This week in Dave’s Financial Peace University was all about getting Bargains! Very fun!
The keys to Win-Win Bargaining
Now, first rule: Don’t rip anyone off. Being thrifty is not an excuse to lie to people to get your way at the price you want. A seller isn’t going to just give you what you want for less than they paid for it, because they won’t stay in business very long if they do. And it’s just rude to expect them to. But, that doesn’t mean you can’t have a win-win deal every time.
He gives 7 techniques for negotiating. Number 1 is to always tell the truth. He talked about the book The Millionaire Mind (which I now want to read) which reveals that the most common denominator between the millionaires that are studied in the book is integrity. I think that’s pretty amazing and a strong testimony to the way we should be conducting our lives in business and everything else in life! When selling a car, tell the seller what the problems are, etc.
Number 3 is of course maintaining walk away power. If you can walk away, you can keep control of yourself and your emotions and you won’t get taken advantage of.
Number 4 is “Shut up!” Now this one is probably my favorite. He said that he went to a car dealer just for fun and started looking a car. When the salesman approached, he acknowledged him, but didn’t say anything. The salesman kept talking, and talking, and bringing the price down lower and lower, and then he ended up telling Dave that the car had been in an accident and brought the price down lower! All because Dave kept his mouth shut! I don’t know about you, but this seems very intriguing to me. I don’t make many big purchases, but when I do, I’m going to try this!
Now, I’m not sure these techniques will work at the mall, but you should be able to negotiate if you’re purchasing an appliance or furniture or buying from an individual, garage sale, flea markets, etc. Just ask for a lower price and see what you get. If you don’t do well the first time, that’s OK. Just try again! You’ll get the hang of it!
Many people shop at thrift stores or consignment shops and get really wonderful clothing! And don’t forget department stores always have sales and coupons too! My favorite sale rack right now is at Gap. They mark things down so low and then take an extra 25% off! You just have to watch for it. It is so easy to update your wardrobe on a budget!
Photo by Chiot’s Run
Do you have any tips for bargaining a win-win deal?
{ 4 comments… read them below or add one }
don’t forget… the power of using cash.
I have attended a Dave Ramsey weekend and really enjoyed it.
I don’t believe you can go wrong if you politely ask if the seller could take something off the price, even in the department stores. I have done this many times, at first I was surprised how often they would lower the price, sometimes surprised by how much. Especially larger purchases like you mentioned. Silence is a killer for a salesman who wants to move a product.
Thanks for sharing.
Bryan Sr –
You ask in department stores?! Wow! I may have to try it. I thought the people running the registers wouldn’t have the power to make that call, but it’s awesome if you are saying they do!
Yesterday I was in Target and found a pair of jeans that I saw at another Target for $5 cheaper. When we went to the register, I told the guy and he took the $5 off! Lesson learned: It never hurts to ask.
Linda, glad to hear that you’re having fun and learning from FPU!
I don’t have tips on bargaining a win-win deal as far as making a purchase is concerned, but this got me to thinking about negotiating salary in a win-win way. Some of the methods are similar to the tips you suggested in getting a win-win bargain.
For instance, a good tip in salary negotiation is to get the employer to state the salary they’re willing to offer first. Once, they give the salary, you should “shut up” similar to your technique # 4 above. When you do this, you start to negotiate based off your researched salary range for the position. At the very least, you’ve got them to state the minimum offer they’re willing to hire you for.
You should also interview with several companies and try to get mutliple job offers. This way, when discussing salary with one company, if things don’t work out, you can “maintain walk away power,” similar to your technique # 3.