Interested in saving money? Who isn’t! Last week we discussed the proper negotiation mindset (see Blog dated Dec 6th) and this week we delve into practical strategies to apply.
So how do you get the best cost or price? It’s simple. It’s done by applying strategies that level the playing field.
Recall, retailers/salespeople are doing their ‘selling’ every day and you are NOT their first customer! Consumers enter the market less frequently for big purchases i.e. a car, house, mattress (once every decade maybe?!). So, read the below strategies to level the field.
- Be confident and knowledgeable. Be prepared and armed with an understanding of ‘The Market’ – it is the easiest low hanging fruit. Research is available online, magazines, etc. Consumer testimonials are essential. Know what you want and do your homework before purchasing. Isolate your options so you spend time efficiently.
- Concepts around timing –
- Investment in time – The more the salesperson has invested time in you, the less time they have spent on other customers. You are affecting their commission. When the right amount of time is invested, a few hundred bucks off (a big deal for you), means little to them to ‘get the sale.’
- End of month – depending on what product is being negotiated, ie cars – sales people must make monthly quotas. Use this to your advantage and go at end of month.
- Time of day! Let’s continue with the car example –go on a Saturday – Do you go in the morning or at end of day to close the deal? The answer: At the end of the day of course! They want to go home and want to conclude the sales and you can negotiate effectively.
- Seasonality – never buy your winter jacket, snowmobile or skis in the winter. Purchase in summer. Buy your boat or convertible! etc in the winter – there are always better deals as they flush through inventory.
- Threaten to leave! Call up your telephone or Internet provider and threaten to go and they will send you to their loyalty group. If you have done ‘a’ above, they will reduce your bill by 25% or more!
But like anything, it takes an effort to save $. Level the playing field as best you can.