negotiate

Ask the Readers: What Are Your Best Negotiation Tips?

Ashley Jacobs — Tue, 04 Sep 2018 08:30:11 +0000

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There are many skills that help you live more frugally, and negotiation is one of the big ones. When a negotiation ends well, you walk away from the interaction with what you want at a price you can afford — and the other party feels like they gained something, too.

What are your best negotiation tips? In what situations are you most likely to negotiate? What's the best deal you've ever gotten from negotiating?

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Tell us your best negotiation tips and we'll enter you in a drawing to win a $20 Amazon Gift Card!

This article is from Ashley Jacobs of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: Negotiate Discounts and Freebies For Your Dream Wedding

Ashley Jacobs — Wed, 20 Aug 2014 19:00:07 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on negotiating discounts and freebies for your wedding, ways to go broke, and working out without a gym membership.

10 Costs You Should Always Negotiate

Mikey Rox — Wed, 26 Mar 2014 10:24:18 +0000

Negotiating is a bit of a lost art in our society.

Historically, nearly every kind of good or service was negotiable and subject to haggling when it came to finding a fair price. Today, prices are mostly set by sellers, and people are generally hesitant to question those who set them.

But negotiating can still be a prudent thing to do, given the proper environment and a negotiable product. Even larger companies, particularly those that sell some kind of a monthly service, will negotiate, especially when it comes to either keeping or losing customers. (See also: How to Negotiate With Confidence)

As the customer, the power is in your hands as long as you've got money to spend. For most companies, they'd rather you spend it with them instead of somewhere else, even if it means they sell you something at a reduced rate.

To increase your chances of successful negotiations, here are a few products and services that can be negotiation-friendly if you're willing to haggle.

1. Cable Bill

Where negotiating can really save you some money is when your promotional period runs out. You know, that six month period where your cable bill is reasonably cheap, then out of nowhere it skyrockets.

Almost without fail, you can call and simply be honest about how you feel. You can tell them, "I feel like this is just way too high a price for my cable bill."

At that point, they'll at least get you on another promotional plan, and they may also work with you to figure out what aspects of your service you're not using that you could eliminate to cut down the price. If you need to kick it up a notch, just tell them you're thinking about switching providers, and they'll bend over backwards to keep you.

2. Medical Bills

By the time you have a patient, a hospital, and a third-party insurance company involved in the payment of medical care, the waters can get pretty murky.

That's frustrating, but it can also work to your advantage if you feel like your bill is too high. Make sure you know at least the basic ins and outs of your insurance plan, because insurance companies and hospitals will frequently make mistakes when processing your claims and bills.

A few annoying phone calls can either get your bill reduced, or get your insurance company to cover a bigger chunk. (See also: What to Do If You Get a Huge Medical Bill)

3. Gym Memberships

With Planet Fitness now charging only $10 a month for memberships, they've increased the competitiveness across the board.

So if the gym in your area doesn't offer a plan that low, you can always cite Planet Fitness as comparable rate. You might also be able to negotiate over what features of the gym you want to pay for. For example, some gyms have pools that come with the standard membership. If you don't want to use the pool, see if you can exclude it from your plan for a cheaper price.

4. Rent

The rental market fluctuates like any other, but there aren't many set rules or standards for what rent should cost. That means in most situations, you can negotiate a better price or at least get the owner to cover something like water or Internet expenses.

It'll depend on the personality of whoever you're dealing with, but a good approach might be to tell them you can only afford a certain amount per month and see if they will work with you. (See also: Haggle Your Way to Cheaper Rent)

5. Trash and Recycling

A lot of private trash companies, like the ones hired by homeowner associations, will bill you a flat rate once a year. What most people don't realize is that many of those same companies are in charge of snow removal.

If you've been subject to a mild winter without the need for snow plowing, get in touch with the head of your HOA and see if you can get your bill reduced. It'll go better if you bring it up before you get the bill in the mail.

6. Paint

OK, this is not exactly an example of negotiating — it's more an example of asking, but it's such a great deal, I wanted to include it. Any place that sells paint will have a lot of returns and mis-tints to deal with. Sometimes they'll put them back on the shelf at a discounted price, but if you're not super picky about the color, ask for them specifically.

You can often get this paint at a pretty steep discount, sometimes up to 75% off.

