Negotiating Tips to Save Money

Are you interested in saving money on about any item you purchase? Did you know you can do this with the power of negotiation? Did you also know that just about everything is negotiable? Believe it or not you can negotiate on almost all of your purchases. This means if you aren’t negotiating you are losing money. You are leaving money laying on the table and walking away.

This article will help you save that money by leaning about negotiating. You don’t have to be a remarkable negotiator to save money. All you have to do is learn a few basic things about the subject. This article will teach you what you need to know.

First you need to know what negotiation really is. Most people think it’s about getting a lower price. That is part of it but not all of it. Negotiation also consist of getting free items add to your deal. It’s also about getting better terms for your deal. All of these things make up the total package of negotiation. You can learn to do all of this with just a few simple techniques.

Lets start with learning to negotiate with the big box stores. You know the ones that says they have the lowest prices. The ones most people would never dream would negotiate a price. Well guess what? They will negotiate with you under the right conditions. There are several ways you can accomplish this. Start by always asking if this is the best price they can do. If this doesn’t work, here’s what to do.

1) Ask if there is a discount if you took the floor model.

2) Ask if they have a scratch and dent item like the one you want at a discount.

3) Ask if there is a discount if you pay cash money. Merchants usually have to pay credit card companies a three percent transaction fee on all credit card purchases. Ask the merchant to gave you the three percent off instead of paying it to the credit card company. Tell him you will pay him cash if he does. He will net the same profit margin on the sale either way it’s processed.

4) Ask the merchant to include some small item if he can’t reduce the price.

5) Always ask for free or reduced delivery fees.

6) If the person you are dealing with says he can’t or it’s not store policy, politely ask to speak to the person in charge. Then ask them for a discount. Remember all store policies can be broken.

The common component and key to all of these methods is one thing. You have to ASK! Most people have been conditioned not to ask. So, they don’t even try. By not trying you differently won’t save any money. You will always be paying full price for everything you buy. You should always ask for a discount on everything you purchase. The worst thing that can happen is someone might tell you no. Then again you might just save some money by asking.

Let’s move on to the area here negotiating is the norm. This would be sales like private party, furniture, antiques, boats, cars, or houses. Usually the higher the price the more acceptable negotiating becomes. This type of negotiating requires a little more strategy than asking for discounts at big box stores.

The first thing you need to know about this type of negotiation is the opening price offer. There are two schools of thought on this. There is one strategy that believes you should never make an opening offer. You should always ask the other person what is the least they would take for an item. This way they may offer you a price lower than you were prepared to offer. The second strategy is the one that I like the best. It is just the opposite of the first one. It believes you should always make the first offer. The difference is you make a very low (sometimes called lowball) first offer. This is to psychologically set the stage for the other person to get use to thinking in lower terms.

Here are ten tips about the negotiation process after the opening offer.

1) The first thing you need to do is know your limits. That is when to walk away from the negotiation because it has become a bad deal.

2)The second most important thing, after setting limits, is to make sure you are dealing with someone who has the authority to make a deal.

3) Never give any type of concession without asking for a concession in return.

4) Offer to give concessions which are perceived to be of high value by the other person, but are of low value to you.

5) Start by offering your biggest concession first. Then make concession offers smaller and smaller. Tell the other party you are getting close to your limit.

6) Offer to split the difference between two offers works well at closing a deal.

7) Ask the other person for their help in making the deal. Here’s how it works. Tell them you are very interested in the item. That you would really like to have it. But, tell them they are a little above your limit or amount of money you have. Ask them if they is any way they could help you make this work. This way you are both on the same side of the negotiation. There are no adversaries with this method. This technique works extremely well.

8) When the other party has reach their bottom price tell them you will take the deal if they could throw in something extra. When using this technique ask for something small. Don’t try to break the bank when you know the other party is at their bottom.

9) Here’s a similar technique called the nibble. Use it when everything has been agreed to in principal but before anything has been closed or signed. Tell the other party you are now having second thoughts about the deal. Tell them it would help you to move forward with the deal if they could throw in a small specific extra. They will probably give in to your terms rather than think they’re about ready to lose a deal.

10) Never threaten to walk out of a negotiation unless you mean it. This is because someone might call your bluff. You can give indications or hints that you might walk out. With these, you can always back track if someone calls you hand.

These methods listed here are only the beginning when it comes to negotiations. There is a lot more to learn. There are two ways to learn more about negotiating. The first way is to read all you can on the subject. The second way of learning is by using trial and error. Try different negotiating techniques to find out what works best for you. Learning by experience is sometimes the best teacher.

The key to making this work is simple. Ask for a discount with every purchase! This may mean you have to step out of your comfort zone. The way to do this is to not focus on the asking part. Focus instead on the money you will be saving. Also, think what is the worst thing that could happen. The worst thing is someone might say no to you. They might also say yes to you which would save you money.

Now you know the basics of negotiating. You know enough about it to save you some money. The key to all of it is to be bold enough to use it. You should always being asking for discounts. Are you bold enough to do that? If you are, you will be surprised by the results. It will put extra money in your pocket! Best of Luck with your negotiations!