Now is a Good Time to Flex Your Negotiating Muscles

One good thing about the down economy, is that it should be a whole lot easier to negotiate a better price on certain goods and services. People want to sell you stuff right now. In the United States, negotiating is not really part of many financial transactions-or at least it may seem that way. The person at the drive-through window at McDonald’s is not going to cut you a deal on an Extra Value Meal; but there are lots of items and services that are “open to negotiation”, when it comes to the price. The key is to realize that a lot more things that can be negotiated than you probably think.

Some areas you should be able to negotiate include:

• Services- like cable, phone, satellite, and internet, gym memberships, cell phones-Always ask for a better price, or more services for the price you are paying. Some people do this on a regular basis, like yearly, and are able to benefit greatly from it.
• New or used cars- With both new and used cars, now is a  really good time to negotiate a great deal.
• Loans-If your credit is good enough to qualify for a loan, interest rates are really low right now-go for the lowest rate you can get (with a reputable lender, of course).
• Credit Cards-It never hurts to ask for a reduction in interest rates, and right now credit card companies (and the associated banks) should be more willing to negotiate than lose a customer.
• Salary- Even in this tight economy, if your job is fairly secure and you do it well, there is no reason you cannot negotiate a higher salary for yourself come raise time.
• Big ticket items-Large items, like appliances, TV’s, etc.,- the salesman often has some leeway on the final selling price-don’t be afraid to ask.
• Medical Bills-medical services are one area that are almost always open to negotiation, that many people don’t know about. My article on negotiating medical bills is a good place to start for ideas.

Ways to become a better negotiator

Research before you buy- Being educated on price and the item specifics can let you negotiate for similar type items-such as 2 different car models, or TV’s by different manufacturer’s. Know what the going price is, what the items have sold for “on sale”, etc. Knowledge is a key in maintaining the upper hand.

Ask for the best price- When you start the negotiation process, ask the seller what their best price is. If you make an offer 1st, it could be just what the seller is looking for, and you may not be able to negotiate any lower after that point.

Pay cash- Cash is still king, and bringing cash to a deal can almost always get you a better price than if you pay by check or finance- like on a used car, for example.

Be patient and prepared to walk away- You must be patient, you may not always the best offer right away. If you can’t get the deal you want, walk away and try somewhere else-if the deal ends up being the best one you can find, you can always come back.

Do you like to try to negotiate deals on things? Do you think now is a good time to negotiate?

Negotiating a Deal and Tips on Becoming a Better Negotiator is a post from: Think Your Way to Wealth a Personal Finance Blog Copyright 2008-2010

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