7. Clothes

Keep an eye out for imperfections, and keep in mind that they don't have to be major ones. Any sort of defect can earn you a discount at the register. Most of the time clerks will be more likely to just give you the discount as opposed to going into detailed inspection of the item in question.

8. Yard Work or Landscaping

Large landscaping companies will often charge a lot for the work they do, so you're better off hiring an individual, or someone working for themselves who you can negotiate a price with. If they want the work bad enough, they'll give you a deal.

9. Car Insurance

The car insurance market is incredibly competitive, which means calling around to a few companies and giving them the chance to beat the "other guy's" price can turn into a bidding war for your monthly premium. Call around and jot down the price of each one, reporting the lowest rate to the next company you call. (See also: Mistakes to Avoid When Shopping for Car Insurance)

10. Anything Used

If there were ever a time to work on your haggling skills, this is the time to do it. Be fair and make sure you can identify concrete reasons the used item should be cheaper. Any kind of scratch or visible imperfection should knock down the price.

Consider that a lot of places overcharge for used items, so you shouldn't be shy about trying to get the price down.

Negotiating Can Still Work

Today, businesses are more standardized and prices seem to be always be fixed without room to move. It has made us feel like negotiating for our goods and services is no longer a viable or acceptable way to do business.

In some cases, prices are set in stone and talking until your face is blue won't move them. But don't assume that's always the case. If you look for opportunities to get costs down, they will present themselves. At that point, a little dialogue can go a long way.

What do you negotiate the price for? Let us know in comments!

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: Negotiating the Raise You Deserve

Ashley Jacobs — Wed, 18 Dec 2013 11:00:51 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some stellar articles on negotiating the raise you deserve, manly Christmas gift ideas for under $30, and surviving the holidays with your job intact.

Best Money Tips: Surprising Things You Can Negotiate

Ashley Jacobs — Thu, 21 Nov 2013 11:00:10 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on surprising things you can negotiate, thrifty Thanksgiving side dishes, and maximizing your investment return.

Best Money Tips: How to Negotiate Your Rent Payment

Ashley Jacobs — Tue, 20 Aug 2013 09:36:43 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on negotiating rent payments, free stuff for your birthday, and making your commute suck less.

Charged With an Overdraft Fee? Get Your Money Back!

Darren Wu — Wed, 19 Jun 2013 10:36:33 +0000

Picture this: You login to your checking account to review your transactions — and BAM!

You've been hit with a $35 overdraft fee. Your account has a negative balance, and it's showing in bold red font. (See also: Banks Can Manipulate Your Transactions, Then Charge You 1750% Overdraft Fee)

What do you do now?

Two things: Get your money back, and make sure it never happens again.

I'll show you how to do both. Let's start with getting your money back.

Getting Your Overdraft Fee Refunded

Banks spend lots of money trying to earn your business. Your deposits are used to lend money to other customers, in products such as a mortgages or business loans. They profit by charging interest and end up pocketing millions of dollars.

So once they get you as a customer, the last thing they want to do is lose your business. You mean a lot to them.

Knowing this, you're now in a position of power — negotiating power.

To get your overdraft fee refunded, just call customer service and ask for the fee to be removed. Be polite, but firm.

Tell the representative what you want, and why it's in their best interest to give you what you want.

Don't get angry, but be persistent. If you've been a responsible customer, you'll get the waiver sooner or later.

If you need more guidance, follow this simple script on negotiating out of bank fees. Trust me; it works. I know, because I've used it myself!

It'll be the quickest, easiest $35 you'll ever save.

Yet you should only need to do this once. Because after you get your money back, you'll move on to the next step.

Make Sure It Never Happens Again

Once you get your money refunded, you should set up your finances so that overdraft fees will be a thing of the past for you. Here's how.

Put Your Bills on Your Card

First, charge everything you can to your credit card. This includes routine expenses such as your cable, internet, and cell phone bills, plus other stuff such as eating out, groceries, and gas purchases.

By putting these charges on your card, overdraft fees will no longer be an issue.

Why?

Because you can set up automatic payments to be sent from your checking account to your credit card before your bill's due date, so that you don't get hit with a late fee. Better yet, since you're charging purchases to the card that you'd normally make anyway, you'll get more bonus points or cash back.

