haggle

Negotiating to Better Your Finances

January 26, 2016 By Alexa Mason 1 Comment

A lot of people become nervous when it comes to talking about money, sometimes to the point of avoiding any and all conversations that revolve around money. But there are certain times when it’s necessary to talk about money, especially when it relates to negotiating for a better deal or rate on a service or product. But not everyone knows when they should and shouldn’t negotiate, so here are a few different items you should always try to discuss in order to better your financial situation:

Negotiating Salary

There are a lot of mixed messages about negotiating salary amounts at a job. Some financial advisors or job coaches recommend it while others advise against it. However, trying to negotiate for a higher salary or a yearly raise is something you should at least attempt. There are several ways to negotiate for a higher salary or a yearly raise.

Negotiate Work Benefits

If negotiating for a higher salary or raise isn’t an option, you should consider negotiating for better benefits instead. Benefits and compensation packages can include anything from better healthcare coverage to free memberships at gyms or clubs. You may even ask for more paid vacation time or find out that you have discounts on certain products or businesses. Benefits and compensation packages usually account for 30% of an employee’s wage, after all.

Haggle Car Price

Haggling over the price of a new or used car is nothing new, but you may be surprised by how many people are reluctant to negotiate the sales price. Sometimes haggling over the price of a new car can work out in your favor. When it comes to used cars, it’s always best to try and lower the sales price. People often try and sell their cars for more than they are truly worth, so it’s in your best interest to try and negotiate down to a lower price.

Mortgage Rate Haggling

Mortgage rates are another area where you should attempt to negotiate prices. Before you decide on a mortgage, you should shop around and make sure you know what each lender has to offer. There are a lot of associated costs and fees with a mortgage and it’s important to talk to your lender or broker and see if you can negotiate to a lower price or waive the fees entirely. The Federal Trade Commission provides some tips on negotiating mortgage terms, loans, and fees here.

Rent Payment Negotiation

If you rent an apartment or house instead of own, think about trying to negotiate your monthly or yearly rent or any associated costs. If you’re a good tenant who has stayed in the same place for awhile and always paid on time, you may be able to negotiate a deal where your rent isn’t raised. Or, you may be able to negotiate a deal where your landlord covers utilities as part of the rent instead of making you pay for them separately.

Haggling Cable and Internet Fees

Negotiating for lower cable and internet fees and charges is perhaps one of the easiest deals to make, but one people rarely take advantage of. You can often haggle for lower prices if you mention better competitor prices or threaten to cancel your membership. Additionally, some cable and internet companies like to tack on fees in the hopes that no one peruses their bill carefully enough to notice.

Membership Price Negotiation

Sometimes it can be pretty easy to negotiate a lower subscription or membership price, whether it’s for a yearly paper or magazine subscription or a club membership. These businesses are often eager to get new customers and negotiating a lower fee could be as simple as telling them about cheaper competitor rates or threatening to cancel your membership.

Photo: Flickr: GotCredit

Discounts: Ask and You Might Receive

May 16, 2012 By Jennifer Derrick Leave a Comment

I and other financial writers often tell people to ask for discounts, particularly on large ticket items, because you just never know when a retailer might be willing to cut you a break. Many people are reluctant to try it, however. Some are afraid of being embarrassed and some think it just won’t work. The first I can’t help you with, although here are some tips for haggling. You just have to decide that it’s worth it to ask and not care what the other person thinks. For those who think it will never work, let me share a true story with you.

I recently had to buy a new battery for my car. Now, you have to understand that my car is designed in such a way as to make getting the battery out as difficult as possible. First, you have to remove one of the safety crash bars. Then you have to remove the windshield washer fluid tank. The battery lies underneath all of that stuff. Then you have to remove the battery and ,since the terminals are located on the back, sandwiched between the battery and the radiator, you should prepare to bend your arm in unnatural positions. All of this makes changing the battery take close to an hour. Most other cars take just a few minutes.

