Tips for Negotiating a Better Deal

Do you know somebody who can negotiate a great deal on something regardless of what they are buying or where they are buying it? I have a family member who will negotiate the prices at department stores and grocery stores. She negotiated and received a great deal on patio furniture, canned peaches and more! Negotiating a bargain does not have to be as difficult as it seems. In some cases, it may even be fairly simple. Here are some things to keep in mind to help you negotiate a better price with confidence.

Show Them the Money

If you plan on purchasing a big ticket item, such as a car, boat or even a house, paying for it in cash is going to get you a long way when negotiating a better price. The majority of people finance these items and while they can often bring the asking price down a bit, they cannot bring it down as far as they would if they had the cash to pay for it upfront. There is just something about flashing the green that entices sellers to bring the price down. Maybe it is because they can put all that cash in their pocket the minute the deal is done, rather than waiting on the monthly payments. Maybe it's just that cash provides an emotional attachment that offers immediacy. If you can pay for an item in cash rather than financing it, use the wad of green to your advantage.

Have More Information Than the Seller

There is an idea that if both parties have equal information when negotiating a price, they will both have equal bargaining power. This does not really help you when trying to negotiate a price. Instead, when you have more information than the seller, you hold more negotiating power. As such, you have the opportunity to bring the price down even further. For instance, if you go into a negotiation for the price of a car and you know that a particular model has had problems with brakes, you can use that in your favor to bring the price of that model down.

Be Patient

If you seem anxious to buy something, that is not going to help you negotiate a lower price. As cliché as it may sound, never let the salesperson see your excitement about something. You should always be prepared to walk away from a deal if you are not getting a good price on it. Many times, buyers get emotionally attached to an item, such as a car or home, and that destroys their negotiating power. Just remember that there is always another deal around the corner if you pass up on one that does not meet your budget or price goals. The ability to say “no” in a negotiation gives you the upper hand in a deal.

Practice Negotiation Skills

There are many subtle things and not-so-subtle things you can do during a negotiation to be effective. For instance, when you say “no” to a price and just be silent afterwards, you put the seller on the spot and it is up to them to make the next move. Also, let the salesperson make the first offer. Never state a starting price. Many times the salesperson may start closer to your price when you do not even say a word. It also helps if you be reasonable with your expectations. You probably are not going to get a car for half the asking price or something crazy like that and it may even insult the salesperson if you suggest such a thing. Negotiations are best when both parties feel like they are winning so keep that in mind when looking for a bargain.

Look for Deals

Getting a good deal is about more than just knowing how to negotiate. It is also about knowing where to look. You can almost always find better deals when dealing with private sellers than you can when dealing with dealerships, department stores and places like that. Place like pawn shops, garage sales, repo lots, and auctions often offer better deals than you can find at businesses. They are usually more willing to negotiate with you, too. You can also look for deals in your local newspaper. Sellers who list ads in the newspaper are usually more willing to sell something at a great bargain especially if they have been trying to get rid of it for awhile.

There is nothing wrong with negotiating a better price. In fact, many places expect it. But knowing the skills needed to negotiate a win-win situation will help you get the price you want while being a fair an honest buyer.