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    Fiscal Fitness: Save $157.86 Just by Asking

    The Motley Fool's Fiscal Fitness Boot Camp is in session! Every weekday this month, we'll walk you through a fresh money-saving/money-making tip as we work toward finding $2,000 in savings you didn't know you had.

    A serious customer with cash to spend can really call the shots these days on everything from electronics to housing to a root canal. Really.

    A 2007 Consumer Reports survey found that 90% of customers who negotiated with a salesperson got a price break on at least one purchase over a three-year period. They nabbed deals on furniture, electronics, appliances and even medical care, netting the best of the hagglers savings of $50 or more. And that was before the economy went all kamikaze.

    In other words, it really does pay to ask, particularly these days when retailers and service providers are struggling to get any cash flowing through the registers.

    But not everyone is comfortable asking whether there's any wiggle room in the price. So today's Fiscal Fitness task is to devise your price-reduction strategy for your next major purchase. (The $157.86 mentioned in the headline is from an example, which we'll get to in just a bit.) Put on your poker face and learn how to ask for a better deal.


    7 tips on negotiating a deal

    Unless it comes naturally to you, haggling is a strategy best saved for big-ticket purchases . That way, you have time to do your research (a must) and will see some serious coin for your efforts. Here are some rules of thumb for negotiating a better price on just about anything.

    1. Shop before you shop

    You won't know whether you're getting a real bargain or a dud deal unless you have some pricing history for comparison. Go online and find out what the going rate is for the item you want. For example, Amazon.com, through its expansive Merchants and Marketplace program, will also provide product prices from various retailers. Then you can use your retail recon to either buy online, or make bricks-and-mortar merchants play good cop/bad cop. Flash your cash and a competitor's lower advertised price (you'll need physical proof) and many stores will match the price. Don't get too cocky, though. Most will only honor coupons or sale prices if they have the exact item in stock.

    2. Make the request at the right time
    Take your cue from the automobile industry, where wheeling and dealing is most prevalent right before sales milestones, such as the end of the quarter, end of the season (particularly for seasonal items like patio furniture and Christmas ornaments), and end of the fiscal year. Getting more granular, you'll get better results by visiting the store when foot traffic is at its lowest -- during the middle of a weekday, for example.

    3. Ask the right person

    Some stores have price-match policies (which is why you want to come armed with a competitor's deals if possible). Best Buy, for example, has a " Price Match Guarantee " where it will match a local competitor's price on the spot if the item is the same make and model. At Staples, they'll match the price or give you the difference within 14 days of purchase . Sears stores will match the price on some items and give you an additional 10% discount . The catch with most is that the "competitor" must be local -- many retailers will not match the price of an item found on the Internet.

    4. Move up the chain of command
    Some retailers leave discounting up to employees' discretion, particularly in stores where employees earn a commission. If the first person you talk to won't budge, ask (politely!) if there is someone else, perhaps a department or store manager, who may be able to make the call. Don't limit your line of questioning to big multi-location retail chains. Mom-and-pop stores are often more willing to meet or beat a big-box retailer's advertised price or provide free add-ons when presented with firm evidence of the lower price and a ready purchaser.

    5. Show that you mean business, but always be nice
    A polite way to ask for a discount is to say, for example, "Is this the best price available?" The answer may be "Yes, that's as good as we can do." If so, you must be willing to walk away (or at least act like it). But don't storm away in a huff or start your negotiation from an adversarial position. For example, instead of saying "This is way overpriced!" say "I really like this item, but this is more than I was planning to spend." Remember, you and the retailer have something to gain in this transaction.

    6. Phone a friend
    If you need time to waffle (and stall the sale in the hopes of getting the best price possible), tell the salesperson that you want to get a second opinion from your spouse/partner/buddy/mother-in-law. The idea of a near-sale walking out the door may inspire them to trot out their absolute best price possible.

