Tips on Negotiating to Save Money

In business, you dont get what you deserve, you get what you negotiate

. - Chester L. Karrass Many times when were trying to save money we overlook the powerful strategy of negotiating to get a better deal. A business transaction normally involves the consumer asking for the price and agreeing to work with it, or walking away from the deal because the terms are not suitable. Were often afraid or embarrassed to negotiate to get a more advantageous arrangement. Last week, I attended an intensive seminar organized by Peak Potentials, which revealed street-smart tactics to help business people get ahead. One of the topics we were trained on was the art of negotiation. By testing the simple strategies we learnt, in the real business environment around the seminar location, we discovered how easy it was to negotiate and save a lot of money on practically anything. T. Harv Eker, CEO of Peak Potentials pointed out that negotiation is not a talent that youre born with; anyone can learn the skill. Here are some of the negotiating strategies that he outlined: 1. Ask For What You Want It might sound too simple; but in order to get what you want you really just have to ask for it. Many people miss out on great deals because they have never thought of asking the shopkeeper for a discount or improved payment terms. Whenever youre shopping, always be willing to ask for something better than whats offered. A key rule is to never negotiate with anyone who doesnt have the authority to give you what you want. Always ask politely to speak to the person with the true decision-making power. 2. Create Affinity Creating affinity is the ability to build a relationship with people and get them to like you. You should try to create affinity before, during and after the negotiation process. So, how do you get people to like you? First of all you need to ask sincere questions to discover what you might have in common. People tend to be more relaxed with you if you have a shared interest. You should also create an environment that is positive for both sides, by stating your win-win intention up front. You let the other party know that you would like to come to an agreement thats mutually beneficial. Most importantly, never personally criticize your negotiating counterpart. 3. Create A Reason To Negotiate You have to find some point that is going to entice the other party to want to negotiate with you. Whats in it for them? As long as you can give them a good reason, they will negotiate with you. Some examples of good reasons are: - The item is damaged or has a flaw and should be sold at a discounted price;

- You will buy in larger volumes if the price is attractive;

- You will bring more business in the future by coming back and bringing your friends and associates;

- You offer to pay in cash instead of using credit or debit cards, to save them money;

- You ask for special attention- something about your situation might be unique and you could benefit. 4. Dont offer first Always try to get the other person to make the first offer. You should never make assumptions about the situation that the other person is in; they could be willing to give you a better deal than you think. If you make the first offer, youre really negotiating against yourself by showing what youre willing to pay. According to Eker, the seven magic words in negotiating are, Whats the least you could live with? 5. Create Competition Its important to gently remind the other party that there are other places where you could take your money. You could drop names of other companies that you are discussion with, or tell them that you are going to check out the competition to see if they will give you a better bargain. However, tell them that you would love to give them the business, if an agreement can be reached. 6. Use Weakness As A Strength Dont be too pushy when you are negotiating, even if you might have the upper hand. People generally dont like dealing with persons who think they are smarter than everyone else. It has been shown that a friendly, polite shopper in genuine need will get a break faster than an obnoxious, demanding person. As Eker pointed out, Help me are two very effective words when trying to get people on your side. Try out these strategies the next time you go shopping or whenever you need to negotiate with a business place. You might be surprised at the results! Copyright 2007 Cherryl Hanson Simpson

Tips on Negotiating to Save Money

By: Cherryl Hanson-Simpson

POST COMMENT

Can we trust debt negotiation attorneys? Has Communication Giant Virgin Media Forgotten That Communication Is Vital To Their Business? ERR Your Way to Negotiating Excellence 5 Smart Tips to Ensure Successful Debt Negotiation 6 Must Know Tips To Negotiating Your Home Purchase 3 Negotiating Tips to Get Paid to Speak Unlock The 4 Keys To Modern Selling Negotiations Safe Pearl & Discount Pearl Are Secure What You Can Do When Buying Wow Accounts Successful Sales Strategies Avoiding The Ping Pong Alternative Best Practices In Negotiation: How to Master The Art of Everyday Negotiations Declaring Bankruptcy: Not A Good Option Is There Any Room For Negotiating Shipping Rates?