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Haggling
Tips and techniques to get decent discounts
Article updated monthly - last updated Monday 15 February 2010
‘If you don’t ask, you don’t get.’ This saying can be applied to many situations in life, but it’s particularly relevant during these tougher economic times (or should we call it a bargain hunter's paradise) when sellers are desperate to win business. So, whether you're buying a toaster or refinancing your home loan, there's never been a better time to give haggling a go.
Many people are scared or embarrassed to haggle – don’t be. Remember you are the customer. And besides, what’s the worst that can happen - the seller says ‘no’. Big deal - there's a seller out there who'll say ‘yes.’
Haggling - as seen on Today Tonight Sales tricks used in response to your haggling |  |
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Haggle for the best deal! |
Channel Seven recently featured Money Saving Master's tips on haggling for a better deal. If you missed it, here it is:
Courtesy of Channel 7. Originally from Today Tonight on 27 December 2009.
While haggling can seem awkward at first, after a while it will become a natural part of your buying process. Some people even enjoy it and see it as a challenge. To help you become an expert haggler, here's some expert tips - enjoy!
Sellers expect it
Nearly all sellers have been haggled with many times before and often reduce the price if asked. In fact some will see you as an ‘easy touch’ if you don’t ask for a discount; so go for it!
Enjoy it and have fun
We Aussies definitely prefer to help someone out with a smile and a bit of cheek, but we’ll run a mile from those miserable, rude types. This especially applies to haggling – be nice to the sales person and they’re more likely to help you out. At the same time, remember you’re after the best deal, not a best friend.
Research your purchase
With many goods, you’ll be amazed at the variation in prices between stores, even in the same town or mall (or even on the net).
So the first thing you need to do is decide on the exact product you want to buy and shop around to find the best price. Then decide which store you want to give your business to, and say something like:
“I’ve seen this same fridge at Joe Blogs superstore for $650 – are you able to beat that price?” 9 times out of 10 they will. If not, try it at another store.
Don’t forget to keep an eye out for other special deals such as cash back offers – knowing about these can help you negotiate further with retailers. E.g. “I understand that Fisher & Paykel have a $100 cash back offer for cookers. Can you take $100 off this LG fridge instead?” (For more information on getting the best deal online, read our online shopping article)
Get them to throw something in
This is one of the easiest things to ask for. If the shop assistant says they can’t give a discount, they will probably be able to chuck something in for free. It could be a cable for your new TV, lamp bulbs for a lamp or socks with new trousers.
If you’re buying something large, as a rule of thumb they should be able to throw something in with a value of 5% of the item you’re buying. So if it’s a $500 DVD player, ask for a $25 DVD as well!
Buy more than one product
If you’re in a position to buy more than one product from the same seller, or even bulk buy, use this as a haggling method.
For example “I want to buy these trousers - can you give me a discount if I buy a shirt from you today as well?”
The more business you give to a seller, the better discount you’re likely to get. So consider bulk buying, or buying with your mates, to get better discounts.
Discounted or discontinued stock
If an item has been discounted, it’s generally something the seller is looking to get rid of. They’ve already discounted it once, so they’re not expecting full price and will often consider a further reduction to get rid of it.
The perfect time to negotiate is when the sales are coming to an end. Remind the seller (with a smile) that you’re doing them a favour by clearing their shelf space for new stock!
Sometimes stock is discounted because a newer model is about to come out (e.g. cameras being updated by a newer model). They’re keen to get rid of these items; so be ruthless in your negotiations.
Approach the right person
You’re not likely to have much luck in haggling with the ‘Saturday afternoon casuals.’ Try and pick the supervisors or managers and most importantly don’t bother if the staff member looks too busy to care – find someone who wants your sale.
Also note that going to the ‘very top’ may not always work either. The head honcho may be too busy and see your sale as too small.
Timing
You’re unlikely to get the best deal when the shops are heaving with customers. Go to the stores when it's quiet – early mornings or mid week can be good.
