Let’s face it;we Brits are a fairly respectful bunch.
We don’t like to cause a fuss, and we certainly don’t want to be a bother to anyone. The only place we really see haggling is on the occasional episode of Bargain Hunt.However, these mild manners may well be hurting our pockets.
These 6 steps aim to equip you with a few tools to make the most of your spending money with this quick guide to haggling.
Who Has The Power?
In every deal there will be one person who has the upper hand. One of the first things you should look to do, if you are going to try to talk them down on price, is to establish whether you have the power, or whether the vendor has the power.
Smaller businesses may be willing to offer more discount as they have to work harder for business than the larger companies.This can vary, especially with something like cars as main dealerships for large car manufacturers often sell new cars at cost price, or sometimes make a loss just to get your business.
Be Ready To Walk Away
Being too eager about a product, and then asking a salesperson to heavily discount it will rarely work. It is often obvious you are bluffing, and it will not make the salesmen work as hard to get your business.They will have to work much harder to convince you to buy if you are more than ready to leave empty handed.It may help if you take a friend with you to do the negotiations for you. When you are interested in something you are far more likely to accept what is offered, whereas someone taking a less emotionally involved and more critical stance on a subject is far more likely to help you save more money and work the salesperson harder.
Timing Is Everything
One tip that is often offered is – go at the end of the month. The reason for this is mainly due to targets. Most sales teams will have targets that they want to fill, either to reach their bonus or to simply meet their targets. This means they may be able to make larger discounts at the end of the month in order to ensure that they reach thesegoals.
Do Your Research
You stand a far better chance of getting a better deal if you have done your research beforehand.Check the competitor’s prices. If they are cheaper, see if the dealer you are thinking of approaching has a price match guarantee.
These sorts of initiatives have been used by Supermarkets and high-street stores such as John Lewis, with their “never knowingly undersold” slogan, so they may have filtered through to the business in question.
In your research you may find out some more helpful information that aids your decision, such as details of an upcoming sale. If you are looking at buying a car, news on the release of new models will also signify when you can expect to see price reductions on older models. These are all areas that can help you to find the lowest price possible.
Some products will have their own seasonal price differences. The most obvious example is food. However, even the most fundamental bargain hunters are unlikely to barter over the price of a meal. There are times that demand will be lower for different types of products.
One excellent example is holiday prices. During the height of the summer holidays the prices will be high, but after this period bookings will be down and vendors will have a lot more flexibility with price.
Go When It Is Quiet
If you are able to, the best time to try and buy will be when the sales room is quiet. A room full of customers to a salesman is like a fully stocked buffet, they can choose who to serve, because there is plenty of choice and they can change to someone else – another dish – at any time they want if they do not think they will make a sale from you.If the amount of customers is smaller, they will have to work with what they have got and make the most of their leads to fulfil their need for sales.
Jamie Smith writes finance related articles for a number of top finance related websites. He recently published a post titled How To Save On Fuel – check it out.