Your ability to negotiate affects almost every part of your life.
You started to negotiate from birth, in some form or fashion. You started your negotiation skill with your parents (Change my diaper, give me a bottle of milk and I'll stop crying).
We negotiate through life, whether we realize it or not. We negotiate to for what we want and need each day.
However, when it comes to getting the lowest prices on goods and services, most people dread negotiating. Or at best they're ineffective, awkward or uncomfortable doing it.
The purpose of this chapter is to show you simple ways to negotiate with more confidence and authority.
Contrary to common belief, negotiate is an art that's easy to learn. This chapter explores the basic techniques, principles and shortcuts used to negotiate almost anything and get the lowest possible prices.
To truly live better on less money, it's essential that you at least know the basics of good negotiation. Because if for no other reason than to know how to protect yourself against other good negotiators.
Like it or not, every minute of everyday with every human contact, we're negotiating or positioning ourselves for future negotiations.
Whether you're a husband or wife, employee or employer, salesperson or client, negotiation is a part of life.
You can do your own experiment. Walk by the average school yard and listen to the children negotiating or positioning themselves for future negotiations.
Watch who gets to play with what, and who gets to play on whose team. Watch their negotiations over toys, balls or even swings.
Yes, negotiation is a natural part of life from cradle to grave. Just
understanding that a negotiation situation is always about to happen will allow you to better position yourself in advance.
This chapter will help you negotiate from a position of strength rather weakness or desperation. No matter what your present situation. You'll learn when to stick to your guns, when to walk away and when to compromise.
Read on to learn to learn 22 secrets to negotiate with more confidence and get more bargains.
1. To become a confident negotiator you must do your homework ahead of time.
What's the items worth? How many places have them for sale? Is it a high, medium or low demand product or service? The more you know ahead of time, the better you can negotiate.
2. When a negotiation is successful, both sides win. All negotiation is give and take. A win-win situation should be the result with both sides at least getting what they need.
3. Know that negotiation is not an event that happens, it's a process of steps that lead to success. Paying attention to the simple but effective steps is the difference between getting a bargain price and overpaying for a product or service.
4. To negotiate effectively, you must be willing to walk away if the price or terms is too high. If you have to have a product or service no matter what, you're negotiation power shrinks drastically.
5. Most salespeople worth their salt can spot a desperate buyer a mile away. So avoid appearing too desperate, anxious or needy for the product or service they're selling. Otherwise prepare yourself to pay top dollar, in most cases.
6. Keep in mind an important part of negotiation is also knowing when to stop.
Getting too greedy can often cause you to lose an otherwise good deal.
7. Before you negotiate, check out
Shopping Comparison Site, read through consumer magazines and buyer guides, most of which are available in your city or county library. This will add to your confidence.
8. Lack of advanced preparation is one of the biggest mistakes most people make when trying to negotiate.
Remember, the salesperson you're trying to negotiate with is usually very knowledgeable about the product or service.
You should at least have basic knowledge about their product or service as well as their competitors, if any.
9. Another tip is to know the other sides minimum needs. What's the least amount they'll take or pay? The more knowledge you have about their minimum needs the better your ability to negotiate with confidence.
10. To negotiate from a position of power know what the top selling models are, if it's a product.
Know the largest profits makers. What new models are on the horizon? If you know this you know they want to get rid of the old models to make room for the new models. This is an opportunity for a bargain.
11. Generally speaking, the higher the price of a product or service the more negotiable the price is. Also the greater the quantity of an item, the better your chances the price is negotiable.
12. Price is not the only factor to consider when negotiating. If the other party is firm on the price you can negotiate size, color, quantity, service, warranty, lower down payment and others.
13. Always make sure the person you're negotiating with has the authority to give you a lower price. If they're not a management or supervisory person they probably don't have the authority to lower the price.
So, ask for a manager if the person you're negotiating with balks at your negotiation offers.
14. Compromising in a negotiation may be necessary to get what you need. Always be willing to compromise if it means you'll reach your goal.
The trick is to know when to give, how much to give and what to expect in return. This comes through research, preparation and experience - the more you do it the better you'll get.
15. Be aware of the power of the deadline (when some action must happen). Avoid exposing your deadline if you have one. That's why the top negotiators will always try to find out when you have to have that car, home or refrigerator.
This will help to give them a negotiating edge if they know you have to buy now.
16. Know how and when to make others compete for your business. You can easily do this by quietly implying or name-dropping the sellers competition.
Mention a price their competition is offering (if it's lower and if it's true).
Or mention an extra service, benefit or guarantee, etc.
17. Use the powerful "if" question to lower the price you're quoted. For example, "if" I buy 4 instead of 1 how much of discount can I get? "If" if make a larger down payment what discount can I get? The sellers answer to similar questions will tell you if he or she is willing to negotiate.
18. Salespeople (and their managers) secretly hate to lose sales where they've invested time. So make time work for you.
The more time and effort a salesperson has invested in you. For example, explaining or demonstrating the product or service, the better position you'll be in to negotiate later. This is where time is money and savings for you, if you know how to use it.
19. Want to know a quick way to test the knowledge and honesty of the person you're negotiating with?
Ask them a few questions you know the answers to. But don't be too quick to show your extensive knowledge. Have a can you help me attitude.
20. Always have options. The more options you have the better and more effective your negotiations. Always have a plan B and even a plan C if possible. This can add to your negotiation confidence.
21. Take a risk. Practice asking for a little more than you think they'll give you.
Be willing to ask for extra discounts, price breaks or perks. If you don't ask you usually won't get one.
Remember: all they can do is say no. But one yes can save you hundreds or maybe thousands of dollars.
22. Be intelligently persistent and tenacious. Don't give up too easily. The best negotiators are the most persistent and tenacious. The lazy, the faint of heart or the hesitant seldom, if ever pay the lowest price.
Now that you know the basics of negotiation, get out there and start practicing.
The more you practice in the little things the better you'll prepare yourself for the bigger ones - and the bigger savings.
For example, start with your credit card company. If you're paying your bills on time ask for a lower interest rate.
Go to your local flea market or swap meet, that's an atmosphere where everyone expects you to negotiate.
You can also practice going to garage sales, that's another place where negotiation is almost always expected. And have fun while you're saving money.