Posted byCarla
Negotiating for products and services can help save you money.
The first time I found myself in a negotiation I was about 22 years old. My friend Deborah and I were in Ixtapa, Mexico. Locals were on the beach selling their wares and I wanted to buy these cute little wind chimes. A vendor wanted $5.00 apiece for them but I bargained him down to $1.00 each and bought several. While I felt great about my bargain, perhaps I felt a little guilty too. As I walked away I remember thinking the vendor must not like me or my ninja negotiation skills. In hindsight, he probably still did ok on the deal but I’m sure he would have liked for me to be more like other tourists on the beach.
Negotiating, while not as common in the U.S. for retail purchases, is still a valid option for getting the best possible price for many things we need to spend money on. You can negotiate with your bank, your cable company, insurance companies, and many other organizations for products and services, especially if companies have valid competitors in the marketplace. Commerce is highly competitive these days and you could and should take advantage of that. After all, it’s your hard-earned money you’re spending and you want to get the most bang for your buck.
Insurance Companies
You need insurance on your cars, your home, and possibly your business. Because of this, insurance companies usually have lower rates if you bundle say, your homeowners policy and your auto policy. Due to this, you can shop around to find the most favorable terms and prices. Revisit your rates against competitor rates yearly to determine if you are getting the best deal on your insurance plans. As an example, if you find that your rates have increased and you see that the rates from the competitor are lower don’t be shy…
Takeaway
Call your agent and request they lower your rates to be in line with the better deals you’re seeing elsewhere. If they can’t or won’t give you a better rate consider changing insurance companies to get that better deal.
Credit Card Companies
While I’d love to see you out of consumer debt completely I understand it is a thing for a lot of people. Credit card companies charge insane interest rates for giving you the privilege of spending their money. I would imagine that they would very much like for you to be indebted to them forever.
For a lot of people trying to get out of credit card debt feels very much like climbing a muddy hill in cement boots. You can do it, by the way, and when you reach the top of that hill you can fling your hands in the air and twirl around singing at the top of your lungs. It is freedom after all.
In the meantime take a look at your statements. Call your credit card companies and ask for a lower rate. Firstly, ask them to negotiate your balance down. Secondly, ask them to reverse late fees. Finally, ask them to do you a solid and help you out. Don’t be discouraged if the first person you talk to can’t or won’t help you. Call again, and again, and again.
Takeaway
Be persistent and I just bet you’ll get someone on the line who will help you negotiate either your rate or your balance down. If you don’t have success with these efforts consider looking into credit counseling. These folks are experts at negotiating your balances and rates down.
Cable TV and Internet Packages
Oh, the teaser rates! Those bargain rates that you get for the first year. These companies are counting on you not noticing your bill has doubled once the introductory rate period has passed. This is where you want to pay close attention to your bill. Heck, put a calendar reminder in your phone for next year to remind you they’re getting ready to stick it to you. Be ready.
Research the competitors and find out what their rates are. And when you see on your statement the price has increased, call your provider. Tell them what you know. Say, “XYZ Company is offering the same package for less than I’m paying. Will you please match it?” Again you may not have success with the first call. Call again, but seriously they really should honor your request. Otherwise, they’ll lose your business. Ask to speak with a customer retention specialist. If all else fails don’t be afraid to change companies.
My husband and I do it. You can too. Yeah, yeah, I know you don’t want to have to learn how to use a new remote. But it’s so worth it.
Banks
Hopefully, you have a good relationship with your bank. They want your business and will try hard to keep you happy. if you accidentally have an overdraft on your account and see you have a large overdraft fee it just feels like they’re adding insult to injury, right? But maybe, if you’ve been in good standing with them for a while they’ll help you out. I will simply call them and say, “I don’t want to pay that.” Or “This is really causing a hardship, can you please reverse that charge?” It’s worked for me many times and I want you to try it too if the occasion arises. You can also ask to negotiate your interest down on credit cards if you hold credit cards with your bank.
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Cars
The thought of going into a car dealership fills me with dread. I actually need a new car and am putting this one off. Car dealers are experts at separating us from our money. The price negotiating, unless you’re paying cash, has absolutely nothing to do with what you will ultimately pay for a car.
Pay cash if at all possible because if you don’t there will be a pause, a very long pause, while your salesperson goes into a closed office to discuss your terms with“the credit manager”.They’re wearing you down with the waiting. You want it over. Because you just want your car. They’re counting on you just agreeing to any ridiculous monthly payment just to get it over with. A good alternative is to go to your local credit union to obtain a car loan ahead of time. Because let’s face it, getting the loan through the dealership will not serve your piggy bank well.
Takeaway
Having your loan secured ahead of time with favorable terms will be like negotiating your car based on the car’s price only. You’ll be much better off.
Final Thoughts
You work hard for your money. So take care of it. Taking a few preemptive steps and negotiating with your vendors should be the norm. So don’t be shy and make those calls. Let them know they need to earn your business by taking the very best care of you, their customer. Heck, it’s certainly worth a try.
Here are a few books I recommend for learning how to negotiate effectively.
- Never Split the Difference
- Getting to Yes: Negotiating Agreement Without Giving In
- Negotiating for Success
For simple effective ways to save more money check out these posts.
- Saving Up an Emergency Fund
- Tips For Saving Money
- Tracking Your Spending
- Save Money by Making Your Own Household Cleaning Products
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