decentralized and subjective. There's no Kelley Blue Book—just supply, demand, and perception.
When I got to Hoi An, I began seriously searching for buyers. The first offer I got was 2 million dong. The guy told me the engine was messed up. A classic lowball—possibly true, but definitely an anchoring tactic designed to reset my expectations. (I rejected it, obviously.)
The next buyer gave another low offer, citing mileage. I wasn't convinced by his reasoning, but I started sensing a pattern: everyone was using some version of asymmetric information to justify lower offers. They'd highlight imperfections (some real, some exaggerated) because they had more experience with bikes than I did, and they knew I was trying to sell fast. This is a textbook information asymmetry problem that shifts bargaining power to the buyer.
Later that day, I got a Facebook message from someone offering 5.5 million dong. I was happy with that—still under what I wanted, but reasonable. He test-drove the bike, then pointed out a rattling sound in the engine. This made me nervous, because I'd noticed it too after a minor crash involving a dog. Even if the bike functioned fine, that noise was a negative signal—a psychological red flag that could lower the perceived value, regardless of actual mechanical damage. Buyers get skittish when they hear unexpected sounds.
So I took it to a Honda dealership. They confirmed the rattling but told me they'd take a look first and wouldn't charge me unless they fixed something. I sat down with a free ginger tea from their café (top-tier dealership), called my friend Juwan, and waited. Thirty minutes later, they told me it was fixed—and the cost? One dollar. That repair probably saved me 1 to 2 million dong in lost value. It's a classic example of investment to protect an asset's resale value—a microeconomic decision where a small input drastically preserves final utility.
Armed with a quiet engine, I resumed my hunt. One dealer offered me 3.8M dong, citing crash damage and alignment issues (he even checked the serial number—respect). I knew I could do better.
At this point, I had decided on the lowest price I'd accept: 4.5 million dong. In negotiation terms, this is called your reservation price—the number below which you walk away. It's different for everyone, based on how much time you have, how badly you need the money, and what other options you've got. My best alternative—if I didn't sell the bike—was to wait a few more days or ride it to the next town, which wasn't ideal but still an option. That backup plan is known as your BATNA (Best Alternative to a Negotiated Agreement). Knowing both your reservation price and your BATNA gives you power in a negotiation because you're not making decisions out of desperation.
I went to another shop, asked for 6M. He offered 4. I countered with 5. We settled at 4.5M. He was eager, cash-ready, and I could tell the negotiation was tilting toward a close. This was a great example of anchoring and midpoint movement. I set the price high, he anchored low, and we met in between. Mathematically, anchoring even just 500K higher than your real target can net you significant gains in markets like this.
In the end, I lost about $100 on the bike—but considering the 1 month trip and the freedom I had, it was still cheaper than renting. And beyond that, I gained valuable firsthand experience in negotiation psychology, market asymmetry, and the dynamics of informal international resale markets. The bike itself became a live case study in applied economics.
Also, a side note: a lot of friends have reached out lately, saying my posts are inspiring them to travel. Maybe one day I'll build a business around that idea—helping more Americans realize this life is not only possible, but practical.
After getting the 4.5 million dong in cash, I had one last move to make: convert it to dollars. This opened up another interesting economic question—what's the best way to exchange money in a foreign country, especially when the local currency is weak? Right now, the Vietnamese dong is at a historic low against the dollar. That's largely due to a combination of U.S. interest rate hikes (which strengthen the dollar), weaker domestic inflation controls in Vietnam, and broader capital flows toward the safety of developed currencies. In simple terms: people want dollars, not dong, and that weakens the latter's value.
When I looked around, two money changers were offering wildly different rates. One quoted 26,000 dong per dollar. Another, just a block away, offered 25,500. That 500 dong spread may not seem like much—but when you're exchanging 4.5 million, it adds up. At 26,000, I'd get about $173. At 25,500, I'd walk away with only $176. That's a $3 difference just by choosing one window over another.
This is classic arbitrage territory. These shops operate in fragmented micro-markets where they can set their own spreads based on foot traffic, tourist desperation, or even just psychological cues (a fancier sign can imply a "safer" rate). And they rely on information asymmetry: most people don't do the math on the spot. The economics of it are simple—each booth is its own tiny FX market, where buyers and sellers meet in a temporary equilibrium skewed by urgency, perception, and confidence.
It drove home the fact that every interaction—whether selling a bike or exchanging currency—is a negotiation. You're always navigating between perceived value and actual value. And often, the difference comes down to how prepared you are, how informed you are, and how comfortable you are walking away.
On a lighter note, today wasn't just about economics and negotiations—I also picked up my tailor-made linen shirt and pants, plus a custom pair of Birkenstocks. Both turned out great. Lastly, one thing I'll really miss about Southeast Asia are the incredibly affordable gyms. I trained today at a local spot for just two dollars—shirtless, shoeless, with a sauna included. Can't beat that.