Wiggle Room Abounds! When in Doubt, Ask for a Lower Price

The November issue of Consumer Reports shares the findings of an important study: 90% of the people who tried to negotiate a better deal got it – whether they were shopping for furniture, electronics, appliances, or just trying to make their medical bills more affordable!

You might think that the survey was of savvy Consumer Reports readers, and that explains their incredible success rate. You’d be wrong. It was a national, representative survey of 2,167 U.S. households. As someone who has long encouraged dickering, I was delighted to see that 61% of the respondents had bargained for something, at least once during the last three years.

People who negotiated for a lower price on furniture did the best – 94% were successful at getting a better deal at least once. Almost as many got their medical bills lowered and bought cheaper home electronics products, 93% and 92%, respectively. So if you invariably go for the ticket price or whatever the doctor’s bill says, you may be spending a lot more than you have to, compared to people willing to ask a few questions, some of the time.

If you’re looking for a good place to start to dicker a bit, consider floor and demo models, since 65% of people had tried to get lower prices on those items  – with a 91% success rate! Close behind were the 57% of people who contacted their lenders about fees. If you haven’t called your credit card issuer yet to get a lower interest rate or a nuisance fee removed, consider this: 87 percent of people who bargained with their lenders over fees were successful. Why not give it a try?

Next time you shop, find a way to negotiate, whether you’re buying furniture, home electronics, appliances (both small and large), floor and demo models, bank or credit card fees, jewelry, cell phone plans, antiques and collectibles. The worst thing that can happen is the merchant will say, “No!” We’ve all dealt with much more difficult rejections in life, so don’t let that hold you back.

Consumer Reports' first piece of advice is it’s “How to Haggle” section is the most important: Try not to by shy. “You won't be forcing merchants to negotiate: If they give you a bargain, it's because they can afford it.” Click here for other tips from the magazine.

Hate to Bargain?
If you just hate to haggle, try to “hondle,” instead. This Yiddish word suggests a gentler, kinder, more humorous approach to getting what you want for less. “Hondling” can turn even the most timid into stress-free super-savers. Here are some of my top hondling tips, which I share in my "Painless Penny Pinching" series for Credit.com:

• Ask for help. People like to help, so try something like, “Money’s so tight these days, can you help me out on the price?” However you put it, say it with a smile.
• Play “Let’s Make a Deal!” For a chuckle, if not a special combo price, say  “Let’s make a deal,” when you want to buy a few items at once.
• Have patience for the process. You won’t get the best price if you’re in a hurry. “Hondling” takes time.
• Know when to walk. Can’t get the price down? Start to stroll. Hopefully, the salesperson will follow ... and meet your price. If not, think of all the money you just saved!

Have you gotten a lower price on something you really wanted? Please share your bargaining successes with us!

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Comments

[Jim]

Always ask for the lower price on any big ticket thing. The markup on these things is high and people rarely ask for a discount because if it say "sale" they think they are already getting a good deal. Cars, appliances, furniture prices can always be negotiated to something lower. If the person you are working with doesn't budge, start to walk away and they may give chase. You can always buy it somewhere else.

[Gerri Detweiler]

You're right Nancy -- it often does work. I remember negotiating a deal on my wedding dress because the floor sample fit me perfectly and it didn't have to be ordered. The sales clerk acted like I had insulted her, but I got $300 off the dress. Generally, I think Americans have lost the art of haggling but there are definitely times where it works!