“Can you work with me a little on the price?”

“Can you work with me a little on the price?”

That’s become one of my favorite lines to start out negotiating prices…even at department stores! My hubby and I have been practicing the art of haggling, especially lately since we are looking for some new (to us!) furniture and other big ticket items for our upcoming move. It seems we are not alone, according to this article in the New York Times. More and more people are negotiating prices even at big box and chain stores. And some stores are responding, by giving salespeople more leeway to cut prices. If you’ve never haggled before, this is a great time to start. Retailers are worried about the impending recession and therefore might be more receptive to selling at a lower price. Here are some useful tips I’ve picked up along the way to give you a jump start:

• Be super-friendly! A smile goes a long way. Don’t be confrontational.
• View your haggling as a win-win. You win by getting a lower price, the store wins by selling merchandise (and the salesperson increases their numbers). Don’t feel guilty! But have integrity; don’t lie about why you can’t pay for something or give a phony story.
• Do your research: check out Consumer Reports or look online and find similar items. Decide what price you would be willing to pay before you go.
• I like to start out by quietly looking at the item until a salesperson comes up and says “Can I help you?” Then say something like “I really like this couch, but I really can’t spend that much. Can you come down a little on the price for me?”
• Ask to speak to the manager or someone who can authorize a deal.
• Shut up! (I learned this one from Dave Ramsey)! Don’t give away your hand. After you ask them to come down on the price, stop talking! Your silence might make the salesperson or manager uncomfortable enough to keep lowering the price!
• Some easy ways to get discounts: ask about getting the floor model. Ask if there is any slightly damaged merchandise or overstocks they want to get rid of? Ask if the item has been or will be going on sale soon, and if so can you get the sale price now?
• Never underestimate the power of cash! I just learned that stores are charged between 2% (for large retailers) and 8% (for small stores) credit card transaction fees. So if you offer to pay cash, you have a negotiating chip for a lower price because they will save that fee. Also, if you only have $300 (or whatever amount you have pre-determined that you want to spend) in cash, you can’t be talked into spending more!
• Be ready to walk! Walk-away power is the best negotiating tool you can have. And be ready to follow through! When you are spending cash (see above point), it’s a lot easier to walk away.

Recently, I was able to bargain down the price of a dining room set at Sears by asking to buy the floor model. But you know what...after counting out my lovely wad of cash, I decided I'd rather keep my more of my money, so we walked away. Instead, I bought a very nice table, 4 chairs and a matching hutch on Craigslist for half the price!

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