Facebook pixel
Acumen Connections » Blog » OBO Meaning for Small Businesses Explained

OBO Meaning for Small Businesses Explained

OBO Meaning Explained Blog Thumbanil

What does OBO mean? Discover OBO meaning for a business

Have you ever come across the abbreviation OBO? If you’re trying to buy or sell something, you might see it often. In this article, we’ll explore what is OBO meaning and its significance for your business

Imagine it’s another Tuesday afternoon and you decide to look at marketplace listings in your area. Maybe you’re wanting to upgrade the decor in your small business space, and you don’t want to pay full price. Whether you look at consignment places or buy-and-sell groups on social media, it isn’t uncommon to see a listing that is marked a certain dollar amount followed by “OBO.”  

Acumen Logo Symbol

Revitalize your profit margin

See lower rates and greater gains. Enroll in our merchant discounting program today.

Revitalize your profit margin

See lower rates and greater gains. Enroll in our merchant discounting program today.

If you are a small business owner or an independent seller, understanding OBO meaning is essential. Still trying to decipher OBO meaning? Actually, there are several definitions on our OBO meaning list. Keep reading to uncover OBO meaning and how it plays out for your business.

What is OBO meaning?

What does OBO mean? Let’s cut to chase, shall we? When buying and selling items, the term OBO stands for “or best offer.” In simple terms, the seller has set a price for the item or service but is open to other offers.

Dark background bears Acumen Connections logo and brand name at the bottom. The graphic sports the heading what is OBO? Just below the heading, there is text describing OBO meaning as an abbreviation for the phrase or best offer typically indicates that a seller is willing to accept an offer lower than the asking price for an item or service they have listed for sale.

Let’s say I’ve listed a couch for sale online at $100. It is a used couch in decent condition, and I’ve had it for a few years. To me, $100 seems like a fair price. However, potential buyers may not share the sentiment. They may feel like $100 is too much for a used couch in less-than-pristine condition. As such, buyers may not be motivated to reach out to me. However, when they see “$100 OBO,” it opens up the possibility that they might be able to score the same couch for a lower price. If I receive multiple offers, I have the option to pick the best offer on my couch. OBO opens room for negotiation. 

Speaking of negotiation, sometimes selling an item can have many layers to it. When you list an item for sale and add OBO, some people may make a higher offer to seal the deal. A few might offer a lower price but offer to pay in cash to help you save processing fees. They might also offer to pick up at the earliest, which would settle the deal sooner, so you won’t have to spend more time managing offers. Another potential buyer might offer you the asking price but want the item delivered. Depending on what your goal is, choose wisely. If you want the item gone within the hour, use that as a bargaining chip when someone sends you an offer. If you want close to the asking price, offer delivery services when negotiating with potential buyers. 

Alternative OBO meanings

In my quest to explain OBO meaning, I have compiled a list of common terms represented by the term OBO in various contexts. So, what does OBO mean? Let’s find out!

Dark background bears Acumen Connections logo and brand name at the bottom. The heading says alternative meanings of OBO. Bullet points just below the heading are as follows: on behalf of, objecting beneficial owner, one by one, operated by others, Overseas Business Office, Overseas Building Operations, oil-bulk-ore carrier, Oxford Bibliographies Online, Open Biomedical Ontologies.

There is more than one OBO meaning and they are used in different scenarios. As a business owner or independent seller, the OBO meaning that pertains to you is most likely “or best offer.” Keep reading to uncover more about OBO meaning and how it impacts your business.

Pros and Cons of OBO

There are upsides and downsides of using OBO in a listing. If you own or manage a consignment business, you must be aware of these. Take a look:

Pros Cons
  1. Offers room for negotiation for both parties
  2. You get more offers than you might at fixed price
  3. You have the choice to pick the best offer
  4. Your listing is likely to sell faster
  1. Time and labor intensive as you’ll need to compare various offers
  2. You might receive multiple lowball offers
  3. Buyers might perceive your item to be of lesser value than asking price
  4. Having to settle for a lower price than asking price

As you can see, there are some solid positives to adding OBO to your listings. However, there are also a few negatives. Striking a healthy balance here is necessary when you navigate adding OBO to your listings as a small business. There are a few things you can do to ensure that you get the most out of your OBO listings. 

How to get the best deal out of OBO listings

As a business owner or independent seller, you know there is value in having listings marked with OBO. Your goal is to make profit while creating positive experiences for buyers. Keeping that in mind, there are a few strategies you can adopt to get the most out of your OBO listings:

  1. Set a realistic price to attract reasonable offers
  2. Dedicate time to reviewing offers and negotiating
  3. Be aware of low ballers but keep the dialog courteous and professional
  4. Mention that you’re looking to sell quickly
  5. Maintain open and honest communication with buyers

When you reject one or more offers because you accepted a higher offer, be mindful of how you communicate that to them. You don’t want to burn bridges because some of these people and/or parties might be interested in your other listings. Building good relationships with potential buyers is at the foundation of running a successful business.

Ready to sell some stuff?

So, what does OBO mean? “Or best offer” is something sellers often add to their listings to encourage a profitable outcome. After all, you do want the best possible offer when selling an item. Keep in mind your priorities when you create a listing. All your interactions with potential buyers should be aimed towards fulfilling your priorities while being responsive and as receptive to reasonable offers as you can. 

I hope this article has been informative when it comes to what is OBO meaning and how you can use OBO in the best way for your business.  

Now that you’re ready to start selling, make sure you have a reliable credit card processor. Contact us at Acumen Connections for help getting set up with the best card machine for you.  We can even eliminate payment processing fees.  

Anna Reeve, MBA

Acumen logo icon

Hello! I am Anna with Acumen Connections and I love assisting small businesses in any way I can. I have worked in marketing for businesses of different sizes and industries. I believe that creativity and imagination are the hallmarks of content building. I enjoy creating blogs, social media posts, marketing emails, press releases, website copy, responding to reviews etc.

Meet Our Authors >

Leave a Comment

Your email address will not be published. Required fields are marked *