Expert: Consumers Should Negotiate More On Price

Consumers who go to a used car lot or a yard sale expect to haggle on the price, but what about at other venues of commerce?

Charles Lankau, a business professor and expert in negotiation at Wake Forest University, says in this economy, consumers should be assertive when shopping for just about everything.

“As a consumer in today’s economy, people need to ask themselves, ‘Am I about to spend some money?’ If the answer is ‘yes,’ negotiating is almost always appropriate. Price, terms, perks or extras—most of the time they are there if you just ask.”

Negotiating tips

Some people relish the idea of driving a hard bargain, but most consumers tend to shy away from trying to negotiate a lower price or more attractive terms. For those consumers, Lankau offers this negotiating tips:

• Give yourself permission to negotiate. Bargaining is one of many valuable budget-stretching tools available. Use it.
• Focus on the result, not on any misplaced embarrassment for asking. Think of how good it will feel if you get something for your efforts. Even if you are successful, it’s a win-win situation. In most cases, the seller will still be making a profit.
• Touch a chord. Choose your words carefully to reach the emotional side of the person you are dealing with, for example: ‘I’m just not sure I can afford this. Can you do any better?’ Practice different approaches in the car to see how they sound.
• Practice. Just like in sales, keep trying, and your ‘ask’ will improve.
• Track your results. Keep a note card in your glove box and jot down every time you purchase an item for less than the asking price. It adds up! Seeing your savings grow is a great motivator.

Everything's negotiable

Lankau says large purchases, like cars and homes, or competitive services for television or telephone, are expenses where people expect to negotiate, but deals can also be found in retail shops. And it's clear Lankau learned his negotiating stills at close range.

“My mother never hesitated to point out a flaw, if there was one, in a blouse or sweater, and she almost always received at least a ten percent discount.” Lankau said.