Anyway, I got the old battery out and went to Advance Auto. When I got there, the salesperson brought up my cars’ information in their computer so he could get the right battery. He turned the screen toward me so we could both look at the information. On the battery page for my car model is a note that the salesperson can see. It says, “Please note that changing this battery requires about an hour due to its location. Advise customer of the wait time.”

I laughed and told the guy that he didn’t have to advise me of the wait time, since I was doing the work myself and my car was currently in little pieces all over my garage. I didn’t miss the look of relief on his face at that news, especially since it was raining outside. He said, “Yeah, I’ve done those before and it’s a pain in the butt.” So he went off to get my battery. When he came back and started to ring it up, we talked a bit more about what a pain my car can be.

When he gave me the total, I jokingly said, “Since I’m saving you from spending an hour out in the rain, maybe you could give me a discount.” I was half kidding, but from where I was standing it wasn’t a bad offer on my part. Advance will install a battery for free, so if I’d wanted to make him do the work, I could have brought the car to the store and made him do it. As it was, I was doing some other work on the car anyway and changing the battery was part of a larger project so I opted to do it myself. Sparing him the misery of dealing with my car seemed like it should be worth something.

He thought for a second and said, “You’re right,” and he knocked $20 off the price of my battery. All because I made a half-joking comment.

The moral of this story is that you never know when simply asking might net you a discount. You should never demand, but always ask nicely or throw in the suggestion as part of a conversation. If you can build a rapport with the salesperson, as I did, and get them on your side, you might have a better chance of success. If they don’t want to do it, don’t get mean or huffy. You asked, they said no. That’s the end of it. If you’re upset about it, take your business elsewhere, but don’t cuss them out or call them names.

It’s always worth it to ask. It may work on everything from electronics to travel to even car batteries. Just simply say, “Are there any discounts or coupons that you might be able to apply to this order?” Or you can negotiate, maybe offering to give up a feature or perk that you don’t need for a discount off the price, for example. However you approach it, asking costs you nothing and might net you something.

(Photo courtesy of gtquast)

Haggle: Strange Ways to Save Money

September 9, 2011 By Jennifer Derrick 2 Comments

Haggling isn’t widely practiced in the United States. Sure, sometimes you haggle at the car dealer or maybe with some local craftsperson at the craft fair, but it’s not a big part of our culture. Most people are too embarrassed or unsure to even try it. However, many more places than you might think are receptive to haggling and it can be a great way to save some money.

I learned this lesson when I had to have some expensive dental work done that wasn’t going to be covered by insurance. The dentist quoted me a price that was far more than I wanted to lay out at one time. So I screwed up my courage and asked for a a discount. At first he said no, but then I said that I would go get a second opinion in a city that I knew was likely to be less costly. Suddenly the dentist, when faced with the loss of all money, was more willing to negotiate. We talked for a while and came to an agreement where, if I would pay cash, he would reduce the cost by forty percent and spread the work out over several visits so that I wouldn’t have to shell out a ton of money at one time. The deal was great for me and I suspect he still made a decent profit.

Since then, I’ve been more willing to haggle if the chance arises. Sometimes it works and sometimes it doesn’t, but it never hurts to ask. There is an art to it, though, and some things you can do to improve your chances. Here’s a primer if you want to try haggling.

Shut up

Many people feel compelled to fill every moment with talk. When you’re haggling, though, it can work in your favor to just shut up. Ask for what you want and then let the other person think it over and respond. The more you talk, the more unsure you seem and the more likely you are to reveal something (like desperation or desire) that the seller can use to jack the price higher. Be quiet and see what’s offered before you speak again.

Be willing to walk away

This is crucial. If you want the item so badly that you’ll buy it regardless, the seller has no reason to work with you. You have to be willing to walk and either do without or buy it elsewhere.

