There’s nothing like executing some great negotiation strategies to really drive down the price of an item or bag yourself a free upgrade. The negotiation strategies shared here are used successfully every single day. The process is perhaps the most exciting part of shopping when you know how to do it effectively. And of course, knowing the best negotiation strategies can definitely improve your success. Luckily for you, this article will shine some light on the subject. It’s important to understand that many salesmen are given some leverage with their price to accommodate frugality and well thought out negotiation strategies, but of course, they don’t give up easily.
As somebody that often tries to haggle whenever I can, it’s not long before you come to know what works and what doesn’t. It’s common for somebody to feel rude about negotiating, but the truth is many traders and salesmen are open to it. Let’s cover some basic negotiation tips and techniques, and where you might use them.
Top Negotiation Strategies – 7 Tips
# 1 – Know the Value
If you know what you’re going to be haggling for, get yourself on the internet and find out how much it’s going for. After all, you may be walking into the most expensive dealer without even knowing it. Whilst online, don’t forget to print out any competitive prices that you find to see if you can get a local store to beat it.
In the event that you don’t know the true value of an item, start by offering 30% less than the asking price, this is a good starting point if you’re really unsure.
# 2 – Be Hesitant
Never let on that you’re keen to buy, always show hesitation. It’s pretty obvious, but body language can display eagerness. If a sales rep knows you’re already sold on the product, they’ll automatically have the upper hand in negotiation. You want to show that you’re in control at all times.
# 3 – Know What You Want
It used to happen to me all the time, I would go into a store half knowing what I was looking for and suddenly, I’m being offered all kinds of upgrades and higher end products that were supposedly “much better”. One time, when I was looking for a specific laptop it came to be the only unit left was a display model. Despite telling him I wouldn’t take it, the salesmen were trying their utmost persuasion skills to assure me it’s perfectly safe – it’s not.
Evidently, If you have done your research and you know exactly what you want, it’s much easier to avoid being talked out of it. Not only that, but not knowing what you want can seriously affect your negotiation strategies
# 4 – Build a Rapport
Building a rapport is a vital strategy. The first thing you should do is show that you’re open to friendly conversation. You can do this by talking briefly about the weather, or a local news story. Once you have “broken the ice” so to speak, it’s easier to talk on an informal level about the product or service you require.
One thing to keep in mind, is the sales rep also wants to maintain a good relationship in order to make the sale easier. When you feel there is an understanding, tell them you’re going to be honest, that you would like to make a deal but the price is slightly too high. Make it sound like they will be doing you a huge favour by taking down the price. The better your rapport building skills, the more sympathy you will gain and inevitably the more likely they’ll want to help you.
Building a rapport also makes it far easier to implement further negotiation strategies. It’s perhaps, the most essential part of haggling.
# 5 – Consult Your Partner
This is a technique that I have used time and time again with great success. It works by telling the sales representative you will first consult your partner on the price. This phone call doesn’t necessarily have to be real, although it would be easier if the sales representative is close by. The aim of the call is to express that you are interested in the item, but you’re given instructions not to buy it for the asking price as it’s too high.
Now, explain that you have agreed on a price with your partner and you are not able to go any higher than X amount. This works because the sales representative knows you really can’t move on the price. I would normally attempt this prior to some of the other negotiation strategies mentioned, otherwise it may become obvious what you are doing.
# 6 – Some Freebies
Sometimes, a discount can’t be offered and if you can’t move the price then always try to get more for you money. For example, when I purchased my laptop I couldn’t get it any cheaper as it was already a sale item. However, they were able to accommodate my request of throwing in a new mouse and USB stick. Asking for some free extras is an excellent negotiation strategy that can be used even after a discount is given, what have you got to lose?
# 7 – Walk Away
Knowing when to walk away is all part of haggling and often is the key to securing the price you want. When the price isn’t right, you must force yourself to walk away. If the sales representative was ever going to agree on your price, they will call you back. That’s it for the negotation strategies, but how about where to use them.
Remember, the more you use negotiation strategies, the better you will become at pulling them off. Start small by aiming for small savings, then work your way up to big discounts!
Where to Use Your Negotiation Strategies
Okay, so by now you might feel confident about how to go about haggling, but where can you use your new found skills? Here is my list of bartering goodness.
- Garage Sales
- Car Boot Sales
- Large Appliances
- Cars (New or Used)
- Gym Memberships
- Building Quotes
I hope you enjoyed my most favorable negotiation strategies and find use for them yourself
Feel free to have your say in the comments below.
Images from: blog.timesunion.com, examiner.com.