The time of the month can also help you with your haggling. At the end of the month many retailers and sales people are trying to hit their sales targets; hence they are much more open to haggling as they’re more concerned about volume rather than profit at this time. Generally, the last Saturday and Sunday of the month can be great times to bargain.
A slight imperfection
A small stain on clothing can be washed off and you’ll get many scratches on a fridge in its lifetime; so do you really care about one tiny scratch to start with? Items with slight imperfections are difficult for retailers to shift and so you should always ask for a discount.
The final push
If you’ve managed to get a discount through your skills as a haggler – well done! But remember, if the seller has discounted, they might have a bit more up their sleeve. Say “you’ll buy it now” if they reduce it a bit more or at least get them to throw in something else with it (see number 4 above).
Sales staff are generally happy to hear you haggle as it means you’re a real sales prospect. However, remember that they are trained to sell their product; so here are a few things to watch out for when negotiating:
The silent treatment – A well-rehearsed technique is that the salesperson makes an offer and then goes silent. They do this near the end of a sale to make you feel uncomfortable and accept the price. Bite your tongue and don’t say anything. Let the sales person break the silence and push for more.
“My manager says that’s the best I can do” – This is a great trick used by sales staff to make you think they’re ‘on your side’ and their miserly manager won’t let them budge any lower. Don’t fall for this. Make them go back to their manager for a better offer, or ask to see them. You’ll often get a lower price by doing so.
“They’ll only be at this price for a short time” – Rubbish. Don’t fall for this panic selling technique. In the current economic environment, there will be sales and discounts to be had all the time.
“That’s the best I can do” – This is a tricky one. Sometimes the seller is telling the truth, whereas at other times they can drop their prices further. The trick here is to do your research and know what you are prepared to pay. If you think you can get a better price elsewhere, say “ok, that price is a bit too high for me, but thanks for your help anyway.” More often than not they will be prepared to negotiate further or at least throw something in.
Try using some of these sure fire haggling phrases to help you through the negotiations:
“Can you do me a deal on this?”
“If I buy it now, what will you throw in with it?”
“I’d love to buy it but I can only afford $90.”
“My missus/fella will kill me if I pay that much!”
“Can you do a discount for a struggling family/poor pensioner/student.”
“I’ve got $50 in my pocket, will you take that?”
If you’re game, you can try haggling for just about everything, but you may struggle to get a discount if you’re buying a carton of milk at your local supermarket. Apart from that, everything’s fair game. Here are a few items and places where you should always haggle:
- Electrical
- Furniture
- Jewellery
- Second hand/new cars
- Home loan/credit card fees (and sometimes interest rates)
- Any second hand product (e.g. through the newspaper, internet sites)
- Specialist/hobby products (e.g. camping, biking gear, etc)
- Clothes shops (yes, they will negotiate!)
- Any single purchase over $100
Fortunately, most businesses realise it’s much easier and more cost effective to keep a current customer than to find a new one. Because of this, providers will go a long way to keep you when it’s time to renegotiate your current contract (this could be insurance, phone, mobile or cable TV). One of the guys in our office even got a call from a company employed by Telstra to try and win his business back with a better deal!
So, when your current contract is up for renewal, use this process:
1) Call up the call centre and tell them that your current contract is about to finish and you, therefore, wish to cancel it.
2) At this stage they’ll ask you why. Either tell them that you can’t afford the current price or that you know there are better deals out there, so you’re going to shop around and go with another provider. Even better, do some research to find a better deal first. Many of our guides on this website show the current cheapest deals (updated at least monthly) so make sure you check them out.
Occasionally, the call centre staff may be able to give you a better deal on the spot, but more often than not they don't have the authority.
3) Your aim is to go through to the ‘disconnections team.’ They have an enormous amount of discretion and will almost always be able to offer you a discount or sweetener to keep you as a customer. When you get through again, tell them that you want to cancel as you cannot afford their product any longer. They’ll almost certainly offer you a better deal.
Try it – you’ll be amazed what you can save!
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