5 Things that You Should Know When Negotiating a Price when Buying

If you think you can’t afford to go shopping because times are tough, remember that they are tough for everyone. This means that the stores want your money, the retailers want your trade, and often all you have to do is ask for a discount or an added extra to the sale and you shall receive. However, to make sure that you have the strongest bargaining power in any purchasing situation, follow these five tips to negotiate the best price when buying anything.

Know what you want to pay

It is important to have a clear figure in mind from the beginning of the negotiation as you need to define what you think the item is worth and what you are willing to pay before you can successfully negotiate that price. Therefore, start by deciding what you think the item is worth, and then making an offer below that amount.

Hold your ground if the seller immediately refuses, as this is only your first offer, and you’ve left room to negotiate. This is why it is important to be clear in your mind about how high you are willing to go too – you may have an ideal price in mind, but a little above that may also be acceptable. From your first offer, you and the seller will haggle back and forth, making offers and counter offers and your determination and perseverance should show the seller that you are not going to pay the full price for their item.

Expect to negotiate

It is possible to negotiate on the price of many items you want and need to buy, but it isn’t always easy. Instead, you need to be prepared to put in the time to negotiate with the seller, and can’t expect to make an offer below a ticketed price and have it automatically accepted. First you need to understand that the seller has their own ideal selling price, and one they are willing to accept – just as you have determined your ideal purchase price, and the absolute maximum you’re willing to pay, above.

Therefore, be prepared to give and take during the negotiations you may point out a scratch on the item, the seller may throw in an extended warranty; you may suggest a price $50 below the ticket price, the seller may suggest a price $25 below the sticker price. When you can show you are reasonable and open to a genuine negotiation, the seller is more likely to try and offer you a realistic discount.

Don’t be fooled

While you are trying to build up a mutual respect with the seller, don’t ever let your guard down when negotiating on price. You are dealing with a sales person and sales is a job which requires quick thinking and diversional tactics to earn the most commission for the sales person and the most profit for their boss.

When the sales person makes an offer, carefully consider it to make sure you understand the conditions and inclusions you are being offered. Repeat the offer back to the sales person to verify what they’re offering and if you ask questions about the offer, make sure the sales person answers your question in full, rather than just talking around the topic, because if you can’t get a straight answer on something, you’re probably not getting the good deal you thought you were.

Flinch

This may sound like you’re showing your weakness, but when negotiating on price it can be a valuable tool. When you visibly flinch in reaction to a price offered by a sales person you are aiming to make them feel uncomfortable about their offer. When you are able to show that you are truly shocked and appalled at their offer, which you don’t consider a discount at all, you will find them start to try and justify their price and hopefully lose their confidence and be unable to maintain their rationale for charging you such a high price. The ideal reaction from a sales person to your flinch is of course an immediate concession and a second, lower offer.

Product show

Finally, you want to make the sales person feel as though they have invested in you, by getting them to spend a lot of time showing you a lot of different products. You want to make sure the sales person has worked hard to show you their range and explain all about the features of each product before you make your first offer. In this way, they have already invested a lot of time and effort in you, and so they want to make sure they get a sale out of it, making it more likely they will accept your offer, and sell the item at less than they would have liked, to secure a sale.

Alban is a regular personal finance contributor. Over the last 3 years, Alban has written hundreds articles on various personal finance topics. When he is not writing, Alban reviews loans at Personal Loan Finder.