By Kentin Waits
Sometimes, it takes an economic downturn for folks to rediscover a lost art. I’ve heard all the buzz lately about people beginning to negotiate the price of everything from new shoes to cell phone plans. When we see companies slashing prices and luring us in with incentives and other goodies, we rightly begin to wonder just how firm the price was in the first place. Finally, America is taking the haggle out of the used car lot and applying it a bit more liberally.
For some of us though, the art was never lost, and we constantly marvel at how readily some folks hand over cash before employing a few simple and time-honored "tools of trade." Over the past couple of decades, I’ve distilled successful negotiating down to seven key principles that can help the newbies out there and serve as a refresher to those who might be getting rusty:
1. Come prepared.
Never begin to negotiate on the price of an item that you haven’t researched and understand the value of. In order to get the best deal, it’s essential to know what the market supports for the item in your area. Ask yourself: is it a good deal to begin with? What have other items like it sold for recently? How is this one better or worse? What’s my ideal price and what’s my maximum price?
2. Be polite.
Negotiating should be less of a battle and more of a dance. Have a conversation with your seller, kick the dirt, and find some common ground. Realize that both parties have an investment in the outcome, and that a happy seller is as important as a happy buyer. Sellers who leave feeling like you drove a hard but fair deal will be more likely to "dance" with you again.
3. Don’t make the first move.
This is where a bit of psychology comes in. If you’re in a situation where the price of an item is not stated, let the seller toss out the first number. Whoever quotes this magic figure first takes the most risk in negotiation — is the price so outlandish that the seller has alienated the buyer? Is it so low that he could have gotten twice that amount? If you can’t avoid naming the first price, opt for a fair, if slightly low-ball offer. Remember, you can always …