How to negotiate for anything
Julia Beck regularly visits the same salon for a blowout of her hair. When the economy tightened, she didn’t want to lose this small luxury but needed a break on the price.
She asked the salon: “What if I agreed to get my hair done on a weekly basis. Do you think I could get a better rate?” The answer: a 20% discount on the price.
Beck and consumers like her have discovered that you can negotiate a better price for just about any product or service. “Your cable bill, cellphone bill, credit card interest rate and even your rent or student loan payments, these are things that are often negotiable, especially now,” says Ramit Sethi, the author of “I Will Teach You to Be Rich.”
Most people are afraid of haggling and mistakenly think that extroverted, loud personalities are better at talking sellers into a good deal. In fact, anyone can master negotiation skills. It’s not an inborn talent, just learned behavior and a dollop of courage.
You simply need to ask. But make it an open-ended question rather than one that might yield an abrupt yes or no response. A common mistake is to ask, “Do you have flexibility?” says Kwame Christian, director of the American Negotiation Institute. Instead, ask: “What flexibility do you have?” This sets the conversation off on the right foot — with the assumption that there is always some wiggle room.
You’ll find out just how much room there is by listening more and talking less. In fact, aim to talk only about a third of the time. That lets the other person reveal more information that you can use to drive a bargain. Plus, by keeping mum, you’re less likely to show your cards or make a mistake.
If possible, when you negotiate, emphasize your long-standing tenure as a customer and ask about the options for lower fees, better rates or improved terms.
You can’t negotiate a good deal if you don’t know what it is. Before negotiating, research the market conditions and prices. And know how high you’re willing to go before you walk away.
Products with a large profit margin and short shelf life usually have more flexibility with pricing. Think of seasonal items, perishables and consumer electronics that are quickly updated and made obsolete. To bring down the price, it helps to know which extras you can live without. Or, you might offer to buy a large volume in exchange for a per-unit discount.
The best negotiators stand their ground, so practice saying no. For highstakes negotiations, such as a job offer or salary increase, it helps to rehearse the entire conversation with a friend or family member.
The stereotypical negotiation involves kicking the tires of a used car and finding product flaws. This is a mistake, experts say. People don’t want to do business with a sourpuss. So, introduce yourself by name and ask the name of the clerk. In fact, building on relationships can put cash in your pocket. Studies shows when people do business with somebody they like, they’re more inclined to discount the price.