Cromwell, CT - Connecticut Better Business Bureau says many consumers who say they are reluctant to negotiate, don't realize that they already negotiate many times a day, all year long.
We are engaged in negotiations with our colleagues and supervisors about vacation time, at home, the assignment of tasks, and we are also negotiating something as simple as where and when to meet up with friends for a dinner or movie.
Connecticut Better Business Bureau spokesman Howard Schwartz, says marketplace negotiations are not only about lowering the price you pay for something.
"Negotiations are also about getting more for your money or lowering or eliminating something like a late payment penalty. Negotiating is more common in certain types of businesses, such as car sales," says Schwartz. "We have the mistaken belief that the price on the tag is a final position. It often is not."
Example: If you have a home maintenance or repair project, once you obtain an estimate, examine the contract for areas with wiggle room. This might include modifying the price structure for labor, changing the design or the quality and cost of building supplies.
Some business people may not give you extra goods and services for free, but they might give you a break on a favorable payment schedule if you ask.
If you discover you made a late payment for a mortgage, credit card or loan payment, speak to the payee, and if you have a history of being reliable, you can often get them to waive a penalty.
There are hundreds of negotiating tactics, all of which involve diplomacy.
Example: Using the model of a wireless provider, if you have a problem or your contract is coming up and you want to get a better deal, you might say something such as "As we both know, wireless is a very competitive business. You can see in my file that I am a longtime and loyal customer. How can you help make this a win-win situation?
BBB Tips for Effective Negotiation:
Listening is more important than talking - Follow the 70/30 Rule: Listen 70 percent of the time and talk only 30 percent of the time. Encourage the other negotiator to talk by asking lots of open-ended questions - questions that can't be answered with a simple "yes" or "no."
Do your homework - Knowledge is strength. The more you know about the abilities and limitations of the other negotiator, the more of an advantage you will have. Look around online to get a general idea of the value and price of merchandise. Many retailers will match the lower price of merchandise on certain websites, but you have to ask in order to benefit from price matching.
Take your time - If you don't give yourself enough time to listen and talk, you could be rushed into accepting less than you'd like. Time is power too. So is patience.
Don't reveal your hand - If you're in negotiations for a new job - you don't want to tell the employer that you are in desperate need of a job - because then they know that they control the discussion and terms. It's a similar scenario if you go to a car dealer and tell them your car is trashed and that you urgently need a new one. That tells the salespeople that you are desperate and will make them less inclined to bend. Take charge of the conversation, reveal as little information as possible and ask your own questions.
One of the most important elements of negotiation is being capable of walking away if you don't like the deal, instead of arguing. The greatest power we have is to just say "no." Don't give up that power.