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Learn to Haggle and Never Pay Full Price
Years and years ago, long before I ever dreamed of Cheapskates, I learned the value of haggling over a price, of the opportunity to never pay list or full price for anything. I come from a long line of hagglers, something that until recently, has been quite abhorrent to most Australians. For some reason the thought of questioning a price, of asking for a better deal, scares many people.
They are embarrassed by the thought of talking about money. In Australia talking about money, investments, salaries, saving and yes, even living the Cheapskates way, are generally taboo subjects. I don't know why - we all need to know how to invest and save wisely, how to live the best life we can below our means, to live life debt free, cashed up and laughing.
And then there are the rich. The wealthy. And by that I mean the really wealthy - the Warren Buffets of the world. Do you think they're embarrassed to talk about money? To save every cent they can on everything they buy? Of course not - that's a part of the reason they're wealthy! They know the value of a dollar and know how to stretch it. They're not afraid to negotiate, to haggle, over the price of what they want, be it a new car, a house or a new business.
So have you ever envied someone when they tell you, usually in a whisper, that they were able to negotiate a great deal, and wondered how they do it? It may have been for a large item, such as a car or a house, or something smaller like a holiday or washing machine.
Then there are those "lucky" people who are always able to get something knocked off the price of whatever it is they’re buying - whether it's at a trash'n'treasure market or a department store.
They've long ago passed the embarrassment and have become expert hagglers.
You wouldn't dream of paying the asking price for a new home, or the price written on the windscreen of that car you've had your eye on.
You'd make an offer. And the seller would come back with a counter offer. And so the haggling begins. Offers and counteroffers go back and forth until a price is settled on or one of you choose to stop negotiations. That's all there is to it.
In theory, everything is negotiable. The price on the sticker is just the asking price, the price the seller is hoping to get. You've done your research and you know the price you are prepared to pay. You can haggle over orthodontia – even on the price of music lessons and lawn mowing. It is almost always appropriate to haggle and nothing to be ashamed of. You are just asking a simple question.
The tricks to haggling apply to all situations. You probably won’t get very far at the supermarket, but always haggle at markets and when buying big ticket items.
Here are just a few of the things I've haggled over:
Firstly, always, always be polite. Everyone has the right to make a living and charge a price of their determining for their goods or services. It is up to you to decide whether that price is fair and reasonable, and affordable, or whether you are prepared to accept the item or service as is but for a lower price.
Secondly, be prepared to haggle. Find out who has the power to do deals - in department stores and car yards it's often not the sales clerk you see on the floor, and then start a conversation; build a rapport with the seller. Show you are serious about getting a deal, not just wasting time. If you are a regular customer, let them know. And be prepared to buy if the seller meets your price.
Make sure it’s worth everyone’s effort. The bigger the ticket price, the more likely it is negotiable and worth everyone’s time and effort. Spending 15 minutes to save $1 on a $10 item isn’t really worth it. On the other hand, 15 minutes negotiating to save $300 on a $1,200 bracelet is.
Use your bargaining power. Start with the question "What's your best price?" and then stop talking. Put the onus back on the salesperson to do what he must to make the sale.
Flash cash. If you are paying cash ask how much for cash and wait for the response. Then ask for seniors discount if it applies, or if they would throw in delivery, installation, etc.
Value Add. Ask how much if you buy another item e.g. a lounge suite and an LCD TV; a washing machine and a dryer; a dress and a pair of earrings etc.
Collect prices. Always get the price written on the back of a business card. It helps if you can pull out a written price when you are haggling for a better deal at another store and you'll know exactly which salesperson to go back to when you buy, with proof of their price in your hands.
And lastly, be prepared to walk away. The worst thing that can happen is that particular retailer won't discount. All you have to do then is say “thanks for your time” and walk away.
Haggling, negotiating, bargaining - call it what you like - is something anyone can do and with a little practice you can become an expert - and never pay full price again!
