November 2007
How to haggle
Regardless of what you're bargaining for, you can improve your success rate. First, try not to be shy when you bargain. You
won't be forcing merchants to negotiate: If they give you a bargain, it's because they can afford it. Second, keep it pleasant.
Savvy negotiators know that a smile is harder to resist than tough talk. "Negotiation's goal," says Cohen, "is to produce
a mutually acceptable agreement among the parties." Other bargaining tips:
Be open to discussion. Don't demand a discount or issue a take-it-or-leave-it proposition; be more creative. If you're a loyal customer or like to shop locally, tell the merchant. If you'd like the item but it's beyond your budget, ask, "Can you work with me?" If a local competitor is selling the item for less, mention that. The store may be willing to match your best quote. "My best discount accomplishment," said Mary Ott, an economist from Potomac, Md., "was persuading a chain store with a 'pardon our dust' sign in its remodeling-in-process TV department to give me a discount on a TV as its pardon." Ott was interested in a Sony flat-screen set priced at about $900. As an incentive, the store offered a 5 percent discount coupon toward a future purchase. Ott wanted the discount immediately, so she approached the manager and saved $45 right away.
Gauge the seller's need. Sellers of goods with limited shelf life may have extra incentive. A car sitting on a lot for months is costing the dealer. Similarly, if the seller of a house has already bought another, he or she may need to drop the price quickly. Patience can earn rewards when you bargain, too, if you don't have your heart set on the product. Susanne Handel, a school counselor from Eastchester, N.Y., admired a large clay vase, priced at $300, on the first day of an estate sale. She returned on the last day and found that the price had dropped to $200 but the vase still had no takers. She offered $100 and got it.
Be discreet. Sellers may not want to broadcast the deal they're offering you.
Know what's a fair price. Research the product's cost before buying. Print out Web pages, save flyers, or request a written quote from a competitor. Call the store and ask whether the merchant will match your best offer. When you bargain, ask the seller to guarantee a refund of the difference in price if the item is offered for less within a reasonable period. If you can't get a discount, ask for shipping, delivery, installation, or an extended warranty at no extra charge.
Be empathetic. That's always good advice, of course, but it can also bring tangible benefits. When Thomas Toner, a retired surgeon from Hanover, Pa., saw a customer being obnoxious to a Sears saleswoman, he consoled the worker for having to put up with a boor. By the end of their conversation, Toner had the clerk laughing. In return, she offered him a 15 percent discount on a DVD player.
Deal with the decision maker. If a salesperson isn't empowered to give you a discount, find out who is. At chain stores, that's typically a manager or supervisor. The same holds true when you're negotiating fees for professional services. If your medical plan doesn't cover the entire cost of a procedure, talk to the doctor, not the office manager, about a compromise on out-of-pocket expenses. Consumers Union medical adviser Marvin Lipman, M.D., who has a private practice, says he has given significant discounts to uninsured patients who have asked for a break.
Negotiate from a position of power. The best time to bargain is when you have the upper hand. For some highly competitive services--cable television and satellite radio, for starters--your continued business is especially important because it's expensive to lure new customers. When it's time for you to renew, ask for extras such as more minutes for a cell-phone plan. Make it clear that you're willing to take your business elsewhere.
If you can't afford to renew at full price, see whether the company will court you with free service for a few months or reduce the overall price.
Bargain in person. When you bargain, haggling face-to-face can be more effective than using e-mail or the phone. In our recent survey of readers who stayed at hotel chains, for instance, more than half who asked for a lower rate or a room upgrade at check-in were successful, compared with only 32 percent who negotiated over the phone.
Time your shopping. Cars are often on sale in November and December, when people are focused on the holidays, so negotiations then can be particularly effective. If you collect your tax information in February, ask your preparer for an early-bird discount. And ask salespeople whether an expensive item will be on sale soon; they may be aware of specials weeks in advance.
Find fixable flaws. Many goods have minor blemishes that you can live with or easily repair: a missing button or dings on a refrigerator, for example. Show the flaws to the seller. "The more you point out," says pawnbroker Max Edison, "the more the price drops."
