Make no mistake about it, negotiating for the lowest possible price from a seller is a full contact sport. You can’t walk into negotiations expecting to walk away with the best price unless you are fully prepared.
Keep the following 4 tips in mind so you can increase your chances of getting the best prices regardless of how hard the seller is.
Do Your Homework
You have to do research about what you’re buying. Know its value to you, what it can do for you both in the short-term and long-term, what the seller is selling it for and what its average selling price is. Get information on substitutes and their pricing. This should give you a base line on how important the item you’re buying is and what you should plan to pay.
Talk Down The Product
Regardless of what you’re buying, talk a bit of trash about it. If it’s a luggage set, say you don’t like the color all that much. Say another luggage set does the same job for half the cost. Let them know you’re not going on vacation anytime soon and don’t really need it. Pick it apart as much as you can.
By doing this you will put the seller in the position of trying to sell you their product. This puts you in a powerful position. One of the only ways the seller can convince you to buy it is to lower the price.
Make A Low Ball Offer
Enter negotiations with a shock and awe approach. Basically, you lay out a very low price. This knocks the seller back from his or her original position and puts them on the defensive. The seller is forced to justify their higher price.
Inevitably the seller will come back with their offer. You then come up a bit and hope they come down again. After this “dance” you can hopefully agree to make a good deal that’s in your favor.
Get Quiet All Of A Sudden
Silence makes sellers squirm. It puts a lot of psychological pressure. When you’re silent, their mind races with countless thoughts. By talking a lot early on and then stopping, you put the seller in a position where the seller is forced to chase you. Again, this all depends on your initial pricing position and how realistic it is based on market price range.
When you get quiet, the seller is forced to quickly calculate how much the seller is willing to walk away with just to get a sale. This won’t work if your price is below cost or so close to it that it can be interpreted as an insult.
Make Up For It With Extras
If the seller is very stubborn and won’t lower his price any more, it’s time to ask for extras. Let them know you will only agree to the deal (and his/her price) if you get a few added bonuses. This could be a free extended warranty, a free accessory or eliminating any installation fees.
Calculate the added value of these and you’ll see that overall, you made a great deal. In the end, you still won while giving the seller the price he or she wants.