They are embarrassed by the thought of talking about money. In Australia talking about money, investments, salaries, saving and yes, even living the Cheapskates way, are generally taboo subjects. I don't know why - we all need to know how to invest and save wisely, how to live the best life we can below our means, to live life debt free, cashed up and laughing.
And then there are the rich. The wealthy. And by that I mean the really wealthy - the Warren Buffets of the world. Do you think they're embarrassed to talk about money? To save every cent they can on everything they buy? Of course not - that's a part of the reason they're wealthy! They know the value of a dollar and know how to stretch it. They're not afraid to negotiate, to haggle, over the price of what they want, be it a new car, a house or a new business.
So have you ever envied someone when they tell you, usually in a whisper, that they were able to negotiate a great deal, and wondered how they do it? It may have been for a large item, such as a car or a house, or something smaller like a holiday or washing machine.
Then there are those "lucky" people who are always able to get something knocked off the price of whatever it is they’re buying - whether it's at a trash'n'treasure market or a department store.
They've long ago passed the embarrassment and have become expert hagglers.
You wouldn't dream of paying the asking price for a new home, or the price written on the windscreen of that car you've had your eye on.
You'd make an offer. And the seller would come back with a counter offer. And so the haggling begins. Offers and counteroffers go back and forth until a price is settled on or one of you choose to stop negotiations. That's all there is to it.
In theory, everything is negotiable. The price on the sticker is just the asking price, the price the seller is hoping to get. You've done your research and you know the price you are prepared to pay. You can haggle over orthodontia – even on the price of music lessons and lawn mowing. It is almost always appropriate to haggle and nothing to be ashamed of. You are just asking a simple question.
The tricks to haggling apply to all situations. You probably won’t get very far at the supermarket, but always haggle at markets and when buying big ticket items.
Here are just a few of the things I've haggled over:
- Our house
- Our cars
- The acccessories and mods for our 4WD
- Our lounge suite
- New carpeting
- Bulk lots of meat
- Bulk veggies from the market
- Accommodation costs for holidays
- Insurances
- Electricity rates
- Gas rates
- Water rates - didn't have any luck, but you may be better at haggling for a better deal on water than I am!
- Mobile phone charges
- Car parts
- Computers and computer parts
- Washing machines
- Fridges
- Car parts
- Car repairs
- Plumbing repairs
- Tyres
- A new freezer
- Firewood
Firstly, always, always be polite. Everyone has the right to make a living and charge a price of their determining for their goods or services. It is up to you to decide whether that price is fair and reasonable, and affordable, or whether you are prepared to accept the item or service as is but for a lower price.
Secondly, be prepared to haggle. Find out who has the power to do deals - in department stores and car yards it's often not the sales clerk you see on the floor, and then start a conversation; build a rapport with the seller. Show you are serious about getting a deal, not just wasting time. If you are a regular customer, let them know. And be prepared to buy if the seller meets your price.
Make sure it’s worth everyone’s effort. The bigger the ticket price, the more likely it is negotiable and worth everyone’s time and effort. Spending 15 minutes to save $1 on a $10 item isn’t really worth it. On the other hand, 15 minutes negotiating to save $300 on a $1,200 bracelet is.
Use your bargaining power. Start with the question "What's your best price?" and then stop talking. Put the onus back on the salesperson to do what he must to make the sale.
Flash cash. If you are paying cash ask how much for cash and wait for the response. Then ask for seniors discount if it applies, or if they would throw in delivery, installation, etc.
Value Add. Ask how much if you buy another item e.g. a lounge suite and an LCD TV; a washing machine and a dryer; a dress and a pair of earrings etc.
Collect prices. Always get the price written on the back of a business card. It helps if you can pull out a written price when you are haggling for a better deal at another store and you'll know exactly which salesperson to go back to when you buy, with proof of their price in your hands.
And lastly, be prepared to walk away. The worst thing that can happen is that particular retailer won't discount. All you have to do then is say “thanks for your time” and walk away.
Haggling, negotiating, bargaining - call it what you like - is something anyone can do and with a little practice you can become an expert - and never pay full price again!
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