    7. Settle for less-than-perfect
    Many stores will give you a break if an item is damaged, dirty or shopworn. Recently I pointed out dirt on a pillow I wanted to buy at Ross Stores (I was putting a different cover on it anyways) and the cashier took 10% off the price without even blinking. Remember to ask whether the discount subjects the item to the store's "final sale" restrictions.

    Save $157.86 just by asking the right way
    As an example, I recently looked up prices on a Maytag Jetclean II dishwasher. I went online and saw that Best Buy has it on sale for $719.10, Sears has the same make/model for $783.99, and Home Depot is selling it for $802.10, but is offering free delivery.

    There are several ways you can play this. If you can get Sears to price match Best Buy's price, and get the additional 10%, you save $71.38 off the Sears price. But you might cash in even more by asking Home Depot to match the deal at Best Buy and give you an additional 15% discount by buying the floor model. That would lower your price to $611.24, which when combined with free delivery (let's value that at $50), means a savings of $157.86 off the total Best Buy cost.

    Or, get something else thrown in

    Price slashing isn't your only bargaining chip. Sometimes you can get a store to throw in free delivery on a large item (easily worth $60 in an urban area), gratis accessories on an electronics purchase (such as a free DVD player), or even a break on the cost of installation.

    Once you start looking, you'll be surprised how often you're in a position to negotiate. Remember, it literally pays to ask.

    Lastly, don't fall for retailers' own tricks to get you to overspend
    Yup, they've got p-l-e-n-t-y of clever ways to get you to part with more than you planned to spend. Don't take the bait! Here's how to resist the siren song of that four-letter word: S-A-L-E:

    · 5 Ways to Stop Buying Stupid Stuff

    · Retail Tricks that Make You Overspend

    · How-To Guide: Spend Smarter


    Get financially fit with The Motley Fool!:

    · Start out with our 13 Steps to Investing Foolishly

    · Join us on Facebook

    · Check out Fool.com


    Fool.com Fiscal Fitness instructor Dayana Yochim usually brings along a bold friend to negotiate on her behalf.

    [Photo: Getty Images]

     

    102 comments

    • John  •  2 years 3 months ago
      SEVERAL YEARS AGO WHEN THERE WAS NO MONEY CRUNCH AS THERE IS NOW I LEARNED IF U CAN SAVE FOR A CAR IN MY CASE A 1 YR OLD CAR AND PAY CASH U CAN BARGAIN. I WALKED IN TO A MAJOR DEALERSHIP IN MY AREA WITH CASH NOT CHECK OR CREDIT CARD CASH AND WAS ABLE TO PRACTICALLY HAVE THE SALESMEN EATING OUT OF MY HAND....... I LOOKED AROUND ALONE FIRST AND NEW WHAT I WANTED TO BUY BUT I DIDN'T WANT TO PAY WHAT THEY WERE ASKING. BY PAYING CASH MONEY I WAS ABLE TO KNOCK OVER 2000.00 OFF OF THE STICKER PRICE OF THE CAR I WANTED. I LOVE TO SAVE MONEY WHENEVER I CAN AND CASH RIGHT NOW TALKS WITH SALES DOWN WITH MOST BUSINESS. AND IF ONE PLACE WON'T DEAL GO TO ANOTHER ONE. I 'VE DONE THIS ALL OF MY ADULT LIFE IT WORKS.
    • David H  •  2 years 4 months ago
      You used the word "anyways" and you are considered a journalist. Do you also type "a lot" as one word and get away with it? Sad...just sad....
    • Dan  •  2 years 4 months ago
      For your example, I understand the part where Sears would match Best Buy's price. But how would you show physical evidence to Home Depot that Sears has given you Best Buy's price + 10% off?
    • BDawg  •  2 years 4 months ago
      Who wrote this crap????? you might get a store to knock off a couple bucks on a discontinued item if it is the last one on the shelf but for top of the line current models stores have MARGINS and prices are nonnegotiable.
      And Mom and Pops can't compete with bix box stores to begin with they are NOT going to wheel and deal.
      All you are going to do is run all over town and spend money on gas and your time with no successful results. The best thing to do is compare prices online and go to the lowest advertised store.
    • boo  •  2 years 4 months ago
      I am sick of these “haggle” articles. It doesn’t work 90% of the time, plain and simple. Sure, I’ve haggled the price down on an item once or twice in my lifetime. But almost everytime it was a discontinued model that they had to get rid of. You have to catch the right manager generally at the end of the quarter and hope that thier sales are low. Haggling generally doesn’t work even if you have the ad for the item you want to price match because models are "slightly" different. Retailers are desparate, but thier store managers don’t really have any incentive to haggle and most won’t do it. I DON’T WANT TO SEE ANOTHER “HAGGLING” ARTICLE AGAIN. ITS NOT TRUE, MOST CONSUMERS CAN’T DO IT BECAUSE THE STORE MANAGER WON”T PLAY ALONG.
    • CJ  •  2 years 4 months ago
      Please take down this article ASAP! This is absolutely ridiculous. I have been working in Major Home Appliance Sales for 5 years and I can tell you, there is no extra discounts on top of the current sales promotions. Asking to speak to someone higher is just a waste of your time, and I am always sure to tell people that up front. Retail stores don't bargain, sure we price match but other than that, NOTHING ELSE.