But what about other bills that can't be charged to your credit card? Some expenses must be paid directly from your checking account. These can include your monthly electricity and gas bills, your rent or mortgage, and other expenses such as DMV fees.

Plan and Manage Your Expenses

Here's how to manage both your credit card and non-credit expenses.

Since many of us get paid twice a month, the first thing to do is to wait for your second payday of the month.

Let's say you get paid at the end of May. Your credit card bill will likely be due in the beginning of June, for purchases you made in the April and May timeframe.

Knowing this, just perform this simple calculation — since your paycheck goes into your checking account, enter your checking account balance first. Then subtract your upcoming credit card balance that you'll be fully paying off. After that, subtract the upcoming expenses that can't be charged on your card.

Lastly — and most importantly — leave $200 as a buffer in case unexpected expenses pop up before your next pay period. Then you're free to do whatever you want with the money that remains — save it, invest it, or splurge with it (okay, don't splurge with it).

That's it. Once you set up this process, maintaining it will be easy, like second nature, and you'll never have to worry about getting hit with an overdraft fee again.

Have you ever been socked with an overdraft fee? Did you fight it and win? Tell us about it in comments!

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This article is from Darren Wu of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Negotiate With Confidence and Strike the Best Deal

Kentin Waits — Thu, 18 Apr 2013 10:36:33 +0000

I'm always surprised when I see otherwise confident, capable, and brilliant people cower at the prospect of a little friendly negotiating. When it comes time to buy a car, hire a service, or pick up a second-hand coffee table, we shy away from haggling. I think it's largely due to being unprepared and not knowing the protocols that can help ensure success. The result? We're paying more than we need to for much of what we buy. (See also: Negotiating 101: The 5 Buyers You Meet in Hell)

If you'd like to become a better negotiator, here are a few tips that can vastly improve your chances of landing a sweet deal on your terms.

Come With Cash

I've said it before, but it bears repeating — cash is king.

Nothing positions you for success like coming to the negotiating table with cash in-hand. First, in the Age of the Craigslist Scam, cash speaks volumes about your seriousness as a buyer. Second, it motivates sellers to be more flexible on price, especially if they just want a quick sale so they can move on to other things. Third, it's quick and clean — no waiting for ATM runs, for the bank to open, for checks to clear, etc.

Be the First to Respond

When negotiating, there's no such thing as being fashionably late. Responding promptly and making a commitment to see an item before others have a chance to seize the deal isn't just smart shopping. Sellers will often honor a "first come, first served" rule, even if another buyer offers a better deal later.

Show Up

It's true — sometimes the difference between success and failure lies in just showing up. Anyone who advertises something for sale expects a few flakes, but that doesn't mean it's OK to be one. If you're interested in an item and want to prepare yourself for a successful deal, show up, don't be late, and try not to reschedule half-a-dozen times.

Communicate

Successful negotiating is built on clear communication.

Buyers should ask questions, discuss their concerns about an item, and backup their offers with sound reasoning. Silent sellers and stoic buyers don't make for easy deals. Open up, chat, try to create an authentic rapport with a seller, and let the negotiating process ebb and flow naturally.

Tell Your Story

Sometimes it doesn't hurt to share a little bit about yourself and how you'll use what you're buying. No need for elaborate stories or embellished tales of woe. Just help the buyer to understand and appreciate your situation.

Maybe that used bike will be your kid's first mode of independent transportation. Maybe that riding lawnmower will help your aging father maintain his own lawn for a few more years. Beyond being purely transactional, negotiation is a human-to-human activity, and its gears are greased by sharing.

Be Fair

Scoring a bargain is great, but there's no need to cut a seller's margin to the bone. The best deals leave both buyers and sellers feeling satisfied. Understand the real value of what you're negotiating over, estimate what the buyer has put into it, and shoot for a figure that will respect both parties.

Beyond all these suggestions, the one overriding piece of advice that should guide your negotiating is this — relax and enjoy the human-to-human exchange that's part of the process. Within your own predetermined limits about price, be flexible and view the seller not as an adversary, but as a collaborator. Before you know it, you'll be an expert negotiator scoring bigger and better bargains than ever before.

Are you a negotiator? What was your most recent haggling bargain? How much did you save and what was the process like?

This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: Negotiate Your Way to a Lower Cable Bill

Ashley Jacobs — Tue, 05 Feb 2013 10:48:36 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some stellar articles on negotiating a lower cable bill, brilliant uses for beer, and saving money at theme parks.