Offer to pay cash. Merchants may offer a discount because they don't have to pay transaction fees to a credit-card company. Such fees are about 2 percent for large retailers and as much as 8 percent for small ones.
Be open to discussion. Don't demand a discount or issue a take-it-or-leave-it proposition; be more creative. If you're a loyal customer or like to shop locally, tell the merchant. If you'd like the item but it's beyond your budget, ask, "Can you work with me?" If a local competitor is selling the item for less, mention that. The store may be willing to match your best quote. "My best discount accomplishment," said Mary Ott, an economist from Potomac, Md., "was persuading a chain store with a 'pardon our dust' sign in its remodeling-in-process TV department to give me a discount on a TV as its pardon." Ott was interested in a Sony flat-screen set priced at about $900. As an incentive, the store offered a 5 percent discount coupon toward a future purchase. Ott wanted the discount immediately, so she approached the manager and saved $45 right away.
Gauge the seller's need. Sellers of goods with limited shelf life may have extra incentive. A car sitting on a lot for months is costing the dealer. Similarly, if the seller of a house has already bought another, he or she may need to drop the price quickly. Patience can earn rewards when you bargain, too, if you don't have your heart set on the product. Susanne Handel, a school counselor from Eastchester, N.Y., admired a large clay vase, priced at $300, on the first day of an estate sale. She returned on the last day and found that the price had dropped to $200 but the vase still had no takers. She offered $100 and got it.
Be discreet. Sellers may not want to broadcast the deal they're offering you.
Know what's a fair price. Research the product's cost before buying. Print out Web pages, save flyers, or request a written quote from a competitor. Call the store and ask whether the merchant will match your best offer. When you bargain, ask the seller to guarantee a refund of the difference in price if the item is offered for less within a reasonable period. If you can't get a discount, ask for shipping, delivery, installation, or an extended warranty at no extra charge.
Be empathetic. That's always good advice, of course, but it can also bring tangible benefits. When Thomas Toner, a retired surgeon from Hanover, Pa., saw a customer being obnoxious to a Sears saleswoman, he consoled the worker for having to put up with a boor. By the end of their conversation, Toner had the clerk laughing. In return, she offered him a 15 percent discount on a DVD player.
Deal with the decision maker. If a salesperson isn't empowered to give you a discount, find out who is. At chain stores, that's typically a manager or supervisor. The same holds true when you're negotiating fees for professional services. If your medical plan doesn't cover the entire cost of a procedure, talk to the doctor, not the office manager, about a compromise on out-of-pocket expenses. Consumers Union medical adviser Marvin Lipman, M.D., who has a private practice, says he has given significant discounts to uninsured patients who have asked for a break.
Negotiate from a position of power. The best time to bargain is when you have the upper hand. For some highly competitive services--cable television and satellite radio, for starters--your continued business is especially important because it's expensive to lure new customers. When it's time for you to renew, ask for extras such as more minutes for a cell-phone plan. Make it clear that you're willing to take your business elsewhere.
If you can't afford to renew at full price, see whether the company will court you with free service for a few months or reduce the overall price.
Bargain in person. When you bargain, haggling face-to-face can be more effective than using e-mail or the phone. In our recent survey of readers who stayed at hotel chains, for instance, more than half who asked for a lower rate or a room upgrade at check-in were successful, compared with only 32 percent who negotiated over the phone.
Time your shopping. Cars are often on sale in November and December, when people are focused on the holidays, so negotiations then can be particularly effective. If you collect your tax information in February, ask your preparer for an early-bird discount. And ask salespeople whether an expensive item will be on sale soon; they may be aware of specials weeks in advance.
Find fixable flaws. Many goods have minor blemishes that you can live with or easily repair: a missing button or dings on a refrigerator, for example. Show the flaws to the seller. "The more you point out," says pawnbroker Max Edison, "the more the price drops."
Offer to pay cash. Merchants may offer a discount because they don't have to pay transaction fees to a credit-card company. Such fees are about 2 percent for large retailers and as much as 8 percent for small ones.
