A Buyer's Guide to Haggling

I learned everything I ever needed to know about haggling from my Dad. It was in the early 1980's and he was buying a yellow Nissan Sentra. We waited at the car dealership for hours while he talked to the salesman. My mom and I were beyond bored and truthfully sort of embarrassed. Can you imagine being a teenager and waiting for your old man to finally agree to a price and just buy the darn car already? At the time, it felt like we would never get out of there, but looking back, I am glad I was paying attention because he was a master at getting a good deal. As the economy has worsened and more businesses are doing their best to say in business, economists agree that the art of haggling is not just for buying cars and houses and can be used for all sorts of transactions. I have friends who have bargained down hospital bills, saved on furniture and appliances, and even cable and Internet services.

Haggling 101: The Fine Points of Asking

One of the first things a buyer needs to know about negotiating a price is that it is essential to gain a rapport with the salesperson. Start with some small talk and be polite and friendly. Don't think of haggling as "trying to get something for nothing", but as a tool for getting a discount or some add-ons for something you intend to buy. My dad was always polite and friendly and did not view his "dealing" as anything other than fine tuned negotiation. He wanted a new car, the lot needed to sell cars and the salesman needed to make a profit, and all that was needed was for everyone involved to come out of the room feeling good about the sale. He wasn't shy about saying no, if the price quoted was higher than expected and he wasn't against investing his time and having to get up and walk away if he had to. He understood the power he held as the buyer.

Hurry Up and Wait

Which brings us to the second point of haggling; be prepared to wait for a bargain. Ask if the item is going on sale soon, or if there are any coupons or store discounts available. If the store does not offer regular discounts, don't just throw in the towel and pay full price. Once you have built a little relationship with the salesperson and you are quoted a price, just relax and see what happens. Silence is almost always in a customer's favor. When a salesperson sees that you are seriously considering buying something, they will invest more in trying to wrap up the sale. You might really, really want something, but exercise your best "poker face" and act like you are only fairly invested in wanting it.

Cash talks!

In a society that is largely fueled by credit, using cash can sometimes give you more leverage. We've all seen furniture stores advertise "no payments for 18 months" or other credit offers similar to that. Ask if you can have a discount for paying "cash on the barrel". Or if the store owner or manager balks at that, ask if they will add in something else to compliment the sale. Virginia M., of Medford Oregon was buying a new sofa and asked if the store would throw in a lamp since she was paying cash. After a brief negotiation, the store manager approved the deal and she has a beautiful $50 lamp as a bonus. She says, "I just asked. I figured I didn't have anything to lose since I was buying the couch anyway. Sometimes you win!"