Most people are a bit reluctant to haggle and therefore lose out on some fantastic bargains. In this post, I will share some of the best tips for effective haggling to get the best bargains.
Mastering these tips will help you save money and help you pay what you need to.
I was actually just reading an article that says about 68% of millennials will just pay the asking prices for motor vehicles. This percentage drops to 42% when you consider the older folks.
This must be good news to car dealers who must be making millions more from millennials.
This is money that millennials should be keeping and using for other things in life.
It is high time we put this to a stop and start saving money. Motor car dealers etc are looking for interests only.
It is time you too started looking for your interests too.
What is haggling?
Haggling is when a buyer or seller negotiate a price for a service or goods to reach a price that is acceptable to both of them. In some parts of the world such as Africa haggling is the order of the day in all traditional markets.
Related: How To Make Money at The Flea Market
Tips for effective haggling
Develop a pained expression if not happy with the price
“Every face tells a story”. I cannot seem to get rid of this line from my head. Olivia Newton-John really nailed it with this song. This was probably one of the most beautiful songs when I was growing up.
Any seasoned haggled knows the importance of facial expression. They know that every face really tells a story and they will try to tell their own story too.
The moment he is told of the price the face of a seasoned haggler will signal that he is not happy with the price.
It is not enough to say it in words. You have to say it through your facial expression first.
If your words and your facial expression are contradictory people will believe your facial expression rather than your words. It is only natural.
You, therefore, need to train yourself first by practicing in front of the mirror before you go shopping.
This is one quality you should master first to become an effective haggler.
Read the sellers facial signals
While it is important that you control your face signals, you also need to watch out for the signals coming from the sellers too.
Normally if there is a pause before they reply to you it could be that there is room for negotiation on the price.
I remember a couple of years ago when I was training as a financial investigations officer I was told to watch out for such pauses when questioning people.
For example, if someone has an answer for a straightforward question they will give it out immediately.
In most cases, if a suspect pauses in answering a straightforward question it is usually because they are hiding something.
It is usually because they are either about to lie if they are a criminal or there is something they are trying to hide.
In the case of a seller, it could be that there might be a sale soon and that could be on the sales assistant mind when responding to you.
Another tip is for you to watch out for the words being used. Words such as “at the moment” could indicate that some sales soon.
You might, therefore, have to hold back and wait for the sale.
Do some research on prices before shopping
Before you go shopping it is very important that you do some research on the product.
Search online for the prices that other suppliers are charging and other terms and conditions. You can then use your findings to your benefit in the haggling game.
For example, if other suppliers are offering a cheaper price you can point that out to the seller.
I recently heard from a colleague who got a big discount from a car salesman because he pointed out with evidence that other dealers were selling the same car at a lower price.
There is no point in paying more for a product when you can get a discount.
You need to bear in mind that sellers don’t want to keep items for too long. They are looking to sell their stock as soon as possible.
It is expensive to keep items in stock for too long.
We can, therefore, take advantage of this to get discounts.
Make suggestions to the seller
In any haggle there may arise a situation where there is a stalemate in the negotiations.
What would you do in such a situation?
If the negotiations are not going anywhere as a buyer you can help out the seller by making some suggestions.
For instance, if you don’t have all the money at once you can ask questions such as “What if I pay 50 percent now and pay the balance later?”.
These are the sort of questions that can resolve a stalemate in negotiations.
Decide on the price you are willing to pay
It is important before you go shopping to make sure that you know the price you are willing to pay first.
This will act as a guide in your negotiations. You can set this price in your mind by visiting various sites price comparison sites on the internet.
If you are already familiar with that particular market then you can use your knowledge in setting this target price.
Never ever go shopping without this important information.
Go to the shop when there are few people around
Haggling is made easier if they are few people around in the shop.
When the shop is busy it is difficult to haggle as they have other people looking for items.
You, therefore, need to pick the right time before you go shopping.
Times, when the salespeople are not very busy, are usually the best time when you are up for a haggle.
Every area has its own peculiarities but midweek is usually the best time as fewer people go shopping during this time.
Stand your ground but be nice
If you are to be successful in haggling or bargaining you need to understand that you can be firm but friendly at the same time.
There is no better weapon in haggling than a smile on your face and being friendly.
Make sure that the salesperson understands that you are doing this together.
Actually the experts say that one needs to avoid saying “I” rather use “we”. Make it a collaborative effort between you and the salesperson.
When to haggle or bargain?
There are limits to what you can haggle. For example, you cannot haggle in a supermarket as the prices are fixed.
In this part of the post, I will discuss situations where haggling or bargaining works.
The obvious places where haggling can work include, flea markets, car-boot sales, traditional markets, etc.
In other words, haggling or bargaining works for one-off items or second-hand items.
This is because usually there is no fixed price for these items. You basically have to agree with the seller on the price.
This, therefore, offers an opportunity for us to get some amazing bargains if you hone your haggling skills.
Related: How To Make Money at The Flea Market
Below are some of the obvious ones.
Estate Agent fees
Most people are not aware that there is always some flexibility in estate agent fees.
It has been shown that people who shop around and negotiate estate agent fees have been able to get discounts that are as high as $450 for an average priced property.
It is therefore important that you shop around for estate agents and play their charges against each other.
If you can use the tips presented in this post you can save a lot of money on these fees.
Estate agents make billions of dollars from the sale of properties and if you play your cards well you can get a piece of this revenue.
Motor insurance is probably one area where the majority of us are paying more than what we should be paying.
This is because we assume that the insurance brokers are in our corner and are trying to get us the best deals.
Insurance brokers make more money if they extract more from you.
You, therefore, need to start fighting your own battles and pushing your brokers for better deals.
One can do this by shopping around and using that information in extracting better deals for yourself.
We seem to have lost the art of haggling or bargaining for good prices and have as a result ended up paying more for stuff than we need.
It is time to go back to our roots and re-learn this art and save money.
If you master this art I can guarantee that it will save you lots and lots of money. You can then use the savings for other things that matter to you.