      P.S. Thank god all you other retail workers are there that agree with me.
    • Uno Tres  •  2 years 4 months ago
      Very misleading title. What are the chances that you can get them to sell you a floor model of an item that other stores are still advertising? Almost None. They need the floor model to show customers. What do you think they are going to do? Break a new one out of the box and use it as a floor model so someone else can request another 15% off of it?

      Also, take your own advice and do some research. Bestbuy also offers free delivery on their washers. Find a 10% off coupon they have all the time and you've got yourself a price of $647 - without having to look like a moron asking them to pricematch Bestbuy and then take an additional 15% off of the price they just matched for the floor model that they wouldn't even sell you in the first place.
    • Lauren  •  2 years 4 months ago
      Attention customers: It is never okay to haggle in a retail store....please stop telling people this! We work just as hard as you, and we need to make money to pay our rent and feed our families, just like you. We have NO CONTROL over the prices that corporate sets, though we will usually give you a minor discount just to shut you up on something that is damaged. Yes, if you whine and complain like a child about an item being scratched (because of customers) or dirty (because of customers), you'll get a tiny bit of money off-and look like a complete jerk, waste our time AND yours, and generally add to the economic stress that is plaguing this country. Congratulations, you saved $10 on a $100 purchase. Whoop-dee-doo.
    • Jackie  •  2 years 4 months ago
      Please stop telling people to haggle at department stores! You can't! Unless the item is a display model or otherwise damaged we can't give any more discounts than we already offer.
    • RJMpc.com  •  2 years 4 months ago
      I have been in retail for over 30 years and am subjected to these requests daily. I hate to say it, but most people who engage in this behavior are fairly rude about it. If you are going to ask, please be nice about it and don't get miffed if you are told no and go stomping mad out the door or rudely hang up the phone. Believe it or not, most stores work on a profit margin that they need to stay in business.

