Improve your chances of a better price by 50%
There are plenty of ways to get a better deal,
but at the core of them all is negotiation. Two parties will generally agree to
some sort of concession on both sides. Example: You agree to pay in cash right
now and the seller agrees to lower the price by 5%. However, in order to kick
the negotiations off someone needs to ask for something.
Asking: the BEST way to get a better deal.
"It doesn't hurt to ask." In the case of getting a better value it certainly
does pay off. According to Duquesne University, marketing professor Audrey
Guskey, there is an excellent chance you can get a better price by negotiating,
otherwise known as haggling. Guskey said consumer surveys back up her haggling
success and that she encourages more shoppers to do so. "Only one in eight
people haggle, so it's a very low number, but about 50% of those haggling
actually get what they're asking for. They get a much better deal," said Guskey.
If you knew there was a 50% chance of getting a better price just by asking,
wouldn't it make sense to just ask the salesperson for a better deal today?
Several years ago my 6 year old daughter and I were at a fair. A vendor was
selling $40.00 blankets and she wanted the one covered in pictures of
butterflies. I told her we would ask for a better deal. We circled the vendor
area and I put $31.00 in my right pocket.
We came back closer to closing time and I said to the vendor “Your work is
absolutely beautiful. I would love to put one of these blankets in my daughter’s
room. Are you willing to budge a little on the price?” She said the best she
could do was give me 10% off. I pulled the $31 out of my pocket, counted it in
front of the vendor as if I had never seen it before, looked glum, looked at my
6 year old, and asked the lady if she would take all the money I had in my
pocket - $31.00. She looked at the money, then at my daughter, and she said yes.
How NOT to negotiate a better deal.
A classic example of how NOT to negotiate was given by former President Ulysses
Grant long before he reached the White House. When he was nine he had saved
enough money to buy his first horse. He had $25.00 to spend and his father gave
him advice on negotiation before he left to buy the horse from their neighbor.
Jesse Grant told his son to offer Ralston, the neighbor, $20.00 for the horse
and see if he would take it. If Ralston didn't, Jesse said to go up to $22.50,
and finally the full $25.00.
9 year old Ulysses went to the neighbor and said, "Papa says I am to offer you
$20 for the colt, but if you don't take that, I am to offer $22.50. And if you
wont take that, to give you $25.00." As you might expect, Ralston told Ulysses
that he was unable to accept less than $25.00, at which point Ulysses gave him
the full $25.00. Once the story got out it took Ulysses a long time to live down
his first attempt at negotiating! Source: Ulysses S. Grant: soldier & president
by Geoffrey Perret
Remember, successful negotiation also includes your willingness 1) to be fair
and realistic about your initial offer and counter offers and 2) to walk away
from a deal that just doesn't meet your expectations. That said, what will you
ask for a better price on today?