There’s often an assumption amongst polite people that negotiating with a seller is impossible. Many people are simply afraid of negotiating.
But an initial price offer isn't always set in stone. Until it’s agreed upon by both buyer and seller, a price is merely a proposition offered by one party. The buyer has a say, too, but only if they attempt to bargain.
Not everything is negotiable. That teenager working the counter at a fast food restaurant doesn’t have the authority to decrease the price of that chicken sandwich. But in situations where the seller has autonomy to change the terms of the deal, he or she will at least consider it if the conditions are right. You won’t know unless you ask.
From a lightbulb to a fleet vehicle, there’s almost always a way to get a better deal with some strategies in mind.
1. Everything is negotiable.
Almost every item being sold can potentially be sold for less. Everyone loves a deal, so don't be afraid of bartering.
2. Make a deal and get small stuff thrown in.
With small things, you can often ask to have them included gratis. Signing a yearlong lease? Ask to have a couple days free to move stuff in. What’s two free days compared to 365 days? With big purchases in general, you get more leeway. If you're new to haggling, focus on negotiating the small extras you could get as part of a deal first.
3. The bigger the deal, the more bargaining you can do.
When it comes to the art of negotiation, big ticket items such as houses, cars, or ten new production computers is pretty much always up for lots of negotiation and can be haggled. You probably need to draw up a contract on anything big, and contracts aren’t carved in stone. The protocol just goes like this: the seller makes an offer (in their stated price), you counter. The process moves on back and forth, like a tennis match, until an agreement is made.
4. Getting a bargain without lowballing.
Be careful, while (almost) everything is negotiable, and you're allowed a lot more “give” in expensive items, overzealous haggling will turn off the seller and lowballing should be steered clear of. A good rule of thumb is any offer below 25 percent of the ticket price is a slap in the face.
Until it’s agreed upon by both buyer and seller, a price is merely a proposition offered by one party.
5. Do your homework first.
You should have a fair market idea of what the going rate for an item or service is for anything you're looking to purchase and bargain for. Don’t be afraid to bring this up, especially if the item is more expensive than the going rate. The seller will probably have a reason why this particular item is so far afield from the market value. If they don’t, make it clear you don’t need it.
6. Be willing to walk away.
You can’t negotiate what you need. When you absolutely must have something, you have no leverage. This is why many people are afraid to haggle on apartment rental rates, for example. Because you absolutely need a place to live, but do you need that specific place? Even if you do, don’t let the landlord know it. In any scenario, don’t let the seller think you’re 100% sold on their product and must have it; they're far less likely to accept an offer or give you a discounted rate if you do this. Be patient when you’re haggling and don't go into negotiation with your heart completely set on a product. Even if you walk away, the seller may contact you at a later date with a better deal.
7. Don’t let the seller know how bad you want something.
Often we have a romantic notion that a seller will make a deal because they know how bad we want something. Why should a seller cut you a deal if they know you’ll pay more? If you can show the seller you're more than happy to say "no", then you hold the upper hand when it comes to bartering.
8. Don’t let them make you feel bad for bargaining.
Some vendors will pull the guilt trip card if you bargain. Again, all the seller has to do is refuse. If the option always exists for both parties to decline the terms of the deal, there shouldn’t be pressure. Stand your ground: you're allowed to shop around for the best deal and aren't obligated to purchase any given product.
9. Respect the seller.
Above all else, be cordial. Everybody has to make a living, and it may be the case that creating a respectful relationship matters more than the current deal itself if you plan to buy from the seller again.
Master the Art of Haggling
Knowing how to negotiate well can pay off for business owners, customers, and sellers. Regardless of how reasonable or competitive you believe your pricing is, you'll likely run into some customers who want a better deal. If you can negotiate a win-win solution, you'll have the chance to build a long-lasting customer relationship.
Photo: Getty Images
A version of this article was originally published on September 24, 2012.