      Also keep in mind that a lot of places that charge slightly higher prices on certain items may make it up to you in other areas, such as better customer service or help after the sale that you will not get at cost-cutters. Try to think of the big picture.
    • Amanda K  •  2 years 4 months ago
      I work in retail and you can't haggle where I work. So don't come in and give me a hard time about money because I barely make any to begin with. Look online for coupons too. Don't give sales associates a hard time.
    • jackm  •  2 years 4 months ago
      I assume then this advice from the motley fool is reciprical. I am a subscriber to the motley fool and I look forward to haggling my subscription renewel when its due.
    • Michelle  •  2 years 4 months ago
      I work retail as well, and our prices are non-negotiable. Yes, there are some adjustments that can be made for an item being a bit dirty or chipped, but sales associates have NO control over the overall prices or sales. In fact, we can get FIRED for being haggled and unnecessarily marking items down. I'm not losing my job to save someone another $5, especially when we run great clearance prices and coupons. Coming up and whining about "item x is too expensive, can you mark it down? $x is too much, can we work something out?" is very irritating and only makes the customer look bad.
    • Kenneth  •  2 years 4 months ago
      You are wrong about the $150 savings. As Matta posted its 10% of the difference, so it will be 71.38 plus 7.14 or 78.53 Plus delivery at Sears. At Best Buy, they will price match delivery to Home depot. so total will be 710.10. Most places will not sell floor models at the discount, because they then put another out to be sold at the discount. PLease get your information straight before publishing. I know thwew facts because I sell appliances.
    • Shellie  •  2 years 4 months ago
      We will never rebound our economy if everybody is asking for discounts for everything.
    • Jill  •  2 years 4 months ago
      I called ComCast cable about four months ago because I thought $80 for cable TV and the internet was too much. I told thatm that I thought it was a rip off and that I could go to Dish network for $24.99 and get ATT high speed for $24.99 and they matched those two prices! My cable and my internet are now just $54 with the taxes included. I've also called my credit card to lower my interest rate from 18% to 5.50% just by telling them that I would like to pay it back but the rate makes it impossible.
    • wmarie  •  2 years 4 months ago
      I was just reading the comment about the people trying to buy a display model but Target not letting them, even though th floor models get thrown away. This SAME thing happened to my grandmother. During December she found this gorgeous Christmas tree at Target, they didn't have it in stock, but they still had the floor model. She asked if she could buy it and they told her no, that it was against store policy. She went to a few outher Targets and looked online but could never find the same tree. She returned to the first target a few days later and the display was gone. She asked them where it went and they told her that it was thrown away! I think it's horrible that stores would actually do things like that! I mean, why can't someone buy a display, is it because they don't want to discount the price? What is the reason, someone please tell me. It's so wasteful!
    • Watersisland  •  2 years 4 months ago
      WOW! An awful lot of proper but dumb people out there. Of course there are merchants that would like you to believe that it is crass to ask them to lower the price---they want as much of your money as you are stupid enough to give them. Guess those merchants have done a pretty good job. They've even convinced some of the consumers to advocate to the public on their behalf----"It's RUDE to ask or attempt to get a merchant to lower their price". Either that or some very low life merchants are attempting to convince you that even consumers believe you should give the merchants all your money.

      Bottom line...if there is a salesperson involved---they are there to make a sale! Make them earn their money, AND, save as much as possible. Don't be intimidated(unless you think it is proper to pay more than you should). Most durable goods are highly overpriced. Doesn't matter what products---T.V.'s, shoes, newspaper subscriptions,----even a loaf of bread. The Art of the Deal. Merchants that won't deal, go over their heads or go somewhere else---somewhere that WILL cut you a deal(I call it profit sharing). Merchants that won't cut a deal won't get ANY profit. Consumers that are uncomfortable with expecting a respectfully lower price.....Come by MY business---we love idiots like you. We don't think you should get a break either.
    • djrocks  •  2 years 4 months ago
      I have been in retail for many years and I've had my share of hagglers to say the least. For starters, most of the people doing the haggling are the ones that have the money and can afford it. Most hagglers who get you to mark the price down are going to think the can haggle everytime they stop in the store and tell there friends to haggle too. I understand if its the end of the season and you have alot of inventory left and need to sell it off. That is what sales and clearance is for. So to all the retailers out there that are sick of these customers politely tell the prices are what they are.
    • A Yahoo! User  •  2 years 4 months ago
      This works in Mom and Pop stores and price matching stores, but it doesn't work in a lot of chain stores. Most big chain stores cannot do any negotiating because corporate sets the prices.

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