Budgeting Tips: How To Negotiate

How to Negotiate
The answer is always “no”, unless you ask the question. Have you ever thought about how many opportunities you might be missing in life just by not asking the right questions? Sometimes if you ask the right question, many good things can result from it, including saving tons of money. In today’s blog post, we will talk about asking the right question of negotiating, basically, politely asking someone for a better deal. You might be nervous about the subject of “bargaining” and think there’s no place for it in today’s world, but you just might be surprised. For example, you can negotiate on many purchases, including a car, a home, even credit card or banking fees, or a computer. You never know until you ask, so don’t assume the ticket price is the end of the story.

Know Your Bottom Line

Before you can even start negotiating, you need to know your bottom line. What is really the minimum price you can afford to pay for this item? Whether it’s a car, a home, or even a computer. What’s your budget? You must know this number before you even walk into the store or dealership.

Know Your Product

If you’re knowledgeable about the product, that shows you’re serious and you’ve done your research. If it’s a car, know the features of the car. Know the normal asking price to get it brand new. Know the Kelly Blue Book Price. Know prices of other local dealers. If it’s a computer, know the brand and the specs. Know the prices you can get it for online. Know the reviews of what other people think about it. The more you know about the product, the more convincing you will sound when you try to explain the price it’s worth to you.

Explain Your Circumstances

Don’t complain. It’s not going to help if you walk into a store and say “I need a deal on this computer because I just lost my job. What can you do for me?” Instead explain a bit about your circumstances. “I just moved to the area and I need a new car to get to work.” or “I’m a college student and my computer just crashed.” Instead of spending too much time here, simply mention what’s going on. This shows you are human and can appeal to the human side of the person you’re negotiating with. They’re not all robots.

Name Your Price and Explain Why

Don’t just say, “I’d like a deal.” Say specifically what you’re looking (your bottom line) and be reasonable. Don’t ask for 50% off. Name your bottom line and how you reached that number. “I’d like to spend $450 or less on this computer, because that’s how much money I am getting to sell my old one, and it’s really important that I break even.” This shows you’re not just coming in wanting a free deal. You’ve done your research, have a plan, and really want this item if you can get someone to work with you.

If you follow these steps, you’re likely to get a bit of a lower ticket price on your item. That being said, it doesn’t always work. You’re not always going to be able to go to your favorite store/dealership and get something at the price you want. Do your research, be determined and persuasive, and give it your best. Following these tips on how to negotiate and you never know- you could save big, just because you asked.