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Discover How To Make Better Deals With Vendors and Creditors

By Michael Redbourn

Republish: EasyPublish™ Published: 06Oct2009 Word count: 997 Viewed: 485 time(s) Get Free Content For Your Site

If you ask most people why they don't haggle more before they hand over their hard earned money, they'll more than likely tell you that it's because they don't feel comfortable doing it, but the bottom line is that there's no reason why asking for a better deal should make anyone feel uncomfortable or embarrassed.

The reason that most people, and men in particular, don't like doing it is partly cultural and partly upbringing, and if you've traveled the middle east, the far east, South America or even Mexico, then you'll know that if you don't try to negotiate then you're not only considered somewhat stupid, but from the seller's point of view, you also took all the fun out of the buying and selling process.

There is a standing joke in Israel which goes, "How do you make a storekeeper angry in Israel?", and the answer is, "you enter the shop and ask how much something costs. The store keeper tells you $155 and you pay him the $155 and leave. The storekeeper slaps his thigh and asks himself angrily why he didn't ask for $199".

Let's be clear that I'm not talking about negotiating in a coffee shop, or your local supermarket, but you can definitely negotiate a better price in more places than you'd probably imagine, and you'd be really silly to buy expensive jewelry, or a car at the asking price, and you might well be able to lower the price of even things like dental work if you just push a little.

The First Truism

a) Something is worth what somebody is willing to pay for it.

If you want a quick example of this then look no further than what has happened to real estate prices in the U.S. over the last year or so. People bought properties at inflated prices and lenders gave the loans because they felt sure that the price would go up. They went down because people wouldn't pay the prices.

The Second Truism

You have the right to ask for a better price, an extended warranty at no extra cost, or a first-time-customer discount etc. and the seller has the right to refuse. There is no shame in your asking for these things and no shame in being refused them.

The Third Truism

The vast majority of sellers would much prefer to give you a 5-10-20% discount rather than have you leave the store without buying anything. In many countries the seller will rush to the door after you leave, and tell you that you'll get a better deal if you come back, but that won't often happen in the U.S. or Europe.

You're the one that needs to ask for the better price, so here are six negotiating tips.

1) A Bird In The Hand

Offer to pay cash and you'll almost always get a discount. There are many reasons for this but the most obvious one is that when you pay with a credit card it costs the seller an immediate 2-5% depending on the card that you use.

If you want to play with the seller's head a little, then offer him a Diner's Club or American Express card and then ask if there's a discount for cash.

They charge vendors nearly twice as much as Visa and Master Card.

2) Don't Talk Too Much

After you ask for a discount, keep quiet and wait. It might not be easy but you must leave the ball in the seller's court.

3) Make Sure The Seller Spends A Lot Of Time With You

Someone that walks into a store and immediately asks for a discount will have far less chance of getting one than somebody that has taken twenty minutes of the seller's time.

4) Never say, "Let me be honest with you".

How would you feel if after several minutes of conversation somebody said, "Let me be honest with you".

You'd have to ask yourself what he'd being doing up until then.

5) Take It Or Leave It!

Don't ever say, "Take it or leave it".

You'll almost never get a better deal by offering an ultimatum, but you might well be shown the door.

6) Never Say "What's the lowest price that you'll accept?".

First of all, the seller will never tell you, and secondly he'll have serious doubts about wanting to deal with you at all.

Negotiating With Creditors

Negotiating with credit card companies or other lenders is not dissimilar to negotiating with vendors.

1) Asking a credit card company to lower your interest, or forgive a part of your debt is not a shameful thing to do.

2) A lender would much rather have you repay a part of you debt than have you file for bankruptcy.

Supposing Negotiating Just Isn't For You.

If you just can't bring yourself to negotiate, then have someone do it for you, and even if you pay them for doing it, you'll still come out ahead.

I used to hate selling my cars, and didn't want to quibble with the dealership where I was buying the new car, or haggle with private parties, so I used to call a friend of mine who excelled at wheeling and dealing, and after finding out what a good blue book price would be, I'd tell him that anything that he got over and above that price was for him, and we'd always both end up happy.

If you want somebody to negotiate with creditors for you, then only use a company or agency that is BBB (Better Business Bureau) approved, and if you're staring bankruptcy in the face, then you can most likely get a free consultation with a skilled bankruptcy attorney in your area.

There is certainly nothing wrong with getting the best deals that you can get, and not even trying would really be selling yourself short, so next time you want to purchase something, remember the above tips and put them to good use, and save yourself a growing amount of money.

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