When you are purchasing a large item, like a car, furniture, etc. you usually have more room to haggle. Keep in mind that the person with the most information and patience is going to get the best deal. If you’re shopping for a large ticket item, be sure to do your homework and know what the going rate is for your purchase. Don’t “fall in love” with the purchase, because a seasoned salesman will sense this from a mile away. They know you WANT it, and will be less willing to negotiate with you. This mean you have to have Walk Away Power! Be willing to walk away from any purchase that doesn’t make sense for your budget. Have a maximum price in mind before you enter into negotiations over a large purchase. Cash is a great bargaining tool. The salesperson won’t be worried about if you will qualify for financing if you’re paying with cash.
What do you do if the sales person absolutely will NOT come down on price and you want the item? Try the “Add-On” technique or the “If I Take Away” technique. I’ll give you a personal example of how the “Add-On” technique works. Six months ago, I was looking at a year-long coaching / education program called The Referral Institute to grow my business. The class is several thousand dollars, which includes four one-on-one coaching sessions with the instructor. The normal process is to be billed a certain amount monthly. Since I had the cash in my business account, I asked if there was a discount if I paid the entire class fee up front. The instructor wasn’t able to give me a discount, however she said that if I paid the entire class fee up front, she would give me four extra coaching sessions for free (a $400 value). This was a win for both of us because the instructor received cash in hand up front, and I was able to take a tax write off for the entire class for my 2013 taxes, AND received extra coaching. So, if the price doesn’t go down, what can the seller throw in for free to make the deal a good one for you? Maybe it’s free delivery and set up, or a year’s worth of free oil changes.
How does the “If I Take Away” technique work? Let’s say that you’re buying a used boat and it comes with all kinds of extras, like skiing equipment, life jackets, and a spare cover. If the person doesn’t want to come down on price – and you don’t need the extras – you can say, “If I take away the skiing equipment, life jackets, and spare cover, what’s the new price?” Why pay for options or extras that you don’t need?
I encourage you to try one of these negotiating techniques the next time you’re making a substantial purchase and see what happens! And don’t forget to check out “The Art of Negotiation, Part One” for tips on negotiating every day items. You might be surprised how open sellers are to giving you a better deal. Do you have a negotiating success story? If so, tell me about it below!