Best Money Tips: Negotiate for Lower Rent

Ashley Jacobs — Tue, 10 Apr 2012 09:48:12 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some great articles on negotiating rent, last-minute tax tips, and credit card expiration dates.

25 Things I Don't Want to Regret Once I Retire...

Anthony Marrone — Tue, 22 Jan 2008 04:12:10 +0000

I met with an elderly couple today in their home to execute some planning documents. While neither of them ever had jobs as professionals and neither inherited any money from family members, they have amassed quite a respectable sum of money as they continue to progress through the Golden Years. The lesson that they passed on to me today in our short meeting was that you have to proceed through life without regret, and live each moment so that you will not later look back with regret.

After meeting with the couple, I returned to my office and put together a list of 25 ideas, goals, etc. that I want to look back on when I reach retirement age, and say that I fully accomplished or successfully practiced each of these 25 goals. So without further ado, here is part one of my list, with part two coming tomorrow night when I return home from class (feel free to add to my list or share your thoughts in the comments):

1. Start Saving Money Now, and Continue to Save Money Forever. One of my major problems before I discovered the world of personal finance is that I would pay everyone, but I would never pay myself. I had no problem sending the cable, car insurance and energy bills each month, but I always forgot to pay myself, i.e. save. Now I've opened a high-interest savings account, and plan on saving even more as my income continues to grow.

2. Stop and Think About Prospective Purchases for at Least 30 Seconds. I'm an impulse buyer, I always have been. This might be the "typical male shopper" shining through, but when I see something I want, I typically convince myself that I can afford to purchase it. This is especially easy when buying gifts for those I love. I've taken to thinking about purchases before I make them in the stores, or if online, I like to leave the website I am about to buy from and do some research to confirm the utility of the product or search for a better deal.

3. Make and Stick to a Budget. This is difficult enough for myself and the fiancee now, with no children and relatively little worries beyond our lovable dog. However, I anticipate budgeting will become even more complicated and necessary as our family grows, which is why I've taken such a strong liking to the You Need A Budget system.

4. Max-Out Your Retirement Plans Annually. This is the first year I've committed to maxing out the plans my employer offers, but I haven't even graduated law school yet, so I think there's time here. What I do know is that I would horribly regret not electing to max out these plans 40 years from now.

5. You Own Banks, Not The Other Way Around. I'm essentially lending banks my money every time I make a deposit. There's no reason the banks shouldn't be paying me interest in the same manner they expect to earn interest. I've committed to only doing business with banks that offer competitive rates (although I'm not trolling for the best rates) and offer great customer service.

6. Carpool More. I feel this could be a great way to not only save on expenses and help the environment, but also become closer with those I work/go to school/spend time with. Therefore, carpooling becomes a win-win-win situation.

7. Dryclean Less. If I told you the amount I spend at the drycleaner each week, you would probably be sick. There's not a lot of chatter around the PF blogs regarding the high cost of drycleaning, but it is one of my biggest monthly expenses. I'm currently in the market for a professional-grade steamer for my suits/pants/shirts and hope this will trim large amounts from my monthly bill.

8. Purchase Quality Blankets. Living in Upstate New York, I pay gobs of money to heat my home through the long winter. As I have not yet decided on the electric fireplace as a supplement to our energy-efficient, but still overpriced furnace, we are using blankets more so we can keep the heat lower (although it is buzzing furiously right now). Plus, the blankets allow for more snuggling!

9. Volunteer More Often. This is a personal-maintenance issue for me. I grew up volunteering in my church, and now I'm using some of my skills to give back through VITA by helping prepare tax returns for low-income individuals and families.

10. Never Pay Retail Price. I like to haggle with people, but that's just in my nature (thank you Law School!) Plus, there's nothing better then feeling like you beat the system, and got a great bargain. I've been getting better at not accepting "we can't go any lower" for an answer, and also being willing to push the envelope as far as necessary to get the best deal. When push comes to shove, it's all about not being "sold" on a product or service when you are negotiating for it, and being able to walk away if the price is not agreeable.

11. Prepare for Roadblocks. The first step to prepare for emergencies is to save for emergencies. This is why I've been frequently trying to stash money in our Emergency Savings account. Only once I've created/maintained/replenished this buffer will we truly be on the road to financial freedom.

