The fun part about buying a car, a house or any other purchase you can think of is that many people brag about the “great deal” they got on the purchase, but most people really are intimidated by negotiation or “bargining.”
The truth is more simple. Retailers are usually fat and happy to take large profits on your shopping. They have used years of experience and tricks to “skim” money off of the middle class. If you look at them as your friend, you will be fleeced. They are waiting for you.
The other truth about right now is also simple. We live in the new era of the consumer. More information is now at your fingertips than ever before. Even if you don’t have a computer, you can go to the library and in about five (5) minutes have so much information to negotiate hundreds or thousands of dollars off of a purchase that you won’t believe your luck!
In other words, do your research before any purchase. Find out what it cost the retailer to get what they want to sell to you. Your goal is NOT to eliminate their profit, but your goal should be to save and pay an appropriate amount for your purchase.
Here are some tips:
1. Eliminate emotion. Whatever you are buying, they need your purchase more than you need to buy it. You must get to a place where you are willing to walk away. That is the place where negotiation starts. There are hundreds of places in today’s society (including on-line) where you can purchase any specific item. Retailers (on-line and in-store) have inventory and quotas. Put them to to the test. If you see a sales person, ask them for a discount on an item and they say no….ask for the manager. Do not allow their no to stop you from asking for more. After all, if you are a serious buyer, it is in their best interest to continue talking with you. If you leave their store, they’ve probably lost an important sale.
2. You should have a goal when you walk in the door. Based upon your research, you should establish in your own mind BEFORE you enter the “buying environment” what percentage you want to save on the sale price. Focus on reaching that goal from the moment you begin conversation about price. Don’t allow them to move you on price. Focus only on the item you want to purchase, and you should have your “case” on why you should receive a discount.
3. Often having your “case” on why you should receive the discount you ask for is based upon playing one retailer against another. Think it’s mean? It’s not – it’s business. This is especially good with cell phone providers and service providers.
4. Be patient. Once you’ve done your research, approach your purchase with patient. After all, there is an art to selling. There is an art to buying. You want to take your time and be firm about the direction of the conversation. Steer them to the lower purchase price by telling them that you are going to purchase this specific item in the next week and maybe today. Tell them you have done your research and give them examples of where you know you can save. Tell them that you appreciate your relationship with them and you want to do business with them….if you can. Then, talk price. Tell them anything you want that means you can’t….but then tell them you want to find a way to deal with them and purchase. This gets them excited or invested in the selling of the item to you.
5. Leave Being Shy At Home. That’s right. If you don’t ask for a special discount or price, you can’t expect to get one. These sales people know that the environment is tough all over. They want the sale. But if you don’t ask them for a better price, they are not going to give you a thing. What is the worst thing that could happen? They could say, “No.” So what? Ask. Ask again. Ask to see the manager. Talk about tough times. Talk about how much you like them and love their store. Talk about anything that gets them to focus on investing in your sale.
Follow this advice and you will save more money every time you purchase an item. And don’t buy that old “We don’t negotiate.” If they don’t negotiate, go somewhere that will. It’s also important for you to frame the issue. You must make it clear that you are ONLY interested in the lowest out-the-door price on the item you are willing to purchase.
Finally, you don’t save money if you get or negotiate a discount and leave the money you saved in a checking account. Checking accounts are money laundering accounts for other people’s money. If you get a 10% or 15% discount on an item, you should move that amount to your savings vehicle. That one tactic is going to help you grow wealth a lot faster than you think.
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