By Joan Lee
on April 18, 2024
Read in 1 min

A key part of any financial plan should be finding ways to save money. There are many money-saving techniques. One of them is negotiating.
You don't always have to pay for an item's full price. The truth is that many times you can save quite a bit of money simply by asking for a discount.

Major purchases

Anytime you are making a major purchase, you should definitely try to negotiate for a better price. Especially when the price listed is padded with the expectation that the purchaser will want to negotiate. It has been documented that some furniture retailers can build in more than a 200% mark up. This means it can definitely pay to ask for a discount. 

One of the best negotiating techniques is shopping around and seeing what else is available. Being able to demonstrate that a similar house is selling for thousands of dollars less or that the exact make and model of car you want can be purchased elsewhere for less is the type of leverage you need to get a great deal. A simple internet search can provide you with all the information required to negotiate a deal that saves you money.

Ask to match an offer

Shopping around also works as a negotiating tactic for products and services you are currently using. Services like cable, internet, cell phones and even credit cards are often willing to drop their price. All you have to do is ask them to match an offer from a rival company.  

See other alternatives

The same concept applies if you are renting a home or apartment. As a reliable rent-paying tenant, the rental company may prefer to give you a discount on your rent. It may be risky to take their chances with a new tenant who may not be as reliable as you.

Don't worry if your request is rejected. Initiating the cancellation process will lead to an offer that is better than the terms you currently have. 

Because you have nothing to lose and everything to gain, negotiating is a technique that always worth a shot. Even if you find yourself paying full price consider other alternatives. You can ask for other items of value that can reduce your costs. Some may be free delivery or an extended term of service at the same price. Doing your research will make it easier to decide what choices to make.

By doing this you will be able to know if you are getting a good deal or if you should take your business elsewhere. 

Reference:

“Cheat Sheet: Retail Markup on Common Items.” Wise Bread, https://www.wisebread.com/cheat-sheet-retail-markup-on-common-items.

This is not for legal or financial advice. Please consult a legal or financial advisor for your specific situation.