How do you negotiate a product price effectively?
As you're in the process of bargaining with a salesperson, there are some strategies and tricks you can use to lower the price.
We have put together our top 7 tips so that you can get the best price!
Our Tips for Scoring the Best Deals & Prices
- Do Your Research
In our experience half of your work for a successful negotiation happens before you even step foot in the store. You should be thorough and do your homework ahead. That is the best way of ensuring success.
- Know What You Want
This really is vital to a successful negotiation. Don't go into a situation planning to browse around looking out for the item or items that you want. Before you go in, work out exactly what you want. Identify the brand and the model. Choose the colour, the size, and any other specifics that you will need to confirm. Do all of this before you even leave home.
If you want to make informed decisions throughout the negotiation process, you need to be very clear about what you want. It also gives you an air of confidence that can be influential in the final price agreed upon.
- Know the Item’s Retail Value
Make sure you know the price for your required item. Check out different options to make sure you get an accurate price range. Be aware as to whether it’s a bestseller or something that seems to be selling more slowly.
Using this information, have a realistic price range in mind. Don't get too optimistic and go for 50% below the market price. It might be reasonable to aim for a 10% to 30% price reduction.
- Shop Around
Get your online research done and you might also visit similar stores in the same areas. Ask questions about your item and look for a chatty salesperson who will give you vital information. For example, perhaps the item hasn’t been selling well lately, or there’s a glut of inventory on the product. Any amount of information, no matter how insignificant it may seem, can help you negotiate the right price for you!
- Know When to Haggle
Haggling or negotiating is best done without an audience! Do your homework regarding when the store is quiet. You will be far more successful negotiating a lower price if the store is quiet.
It is also a great strategy to negotiate at the right time of the year. If an item you seek is seasonal, look to buy it at the end of the season. A great time for negotiation on many products is right after Christmas. The holiday rush is over and stores have seen an increase in returns. If you are willing to walk away with a display product this is definitely the time to seek that option out.
- Negotiate With the Right Person
It is a waste of energy to negotiate with a Saturday assistant. You need to make sure that you deal with someone who has a level of authority. Managers, supervisors, or senior sales personnel usually have the power to offer you a deal. Do some research ahead of time to figure out who you should speak to.
Once you know who you’re going to be speaking to, try to find opportunities to observe them without getting arrested! This may help you judge how open they are to lowering the price and to what extent they will reduce it.
Go along to the store and see if you can watch how they behave with customers. If you’re able to catch another customer bargaining with them, that’s a golden opportunity to gain insight.
- Be Prepared
Once you’ve done your research, be fully prepared!
- Dress Strategically
Everyone wants to look good, but if you go looking for deals dressed like money is no object, the salesperson may be less inclined to lower the price. You might think they won’t notice, but if they are experienced, they will.
You want to look polished but avoid expensive brand names and accessories. If you dress down while still appearing put together, this will leave them guessing as to what you can and can’t afford.
- Bring Someone with you
They say there’s safety in numbers, we agree that there’s strength in numbers too. Taking a friend with you can put the salesperson at a subtle disadvantage. It may make them more likely to agree to your terms.
If you’re alone, another trick that works similarly is calling a friend for advice while you’re in the store. Many times, the salesperson would rather come down slightly in price than risk losing the sale.
- Take Your Smartphone
Having the ability to verify claims on the fly can be essential to the bargaining process. If a salesperson claims their price is the lowest available, you may know that’s a lie, but the only way to verify it is to pull up a lower price on your phone.
- Set a Budget and Stick to It
Have a budget decided when you enter the shop. Don’t change it no matter how tempted you might be.
So what to do if the salesperson makes an offer that’s above your budget but sounds too good to resist? Ask if you can come back the following day after running the numbers against the rest of your expenses. That may encourage them to go lower there and then.
If your negotiations don't work, that's okay. Try again at a different store. After all, practice makes perfect!