12. Live on Less Than You Earn. This is difficult because the fiancee and I are both in grad school, and the earnings are not that great. However, through modifying our expectations and expenses, we've managed to live pretty comfortably and still be able to afford to plan for parts of our upcoming wedding without plunging ourselves into mountains of debt (with the exception of our growing student loans). Living on less than we earn will become increasingly important as we will both work in professional settings and likely face the peer-pressures that accompany higher-paying jobs, including wardrobe updates, fancy cars, big houses, etc. As long as we can continue to live on less than we make, I believe the long-term payoff will be enormous.

That's all for Part One! I look forward to reading all of your comments and hope you will tune in tomorrow for Part Two...

This article is from Anthony Marrone of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Walking away (from a job that’s going away) on your terms

Julie Rains — Thu, 26 Jul 2007 19:52:33 +0000

Have you just gotten a disciplinary notice after years of stellar performance? If you have and you’ve read Paul Michael’s You're Fired! 20 signs that a pink-slip is coming … (#14) you sense that you're in trouble. Rather than let the progressive disciplinary madness continue, take action.

Here’s what a friend of mine did, after we talked and I agreed with him that a reprimand delivered by human resources most likely portended termination.

First I want to tell you about his accomplishments; he had (for the employer who was looking to fire him):

brought current industry practices to a good-ole-boy company

introduced new services, processes, and programs that reaped immediate and ongoing benefits to his area’s performance

modified internal systems to improve his staff’s analytical tools

trained and developed a high-performing staff

turned around the attitude and performance of a particularly ornery employee

re-focused certain aspects of customer relationships to gain compliance with procedures

educated internal managers on the significance of his area to the company’s profitability

completed company-sponsored executive training through a prestigious, industry-recognized program

When he was asked to issue a disciplinary action on the turned-around, ornery employee that he felt was bogus, suspicions were aroused. When he received a written reprimand for a mistake that he had already admitted making and had put processes in place to correct, suspicions were confirmed. Putting pieces of the disciplinary puzzle together, he realized that his company needed to cut headcount; the HR department, rather than advocating for him, sided with his bosses.

Coincidentally, my friend had sold his home just weeks earlier, realizing that the housing market was still strong and aching for a new challenge that might present itself in a different city.

What did he do with his suspicions? He approached his boss (with whom, oddly, he had a great relationship), explained that he knew what was going on, and negotiated a severance package. He agreed to leave the company but faced the inevitable (displacement) on his terms, which included a consulting stint while he looked for another job.

I’d like to say that he found a new job prior to the end of the severance period and consulting assignment. He didn’t. Instead, he moved back home and took care of his mom when she suffered and then recuperated (with his help) from a major health crisis. After a few months, however, he landed a new job and is now happily employed. Having a termination on his record is something that he avoided.

Here’s a plan if you get an out-of-the-blue disciplinary notice just after getting a great performance review, especially after you’ve been told there are to be layoffs and/or you are asked to issue disciplinary notices that are unwarranted:

Recognize the handwriting on the wall

Accept your fate

Don't get angry

Approach your boss

Negotiate a package

Get recommendations testifying to your stellar performance

Look for a job

Walk away

This article is from Julie Rains of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

negotiate

Ask the Readers: What Are Your Best Negotiation Tips?

Win 1 of 3 $20 Amazon Gift Cards

Giveaway Rules:

Best Money Tips: Negotiate Discounts and Freebies For Your Dream Wedding

Top 5 Articles

Other Essential Reading

10 Costs You Should Always Negotiate

1. Cable Bill

2. Medical Bills

3. Gym Memberships

4. Rent

5. Trash and Recycling

6. Paint

7. Clothes

8. Yard Work or Landscaping

9. Car Insurance

10. Anything Used

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Getting Your Overdraft Fee Refunded

Make Sure It Never Happens Again

Like this article? Pin it!

How to Negotiate With Confidence and Strike the Best Deal

Come With Cash

Be the First to Respond

Show Up

Communicate

Tell Your Story

Be Fair

Best Money Tips: Negotiate Your Way to a Lower Cable Bill

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Best Money Tips: Negotiate for Lower Rent

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25 Things I Don't Want to Regret Once I Retire...

Walking away (from a job that’s going away) on your terms