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6/21/17 at 06:40 AM 0 Comments

3 Rules for getting the Best Price on Anything

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Consumer debt is real because people usually borrow money to buy essentials and non-essentials. People who fund their lifestyle with debt can naturally expect financial troubles down the road. However, many people still end up struggling to get by financially even though they are not spending money on non-essentials.

If you spend more than necessary on the essentials, you'll always have a shortage of funds to cover your expenses. However, many people are not versed in the art of negotiations and they usually end up paying more than necessary. This piece covers three rules that can help you become an astute negotiator to get the best price possible on just about anything.

Know what you are talking about

The first negotiating rule that could help you get the best price on anything you want to buy is to know what you are talking about. You need to understand some important things about the product/service; otherwise, you'll be negotiating blindly. For instance, you need to know how much the competitors of your seller are asking for similar products/services. It could also help your cause to know have an idea of the cost price of the product in order to anticipate a selling price that still gives the seller a fair profit margin.

In addition, knowing why the seller is in the market could also help negotiate from a position of strength. For instance, someone leaving town will be more inclined to sell a piece of furniture than someone who actually imported the said furniture in order to sell for profit.

Don't be the first to name a price

When negotiating for products and services, you should note that there's always a price anchor. The interesting thing about the price anchor is that it can't go higher when set by the seller and it can't go lower when it is set by the buyer. However, whoever names a price first sets the price anchor; hence, if you (the buyer) talks first; you would find it very hard to buy the product at a lower price.

By doing your homework (see 1) you'll know the fair price that you can afford to pay for the product. Hence, when the seller gives you the anchor price, you'll be in a better position to name a significantly lower counter offer. Of course, you can always move up from your counter offer if you are starting from a low price.

You can afford to be unreasonable

When people negotiate on the prices of products or services, the buyer and seller both name their prices and then they'll work up/down towards meeting in the middle. The problem however is that the middle price point is usually higher than the fair price that you should have paid for the product. When next you are negotiating thing price of a product, you can afford to be unreasonable by offering a significantly lower price than the asking price.

When you name a significantly lower price, the seller would be focused on getting you to increase your offer and they'll be less inclined to push you to come up to the middle point of the offer. It is often hard to make the mental jump to make a ridiculously low offer but making the low offer is the way to go. In addition, the low offer could make it easy for you to ask for other concessions or extras when you eventually raise your counter offer.

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