Two very scary words: Holiday shopping. It strikes terror into the hearts of men, and probably most women. Another scary word: Budget. It’s like a frustrating reality show; you’ve got to find the right gifts for people, try not to break the bank and get it all done by a certain date. What would you think if I told you one secret to staying within the realm of your checking account is to negotiate with shops when you buy gifts? Yup, even negotiate with the big time chain stores. Is it really possible? And are you up for the challenge?
As GalTime’s Consumer Watchdog, I asked personal money management expert, national radio personality and bestselling author of The Total Money Makeover, Dave Ramsey how this can be done. Dave replied, “Easy, everything is negotiable.”
GalTime:
If everything is negotiable, how do you negotiate at mainstream chain stores for clothing or shoes? How would you go about wheeling and dealing there?
Dave Ramsey, Money Management Expert:
You simply have to have the nerve to ask. Bargain hunting is an effective way of saving, but often if you are careful and don’t forget to ask for a lower price, even these retailers will sell cheap. You can ask a commissioned sales clerk how much she will cut the price if you buy several of a particular item. You have to act and ask in order to receive a deal.
GalTime:
What about shopping at mainstream, large, national electronic stores? What are tricks to negotiating there?
Dave Ramsey, Money Management Expert:
Use the power of cash. There is something highly emotional about flashing cash when making a purchase. People react to the surety and the instancy of cash. If you are buying a $2,000 computer, you should use cash as a visual example of what you will pay for it; you will get a discount. You should also say, “if I give you $1,500 for the television, then you have to throw in the delivery (or something) at no extra charge. “
GalTime:
Is the sales clerk working at some chain store going to care if you "walk away"? Or if you pay in cash?
Dave Ramsey, Money Management Expert:
You must be prepared to walk away and not make the purchase. No discounts will be given if the seller believes you are committed to the purchase. You cannot be committed to someone’s product or service before the transaction is complete. Sometimes you must simply walk away to buy another day or at a different store that will give a discount. Also, sometimes you have to ask for a manager to get a deal.
GalTime:
As the holiday shopping season approaches does that give customers any added negotiating power?
Dave Ramsey, Money Management Expert:
Consumers are able to negotiate at any time in the year – holiday season or not. But, you still simply have to ask and be prepared to walk away. Many retailers offer giant sales during this time of year. You must be a smart consumer and be prepared to purchase during that time.
GalTime:
Some people HATE negotiating and being upfront and firm with people--they think it's confrontational and they get nervous about it. How can you psych yourself into actually trying some of these tips?
Dave Ramsey, Money Management Expert:
If you will approach your purchase looking for a way to win for everyone, you will buy things very cheaply. You have to avoid getting buying fever. When you get the fever, you lose all patience and negotiating power. You should pretend that all these purchases are a game and have some fun with it, because the retail people selling you are definitely having fun. The more great buys you get, the more fun you will have, and the more confidence you will have when negotiating.
Here ARE THE COMPLETE LIST OF TIps from Dave on how to negotiate:
Everything you buy is negotiable at some time, at some place and you must find it. Negotiate with everyone. You must negotiate with everyone whether it’s getting retailers to match the price of their competition or by asking to see the discounted products that are not on display in the showroom. The days of impulse buying are over and the days of negotiation are in for the people who want to get control of their financial lives. When you begin the process of negotiating, you should stay calm and use some basic principles:
- ALWAYS TELL THE TRUTH. There is never enough money to be made or lost on a deal to warrant a lack of integrity.
- USE THE POWER OF CASH. There is something highly emotional about flashing cash when making a purchase. People will react to the surety of cash.
- UNDERSTAND AND USE "WALK AWAY POWER." You must be prepared to walk away and not make the purchase. If the seller senses--and he can--that you are committed to that purchase, you will receive no discounts. Sometimes this is not a bluff, and you must simply walk away to buy another day.
- SHUT UP. When faced with a purchase, we sense the inherent confrontation, get nervous, and talk too much. If you will simply shut up, people will talk themselves out of more than they will ever talk them into. You just need to make small comments and let the other person rattle.
- "THAT IS NOT GOOD ENOUGH." When you're negotiating and you're given a price, you should simply reply, "That is not good enough. What can you really do?" You see the price drop, sometimes lower than you would have offered. Instead of your giving a lower offer, you should try using this approach--and see what happens.
- GOOD GUY--BAD GUY. Your wife or husband, who is not with you, should always seem mean to the other side. For example, "My wife would kill me if I took that price." You should always use this (or a similar situation) to negotiate a price.
- "IF I"--GIVE, BUT TAKE. When you reach a point that you must give up something, you need to be sure you take something while you are doing that. You should say, "If I give you $2,500 for that entertainment center, then you have to throw in the delivery (or something) and the sales tax at no extra charge. You must not just give. Instead, you should always make your giving contingent upon your receiving something else in return.
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