Chances are, you?ve recently found yourself lamenting the cost of things these days, and wondering how everything got to be so expensive. Well, rather than automatically hand over the sticker price for a purchase learn how you can negotiate a better deal and save yourself some money.
Haggling on price is not something which must be reserved for the market place on your next vacation, instead there are six tips you can use to help you pay what you believe is fair price, rather than the market up retail price. And don?t feel bad?if the seller really couldn?t afford to offer you the discount they wouldn?t, no one is going to run their business at a loss just to clear stock.
1 ? Know what you want to pay
You can?t negotiate a better price if you don?t know what that price is because negotiating is all about directing the sale towards the price you want to pay with these subtle tips ? therefore you need a starting point. All you need to do is consider the selling price and decide on what you think the item is worth and what you?d like to pay for it.
Then start negotiating with the seller below your ideal price because if your first and second offers are knocked back, your third offer could be accepted at your ideal price. Plus, you may be able to get the item even cheaper, since the seller doesn?t know your limit.
2 ? Find hidden flaws
If you?re not getting anywhere in trying to reduce the selling price, point out flaws or defects in the product. Perhaps the item is a display model and has a few scratches or doesn?t come in a box. These are perfect reasons for a seller to offer a discount, especially when you start pointing out these flaws and they begin to think that maybe the item isn?t worth as much.
If you?re at a garage sale or at a market you can point out the disadvantages or defects of one item over another and though you may not care, you have inserted leverage into the negotiations which now has the potential to save you money.
3 ? Take your time
Don?t immediately jump at an offer which sounds good without considering it fully. There are plenty of slick sales people out there who are not new to the negotiation game and they know how to spin an offer and skim over your questions and concerns to make the sale.
Think about the offer and what it really means; a good way to do this is to repeat the offer back to the seller to clarify the details, but make sure you listen carefully. Remember that if a price sounds too good to be true it probably is, so consider why the seller would be offering such a great deal. Also don?t be influenced by a sob story and don?t be distracted by the seller because many sales people will try to befriend you and search for commonalities between you to make you doubt your ability to negotiate with a ?friend?.
4 ? The power of confidence
A successful negotiation is about confidence and if you think something is overvalued, then stick to your guns and negotiate to save yourself some money. Have an attitude of success by making sure you stand up straight, don?t fidget and look the seller in the eye. Speak clearly and concisely and leave your emotions out of it, getting angry or frustrated will not win you the best deal.
5 ? Negotiate with someone who can make the decision
If you find yourself negotiating with someone who is not actually authorized to offer a discount you will be negotiating to reach a lower price, but that price then has to be approved. You were not actually part of a real negotiation as the real negotiation starts when you are able to talk to the manager. You risk losing your focus and motivation if you have to start all over again.
6 ? Save money through your job
Having more money isn?t always about direct savings on the ticket price of things you buy. You can negotiate with your boss to see if your job can help you save. Many companies are not able to negotiate a pay raise at the moment because it?s still simply not in the budget. However, you can negotiate to add value to your employment package.
This is the golden rule of successful negotiating because you shouldn?t give up something ? a pay raise ? without getting something in return ? like an employment benefit. Therefore, consider what you want to be able to save money on and your employer may be able to include that in your employment package. For example, they may be able to add health benefits for you so you can save on the private health cover you?re paying for to cover yourself and your family.
Alternatively your employer may be open to salary sacrifice, where your pre tax income pays for something you need for work. For example, instead of receiving a $5,000 pay raise, your employer may pay for a new lap top or for your home phone and internet if you take work home.
Moral of the story: nearly everything?s negotiable–find ways to use that to your advantage.
Alban is a personal finance writer at Home Loan Finder, which offer information on reverse mortgages.
We negotiated a purchase yesterday on some electronics, and I found myself wondering if they get people who walk in and just pay full price…
Jackie – I’m guessing most people do pay full price, either because they’re used to doing it, or because they don’t want to offend anyone. But it’s always well worth tying to negotiate. At best you can save a bunch of money, at worst–you’ll be no worse off than if you didn’t try.
You definitely need confidence to do this. You don’t want to sheepishly ask for a discount. I need to do this more actually.
Jason – Confidence–most definately! That’s the key to most endeavors.