Negotiating for lower prices on your purchases

Do you think that negotiating is just for big-ticket items, or in the second-hand economy? Not so. If you have the right mindset, you can negotiate your way down for numerous purchases.

Here are some handy negotiation tips.

Price anchor

The theory behind price anchoring is to make an ultra-low offer to start. Don’t let the salesperson make the first offer. Typically, when you negotiate, you start low, the seller starts high and you meet somewhere in the middle. If you don’t start low enough, the middle ground may be higher than what you could potentially be paying.

Set the framework for negotiation by anchoring the price by the bottom figure.

How much does the product or service cost elsewhere?

Is the product being offered for less by competitors? Many retailers will happily match competitor’s prices and as an extra incentive, will beat their competitors by 5 or 10 percent to reward customer loyalty.

Is it a seasonal/cyclical item?

If you know that the seller is very motivated to move an item because it is coming to the end of a season and/or they need to make way for other merchandise, you have even more negotiation power. They will be willing to let items go for less.

Ask open-ended questions

Sellers will be less likely to say no to your proposition if you word it through open-ended questions. Open-ended questions can also help you to get more information about the product or service as well as the seller’s motivation to sell.

Be prepared to walk away

With all the retail competition out there, retailers are interested in retaining customers as much as they are in getting new ones. If they’ve got a customer willing to buy, but also willing to walk away, they will be more motivated to meet your price demands just to keep you in the store.

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