Haggling & Negotiating : Getting You The Best Deal
This week I took part in a Google Hangout regarding negotiating the best deal for you, did you know potentially you could save up to £2500 per year by haggling and searching out the best deal!
You are warned this is rather a lengthy post but I want to help you to become as inspired as I am about saving money and getting some cracking savings!!
Hosted by Webuyanycar.com and David Edmundson-Bird, Programme Director for Manchester Metropolitian University’s Multi-Channel Retail Masters, I’d like to share some great tips with you which was discussed during the hangout;
Face-To-Face Sales Tips
- Salesmen/women are your friend, approach with a friendly manner.
- It’s best to have a knowledge of the item of which you are shopping for, have prices in mind for other retailers and also a price in mind of which you would like to pay.
- The ticketed prices are only a “recommended retail price” (RRP), this is not the price the retailer pays – there is a profit margin of which is your invitation to barter to bag your best deal.
- You have the right to walk away, never haggle on a purchase you need there and then. Take your time.
Car’s are where you can get your biggest saving on any deals available, FACT! Whether it’s a new car, pre registered or used there are always good savings to be had.
I’ll let you into a secret, I use to work for a car dealership, I didn’t sell, I did the administration. I know roughly what profit margins are in vehicles. One point which was made during the hangout tonight, the bigger and more expensive the car, the greater margin for negotiation.
- I’ll start with a fun fact, women, (and this has been proven) are more successful at getting a better deal as we are more friendlier! Can you tell I like this fact ALOT??
- Ideal shopping days are ones which fall after the weekend (Monday to Wednesday’s) and also coming up to month ends, I’d say the last 5 working days of the month, salesmen will literally throw the car at you if they could, it’s a sale ticked off their target which earns them more commission and a bonus (if they make target).
- Also accessories, haggle for mats and flaps (mud flaps) thrown in the with deal free of charge and always ALWAYS make sure the vehicle has a full years service/MOT completed. That way you know your driving your vehicle out of the garage in tip top condition!
- If you fancy taking your negotiation skills to the next level, see if you can get the next years service thrown in as part of the deal. Some garages will have offers on vehicles (especially new) where your vehicle comes with 3 years servicing… in that case, try and extend it to 5 years! – Don’t ask you don’t get remember!
Pre Registered Vehicles
All dealerships (not just salesmen) have targets to meet for registering new vehicles, if come a quarter in a year where dealerships haven’t met targets for registering vehicles they will basically go out and register vehicles to themselves. These vehicles then help dealerships reach target which earns them their bonuses for meeting targets.
What happens to the vehicles then? I hear you cry.
Simple. They need to be FLOGGED and quick. Its stock clogging up their sales pitch and their compounds. If you are in the market for a car, have an idea of what vehicle you are looking, don’t overly mind about the colour and complete spec then these are the babies you are looking for! From the moment these vehicles are taxed their are depreciating in value, they are ageing although they are not being driven. I’d really recommend looking at these, these are unwanted vehicles by the dealerships and they really want rid of them, really get your haggling motors in to gear and bag yourself a real bargain!!
Don’t buy an old car thinking it’ll be cheaper to insure – IT WON’T! As pointed out by David an underwriter is more likely to assume you would me more careless and more of a risk, not because times are hard and need a cheap car and quick! This is more of a common option for younger drivers who have just passed their test, I’d really put time and effort into looking a newer vehicle (no more than 5 years old), haggling the price of the vehicle and bagging cheaper insurance. Its a no brainer!
A fact I never knew until tonight, the quietest time to negotiate insurance quotes are October & November. This is traditionally the industries slowest months and staff are under pressure to hit targets… so try again for end of the month during those two months.
This is a part I am looking forward to trying out, ClearlyDaddy’s mobile phone will very soon be up for renewal and I know with us being a family of gadget geek’s he will definately want the latest iPhone. Having already shopped about I know we will have to fork out a small fee for handset charge where ever we look, a price I do not want to pay. But again using most information pointed out above in the cars section, the salesmen will be looking to make their targets, and will do anything to sell you a phone and new contract, remember its sales targets to these guys, not the money they bring in!
If you are like me, feel a little un-nerved about speaking to a sales person face-to-face, then ring them up but immediately go for the option of disconnection (aka customer retentions). These guys hold to power to give you basically what you want (within reason) whilst you threaten to leave their provider and go elsewhere. Never NEVER go for upgrades, and tell them what you want, because they don’t hold that power, go to retentions, give them a sob story “I can’t afford this or my husband/wife would go mental if they knew I spent this much on that” and whilst remaining friendly and threatening to cry on the phone I promise you, you will get what you want.
I now have 2 options, both I am willing to try out. Either we contact our existing provider when the time is available for us to upgrade and go straight to retentions threatening to take our contracts elsewhere unless we upgrade our handsets for free. Or contact the provider we will be wanting to transfer too (in this case, Virgin Media) and haggle again for free handsets and cheap contacts. I am an existing customer with Virgin Media so they would love to win the contracts of not just my handset but also my husbands. These are both avenues I will be willing to explore too, especially knowing that Virgin Media would just love to buy me out of our remaining contracts too.
This is something I’d never really thought about until the hangout, I’d never thought about haggling prices in a restaurant.
Make Monday & Tuesday your new Friday & Saturday. Call in advance to negotiate and ask them to off their lunchtime deals on these traditionally quieter nights. Also take advantage of January, postpone your Christmas do celebrations until the New Year, you will be able to negotiate savings – restaurants will do anything for business at these quieter times!
A lunch times, delay your lunch as long as possible, try any grab your lunch at post-peak times when food it being threatened with being thrown in the bin. Perishable items are items which are really wanting to be sold so really focus on them. Items such as crisps or bottled/can drinks will not be in such a rush to be sold.
Having the latest gadgets doesn’t pay, it wastes money and its a sure fire way of companies making money out of you. For example mobile phones, when a manufacturer releases a new model the previous models will be in desperate need of being shifted.
Same goes really for all electrical items.
If you are looking for a package holiday go looking at the high-street travel agents. Make sure you look smart, enquire about prices for upgrading rooms, board basis’s and transfers build up a much information to them approach your agent with an offer you would like to pay. Also be flexible, you can get a better deal on a 3 week holiday compared to a 2 week, and a hefty discount on a 2 week holiday compared to a 1 week.
If you have any hits/tips which you would also like to share please feel free to comment below and we can all work together to save money.