Dear Friend,

The word “haggling” conjures up images of my dad standing on the side of the road years ago – in the pouring rain – driving down the price of a huge wooden hippo my mom had her eye on. It also brings back feelings of guilt I squashed down on a trip to Zanzibar: Where – as my guide book advised – it’s an insult NOT to attempt to drag the price of an item down – no matter how poor the family is.

These days, whether you’re haggling for a great deal on a Persian carpet, a dishwasher or getting your geyser fixed, entering into price negotiations is what smart shopping is all about.

But like everything, to get the lowest price, you need to follow the rules. Today, I’m going to give you the top four rules of haggling and show you how you can use them to get the best deal every time.

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Four tips to help you knock off costs and learn to haggle like a pro…

Tip #1: Pick your battles wisely

The first thing you need to know is when you can and can’t bargain. For example, you can bargain at a flea market, large appliance or furniture store, car dealer or with your plumber. But, you’re unlikely to be able to do so at your local supermarket or favourite clothing store (unless, of course the item’s damaged – although this often means they won’t sell it to you at all). 

Tip #2: Keep your mind on the prize (or is that price?)

The goal of haggling is to come out of the deal with a big smile on your face knowing you paid a fair price for the product you purchased. To do that, you need to remember three very important things:

*** Do the research – before you can work out a fair price, you need to arm yourself. So go online, compare prices, save ads for items you’re interested in, visit wholesalers, etc. The more ammunition you have in your weaponry, the easier the haggling battle will be. 

*** Don’t exceed your “final” price – before you start to negotiate, set yourself a maximum price. If you can’t drive the price to this level (or lower), simply say “thank you” and walk away. 

*** Be prepared to walk away – go into the pursuit with a sense of detachment. If you truly can’t live without something, it’s often not the best item to haggle over since you’re emotionally attached.

Tip #3: Mind your manners

Haggling is a tricky business – the outcome of the deal must suit both sides if it’s to be successful.

For this reason:

*** Keep your cool: Anger is a weakness you can’t afford. Not only will it insult your fellow negotiator, it’ll also show how much you truly want the item. True hagglers can spot emotion the same way a shark can smell blood. Be reasonable.

*** Don’t forget your obligations: Once you start haggling on an item, you’re expected to buy it once you’ve come to an agreement.

*** Avoid an audience: This is another “golden” rule in the world of the bargain maker. Haggling quietly and out of earshot of other patrons will allow the person in charge to be more flexible when agreeing to bargain. It’s all about the notion of “what’s good for the goose is good for the gander”. If others hear you’re getting a fantastic deal, they’ll want it too. This won’t be good for business and you’re unlikely to make a deal.

Tip #4: Get the best deals by…

*** Dressing down: This is one situation where you should NEVER dress to impress. You’re more likely to get the best deal if you shop in jeans and a t-shirt, than you are if you arrive in an Armani suit and Rolex.

*** Searching for imperfections: Look for fixable flaws to add leverage to your negotiation. A small dent in an inconspicuous place or a tiny blemish on a surface can equate to big savings if you’re haggling over price.

*** Paying cash: Cash is a great bargaining tool – so use it.

In the name of happiness,

Your Insider

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