Ever wonder how to negotiate prices on the things you need? Is this a practice something that even works? I’m proof that it can and DOES save you money!
Did you know that it is possible to pay less than the list price on big ticket items at the store? I’ve done this myself and was able to save an additional 5% off of a 46″ LCD TV and television stand at a local furniture store. Read on to learn how to negotiate prices on the items you need – and get a better deal!
STRATEGIES USED TO NEGOTIATE PRICES
When you use cash, stores do not have to pay the credit processing fees (which is built into the price of every item). When you show them cash (not even a debit card or paper check), they know you mean business.
They don’t have to worry about fees, returned checks, waiting for payment from the finance company, etc. Cash can take you further. Just ask the store if they offer a cash discount.
We put this to the test when purchasing a television and stand and knocked another 5% off the price. It absolutely can work!
Know your competition
Before you walk into the store, do your homework. One thing you can do is find the same product at a competing store. Even though stores may not advertise price matching, they may be willing to offer you the same prices as a competitor, just to get your business.
Be prepared to leave
If you do not get the deal you want (within reason, of course). Be prepared to walk away. Sometimes, when they see that cash ready to walk out the front door, they might be willing to negotiate with you and find a price upon which you can both agree.
Ask for something of value to you
If you can’t get them to drop the price, perhaps you could get an item added for free, such as delivery or cables if you are purchasing a television. You don’t want to be too aggressive and ask for something very expensive, but you might get something for nothing if you negotiate it into your deal.
If you speak with authority, you will sound sure of yourself and as if you have done this many times before. Avoid raising your voice when asking something as it can give the sense of timidness and willingness to give into a price you may not want to pay.
Realize not all stores are willing to negotiate
Some stores will not negotiate at all. It is just not their policy. If that is the case, you may need to try shopping elsewhere or just give in and pay the price on the store shelf.
As I mentioned above, we were able to negotiate a discount on our first attempt at asking. We weren’t sure they would do it, but we went in and showed them the cash, asked for a discount and were offered 5%. We were very happy with that. However, we were more thrilled that we paid for those items with cash and didn’t have to feel the burden of a bill coming our way in a few weeks (with hefty interest attached to it).
Have you ever felt that awkward silence when you are talking with someone? You may feel compelled to say something just to break the tension. In the case of negotiating, don’t. Let the seller come back to you first. If, after a few minutes, they say nothing, you can say thank you and walk away.
Know the seller’s cost
Obviously, the seller needs to make money. After all, if they won’t make the percentage they need to, they are not going to be willing to lower the price at all. Research costs and pricing before you shop, so you know the lowest price they may be willing to offer.
You read that right. Start with a ridiculously low offer. The seller is immediately defensive and may forget his or her regular negotiating tactics. In this case, they often counter with an offer that is more than what you want to pay, but usually less than the asking price.
It can be tough to do this because you don’t want to be a jerk. But, are you there to make friends or get a deal? You’ll likely never see this person again, so get the deal you want.
Don’t be afraid to try your hand at negotiating prices the next time you shop. It may be the key to getting the deal you want.