by A. Luminium

Created on: May 13, 2008   Last Updated: November 07, 2008

You can negotiate a better deal, but it requires patience, self-discipline, and knowledge. A good negotiator has the ability to walk away from the deal. When you have no options, you are in a vulnerable position.

To get the best deal, you must shop around. You must take the time to see what else is available. If you are unwilling to explore the marketplace, then you are at the salesperson's mercy. You must always be willing to say "no". If you have to have a product today, you have many fewer options. Reduce your demand and increase your supply and you will find a better price. The more options you have, the more the salesperson will have to come toward you, instead of the other way around.

Salespeople try all kinds of tricks to try to put themselves in a superior position. You must not allow yourself to be manipulated. I once worked for a top negotiator. Every day salespeople would come to his office to try to sell product that the company needed. Sometimes they would go out to lunch. However, this buyer would not allow the salesperson to pay for the meal. He would pay for both! He did not want to be even slightly beholden to the seller and he knew that even a small thing like that gave the seller an edge. So, who do you think had the edge?

This same top negotiator knew his products inside and out, and he already knew at what price point he was willing to buy. Salespeople want to know this number, but you don't have to tell them. Make them tell you their price first, and then you can let them know whether this fits your needs. If not, then you can tell them the price they would need to match to get your business. If they can't match prices, they might be able to make other concessions, like free delivery or a free extended warranty or something else that has value for you.

You have to know your stuff. Knowledge truly is power when it comes to buying a product. The salesperson's interest is in maximizing their own commissions, not necessarily selling you the best product for your needs. You actually might be better off buying a totally different product, but you won't know this if you don't do your homework. The more expensive the product, the more research you need to do. This particularly applies to financial products such as insurance, mutual funds, and other types of investments.

You also need to be able to give the salesperson something they want. To get a better deal, find a salesperson who is "hungry". It may be that buying a car at the end of the month, when a quota must be met, might get you a better deal. At certain times of the year, it is more difficult to sell certain seasonal products. You might get a better deal on a new air conditioner by buying it in the winter.

In summary, to get the best deal, keep a cool head, do your homework, and explore all of your options. You will find the best price.

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