Savvy negotiators know that politeness, friendliness, and a smile are harder to resist than tough talk. "A my-way-or-the-highway approach limits you, because if you then reduce your demands, you run the risk of losing face," says Steven Cohen, president of Massachusetts-based Negotiation Skills, which teaches corporate clients how to sharpen their bargaining techniques. "Negotiation isn't a competitive sport." Here are other tips for smart bargaining:
Assume everything is fair game. Retailers drop prices all the time and call it a sale. "It's not in the seller's best interest to charge one price to all customers," says Stephen Hoch, a marketing professor at the Wharton School of the University of Pennsylvania. "You charge different prices to different people based on their willingness to pay. As long as you sell something for more than your cost, you are making a profit."
Don't be intimidated by a title. Hoch says that many people are reluctant to confront doctors or lawyers. But John Santa, M.D., director of the Consumer Reports Health Ratings Center, says that almost everyone in health care—whether physicians, hospitals, labs, or imaging departments—will eventually accept less if you dispute an out-of-pocket charge. That said, he adds, they'll try to wait you out, make you feel responsible, and drown you in information. Abbie Leibowitz, M.D., co-founder of Health Advocate, which specializes in health care advocacy and assistance, says his company can often cut charges in half for uninsured patients.
Be willing to bargain for big bucks. You can't win if you don't try. A 23-year-old college grad (he didn't want his name used) was accepted into several law schools and was offered generous scholarships by some. As his commitment deadline loomed, two of the schools increased their offers, but his first choice didn't. He approached the admissions officers of his top pick, told them that another school had upped the ante, and asked for more ($40,000 a year), knowing it would never agree to that amount. The school, which had initially offered $30,000, countered with $33,000, and they sealed the deal.
Give sellers a reason to negotiate. If you're a loyal customer, say so. If you're at a mom-and-pop store because you like to shop locally, say that. Tell the car dealer if you intend to bring your vehicle back for servicing. Alice Osner of Denver, Colo., forgot to make a credit-card payment. She contacted customer service to acknowledge the oversight, pointed out her track record of on-time payments, apologized, and asked the rep to waive the $25 penalty plus interest. He did.
Ask open-ended questions. It's easy to be turned down if you ask a yes-or-no question. Say you want a 60-inch television but can afford only a 52-inch model. Cohen suggests: "I've got the perfect space for a 60-inch TV, but the financial issue is a challenge. How can you can help me?"
See whether the seller is anxious. Anxious sellers might include someone who has bought a new house but hasn't sold the old one or a car dealer with a car that has sat on the lot for months. In cultures where bargaining is common, there's a price in the morning, when hope springs eternal, and another that kicks in close to closing, when reality sets in.
Decide on a fair price. Research the cost of any product before buying, and use it to determine what you're willing to pay. Print out or take screen shots of website pages or request written quotes from competitors. Call the store to confirm that it will match the lowest price you've found. Ask about a refund of the difference if there's a drop within a reasonable period of time. If you can't get a discount, ask about free shipping, delivery, or installation.
Be willing to walk away. When it's expensive to attract new customers, companies may work hard to retain existing ones. Experience taught Susan Glasspiegel of Simsbury, Conn., that if she didn't renew her contract with SiriusXM satellite radio, the company would bombard her with offers to return at a lower, albeit temporary, rate. The price of the service was $195 per year, but Glasspiegel had seen promotions for a six-month subscription for $25. When she mentioned those better offers to a Sirius rep, her call was bumped up to several supervisors. Initially, each said that no special deals were available for renewing customers, but she persisted, and the company relented, offering a one-year, $99 contract.
Show your knowledge. If you're versed in Federal-style furniture, are geeky about gaming systems, or know the ins and outs of foreign coins, share that expertise and curiosity with the seller. You'll come across as a qualified buyer.
Stay mum. Because it creates awkwardness, silence can be golden. Cohen advises remaining poker-faced after sellers give you their initial proposition. "They'll wonder if they've offended you," he says. "They'll think, ‘Maybe what I said didn't sound appealing,' and they may repackage the offer into a more attractive one."
Find flaws. If you see a sweater with a smudge or a dishwasher with a ding, point it out. It's easier to negotiate with independent stores than with chains, says retail consultant Jack Abelson, and for private-label products than for big brands, because the seller can't return flawed products to their maker for credit.
Seek a discount for cash. That way, sellers won't need to pay transaction fees to a credit-card company.
Be discreet. Sellers may not want to make your great deal public.