Don’t worry about what others think

Many people think haggling is embarrassing. Get over it. There’s nothing wrong in asking for a better price and unless you make a fool of yourself in anger, nothing to be ashamed of. Who cares what everyone else thinks?

Be armed with prices from competitors

It helps if you can tell the seller that so-and-so up the street has the exact same item for ten dollars less. This makes them more inclined to at least match if not beat that price. Also make certain that the items are identical. If they’re not, your seller can refuse to deal on the grounds that the item at the other place isn’t exactly the same.

Aim for a fair deal for both of you

You want a great price, but the best deals are those that result in a great price for you and a profit for the seller. If you’re trying to cheat the seller out of his profit, he has no reason to work with you. Aim for fairness so that you both get what you want.

Know where you will likely have the best success

Many chain stores do not have the authority to change prices unless the item is damaged or defective in some way. Prices are set at the corporate office and that’s that. You’re likely wasting your time to try and haggle at the big box stores, unless you’re aiming for a price reduction on a floor model or ding and dent item. Locally owned stores and services are likely to be more receptive to haggling since they set their own prices and rules.

Know your buy price

Go into the haggle knowing the price that will get you to buy and then buy the item if the seller matches it. You’ll only waste time and anger the seller if you keep trying to lower the price beyond a comfortable point. Know what would make a great deal for you and what would be a so-so deal that you would still buy. Aim for the great deal but if you’re offered the so-so deal, take it.

Cash might get you a better deal

Businesses like cash. There are no transaction fees and no chances of bounced checks. As a result, you can sometimes score better prices if you’re offering cash on the spot.

If the price is fixed, haggle for extras

If the seller won’t budge on the price, see if you can get some extras thrown in for free like an accessories package or upgrade. These can be worthwhile if they are things you need or want in addition to the base product.

Don’t be a jerk

Whatever you do, don’t get angry, yell at anyone, call anyone names, or try to intimidate a seller. Not only do you look like an idiot, you’ll only anger your seller and cut off any chance of them working with you. You’ll be lucky if they don’t call the cops on you. Be polite and kind. Even if the seller won’t work with you, thank them for their time and leave quietly.

Haggling isn’t illegal or even embarrassing if done politely and well. You might not always succeed, but the times that you are successful can save you some serious money.

What Traveling While Broke Taught Me About Finance

May 9, 2011 By Jennifer Derrick Leave a Comment

When I was younger I traveled extensively on very little money. I still travel frequently, but these days I have a little more money and I prefer more comfortable experiences. (It’s just not as comfortable to sleep on the floor or in a tent as it was when I was twenty.) Some of the best travel experiences I ever had came from traveling on almost no money. At the time it’s just the way things were, but I now realize that I was really learning a lot of financial lessons. Here are my top ten:

That the rest of the world doesn’t live like we do: This is the biggest lesson I learned. When you travel, even if you stay in your own country, you are exposed to different ways of life. You learn that what is comfortable in one area is considered luxurious in others. You learn that there are many areas that do not live with the consumerism that is rampant in the U.S. It’s an eye opener to see how many different ways there are to live and how many different income levels there are. When you stay only in your tiny neighborhood it’s easy to think that that’s the way the rest of the world does or should live, which just isn’t true.

That you can have fun without spending a fortune: Traveling with little money opens your eyes to all of the free and low cost things there are to do to have fun. When you have no other choice, you start to see how much fun can be had by taking a Frisbee and a sandwich to the park, or how many places offer free or low cost admission. It’s a lesson I’ve carried into my every day life.

How to haggle: Haggling isn’t commonplace in the U.S., but it is in many other countries. Once I learned that haggling was acceptable, I learned how to do it well. My first attempts were laughable, but I mastered the art of creating a deal that will work for the seller and for me. It’s come in handy in my daily life when buying a car or other big ticket items, or visiting flea markets or yard sales.

