To Save Money Get in the Habit of Bargaining

By Elliot Raphaelson

Consumers can negotiate better prices for just about anything, but many don't like to do it because conflict is uncomfortable. Once you succeed, however, it will be habit-forming, profitable and much more comfortable. Negotiating became second nature to me because for many years I was a merchant, buying, selling and negotiating at the Englishtown, N.J. flea market, one of the largest in the Northeast. I have found that there are virtually no limits to the variety of products and services you can successfully negotiate for, leading to considerable savings.

Here are some ways you can save money:

Negotiate lower fees for Internet and phone and cable service

An acquaintance mentioned she was paying $19 less than we were for monthly Internet service -- with the same provider. I called the provider to complain, and they immediately dropped the monthly cost. Later, I called to cancel the service, and they told me I could continue the service at no cost. It was apparently more important to them to be able to claim a large base of customers than to collect income from some of them.

Ask to collect on obsolete offers

Last year my wife, Carolyn, and I were given a generous gift card for a local restaurant. We used the card, had an excellent meal, and filled out a card for future promotions. We subsequently received a $50 gift card with an expiration date at the end of November. We'd forgotten about the card until some friends suggested we dine there on New Year's Eve. We agreed, and remembered the gift card. We were about to throw it out, but we decided that we had nothing to lose by asking whether we could use the card despite the expiration date. We were pleasantly surprised when the restaurant said yes. We had an excellent New Year's dinner at a top restaurant for under $50.

Complain about bad service, and report good service.

My son is a frequent restaurant customer. He never hesitates to write the company documenting any problems. Nor does he hesitate to pass along compliments. As a result, he almost always receives some sort of compensation. What surprised me is that he even receives rewards when he is complimentary. Never hesitate to make a legitimate complaint, or to compliment good service.

Develop good relations with salespeople

My wife has made strong relationships with salespeople at her favorite department stores. This habit results in many benefits. For example, she often finds an item she likes that is overpriced. She then asks the salesperson to contact her when the item goes on sale. In most major department stores, salespeople work on commission. It is to their advantage to develop warm relationships with customers. It is common for a salesperson to call us announcing a sale on a specific item. Sometimes, Carolyn will make a purchase a few weeks before an item goes on sale. Even then, she will receive a call telling her she will be receiving a credit because of the sale. It pays to develop relationships with salespeople when you show loyalty.

Negotiate with credit card companies

The credit card business is very profitable for financial institutions. As long as you have been a profitable customer, these institutions do not want to lose your business. Therefore, they are willing to negotiate interest rates and fees. Unfortunately, a significant percent of credit card users do not pay their balance in full each month, and end up paying interest on their balance. Try to pay your balance in full each month, but even if you can't, you can still negotiate a better interest rate. If your credit rating is good and you are receiving offers from many other institutions, your existing creditor may very well match other offers. You can also negotiate the elimination or reduction of other fees. If you sent in a late payment, for example, if you have a good payment record, most issuers will waive the fee. Don't be afraid to negotiate. You have nothing to lose.

Please send me innovative examples of how you saved money on products and services to share. I will share your good fortune with other readers.

Personal Finance - To Save Money Get in the Habit of Bargaining