I come from a long line of bargainers. I can vividly remember my mom asking for discounts and specific prices at an athletic store picking out shoes for my brother and me. My dad even once sent her to get a good price on a riding lawn mower.
Not only did she exceed his expectations, she somehow managed to get the dealer to throw in a new pair of blades, too. Dad returned to the store to pay extra because he felt like she had done her job a little too well.
I’m sure my mother picked up her fantastic negotiation skills from her father, Hubert. Hubert A. Pound spent many a day on the road as a traveling salesman. He knew how to both drive a hard bargain and settle on a price. Through our 21st Century eyes, the notion of offering less than the sticker might seem socially awkward or even rude. However, knowing when you should negotiate the price of goods and services can save you thousands of dollars over your lifetime.
There’s an art to striking the middle ground, though. You need to be wise about your price, your approach and your manners. Coming on too strong can often backfire. Accepting the first answer usually isn’t your best bet, either. And there are times when you should shell out the money for the price marked, leaving arguments behind. Here are five major categories where it pays to negotiate.
Medical bills
Receiving a bill from a lab, doctor’s office, or heaven forbid the hospital makes most of us break out into a cold sweat. A jumble of letters and numbers make up codes that might as well be written in a foreign language.
Once you’ve sorted your account and know it’s correct, it’s time to get down to business. Many medical billing companies give a 10% discount (or more) to those paying their bills in full. Even with smaller bills, this can make a big difference.
But especially when it comes larger bills, it’s smart to pile up cash and pay off the entire thing at once. If you have less than the full amount, let them know how much you can afford to pay at once. It may not be enough, but you’ll never know if you don’t ask.
If you’ve faced economic hardships due to your illness or injury, you can also ask if the medical facility has any special programs to help defer costs. Lastly, you can request an interest-free payment plan. You may not receive any special discounts for this final option; however, you won’t feel the extreme brunt of a huge bill.
Credit card rates
Of course, you know that I’d prefer for you to never have credit cards. However, if you currently are paying off an account, it’s a good idea to renegotiate your interest rate. The interest on credit cards compounds daily on unpaid balances. Those percentages may seem small at first but their impact packs a punch.
Call your credit card company to see what you can do to lower your interest rates. Are there programs you can sign up for that help you along that path? Your particular card may offer a rate reduction when you sign up for an automatic draft of your payment.
Take excellent notes anytime you’re negotiating over the phone with anyone. Write down the dates, any promises made and the individual’s name. Ask for a number where you can call them back in case the discount doesn’t happen. If they can’t give you a discount or reduced rate, ask to speak with a manager to further plead your case. Finally, request that a written agreement of the reduction in rate be mailed to you.
College tuition
Currently, I’m in a season of learning about the process preparing our oldest daughter for college. On my Queen of Free Facebook Page, I asked people who have already walked this road to chime in with wisdom. I’m so glad that I did.
One woman encouraged me not to accept the first offer given by a college or university — especially if it’s a private entity. Ask if there are additional grants or scholarships available. Check into endowments, too. Many other followers agreed with this idea, sharing their personal experience of institutions helping them find more merit- and need-based dollars once they asked.
Large used purchases
Cars, houses, furniture — these items require a major investment of your finances. Begin by doing your research well and knowing the original retail price. Take things a step further to evaluate the resale value by consulting resources such as Kelley Blue Book.
Inquire if the seller has any flexibility of price. Be prepared with a specific amount you’d be willing to pay. Don’t be rude and realize it may not work out.
Car insurance rates
Whether you found your insurance through the Internet or use the wisdom of a local agent, your yearly price tag can creep up on your budget. If you’ve set the bill to autopay or cut a check without really reading the small print, it’s time to reevaluate.
See if you can gain any benefits (and a lower price) by bundling plans for auto, home, and/or life insurance together. Ask if there are safe driver or good student discounts. See if you can secure lower rates by being a loyal customer or because you’re a veteran.
Investigate the rates of smaller regional based groups over the big names you see on TV. You can often get a much better deal with a solid company that doesn’t have a catchy jingle or celebrity spokesperson.
In the end, you don’t need to argue over the price of every single item you purchase. However, it never hurts to ask, especially when you’re shoveling out big bucks. The worst a retailer, company, or seller can say is “no.” If they end up agreeing to a lower price, be wise enough to do something with the money you save. I’ve always believed you can change your world one penny at a time. Let’s just say your world changes much more quickly if you add a few twenty dollar bills to the mix, too. Always have a plan for moving extra funds toward paying off debt or additional savings goals.
I’m not sure I’ll ever be as good as my mom when it comes to negotiating a deal. But I’m going to try to live up to her legacy.