Always check your change: I never used to pay much attention to the change I received in stores. I always assumed it was right. But in a foreign country, where you don’t readily understand the currency, you quickly learn to check to avoid getting ripped off. Some businesses intentionally cheat tourists, knowing they won’t bother to count and understand the change they’re given. I always check my change now and more than once I’ve caught some significant mistakes.

Keep your money safe at all times: I used to be kind of lax about keeping my money and my purse safe. Travel taught me otherwise. I had my purse stolen once and my room broken into another time. From those experiences I learned to not leave money in the room (I carry a money belt) and to keep my purse strapped to myself or another object at all times.

That time and experience is worth more than money: When I travel I focus more on what I’m doing and where I am than money. I realized early on that if I had to choose between money and more travel time, I’d choose the time. It kept me from spending too much (meaning I’d have to go home sooner). I’d much rather focus on experiences and personal time than money. As a result, I’m always careful with money so I don’t have to work all the time just to pay the bills.

Live simply: When you have to carry your belongings on your back, you realize you don’t need nearly as much as you think you do. I try to keep my “stuff” accumulation to a minimum. I may not have to carry it every day, but I still have to deal with it and the less I have, the less I have to deal with.

Budgeting: Traveling with little money forces you to create a budget and then live within it. You have to determine what’s most important (food, shelter, and money to eventually get home) and pay those first. Other things can come out of what’s left. It’s a smaller scale than a household budget, but once I got older I realized I already had a firm budgeting foundation from living on the road.

Generosity reaps rewards: I didn’t always have a lot of money to be generous with, but when I was able to reward good service I did. It always paid dividends for me. If I couldn’t give money, I would give my hosts my time by doing chores, babysitting, or teaching them English. To this day I try to be generous with both time and money.

There are more options out there than you think: I used to have a very limited conception of the options available for work, housing, and food. But living on the road taught me to have a more open mind and to realize that I didn’t have to be pigeonholed into the life I was raised in. I learned that I was free to create a different type of life that fit me better because I saw people doing it all over the world.

I also learned a lot of other useful tidbits like how to convert exchange rates in my head. When I’m not on the road this makes me fun at parties. During all of my travels I never really thought about the money lessons I was learning. I just enjoyed myself. But looking back I can see that I was laying the foundation for a good financial life. Traveling gave me an appreciation for the way life is in the rest of the world and it taught me how to make do on what I had on hand.

Haggling For Bargains

February 8, 2009 By Jennifer Touchette 2 Comments

Please consider the idea of haggling: a buyer negotiating with a seller to get a lower price. It sounds like a great way to save money. Why am I not doing it?

I believe that like other consumers, haggling just isn’t on my radar:

I pay what I see on the price tag without question.
My first notion of haggling reminds me of buying a vehicle. Yuck!
I am uncomfortable asking for a discount.
Finally, it simply hasn’t occurred to me to apply haggling to non-big ticket items.

I love the idea of haggling, but I am way out of my comfort zone. My reluctance to ruffle feathers is one of the reasons – according to some financial experts – that many women often pay more for goods and services than men do.

In addition, I don’t have a lot of experience with haggling. My experiences are limited to negotiating for goods in a street market in Mexico and bargaining for a futon at a garage sale. That’s it. I have a lot to learn. On the other hand, the present financial climate seems like a perfect time to start. There’s plenty of inventory that sellers need to move, so why not ask for a bargain?

Bowing to experience, I asked friends and family about their haggling encounters.

Research: One friend needed a good office chair. She sits for long hours editing manuscripts and needs something with lots of support. After researching on the Internet, she had created a list of several chairs she wanted to try. She took her research to the field, visited stores and sat in many chairs.

Finally, she found the chair she wanted at a big office supply store. She had an ace in her pocket because she knew the online price was cheaper than the store’s price. So she offered to pay the online price, which was 20% less. After a bit of hemming and hawing, the salesperson agreed to let the chair go for the online price. My friend was amazed. “I thought,