Monday November 23, 2009 9:06 AM ET
SmartMoney
Published March 10, 2006  |  A A A
Deal of the Day by Kelli B. Grant (Author Archive)

Bargain Like a Pro

BARGAINING IS ONE of those necessary life skills that so many of us lack.

Americans tend to be weak on this front because it's a skill we rarely use, says Reid Bramblett, a travel expert and founder of Reid's Guides. Sure, we bargain at the car dealership and during job negotiations. But for the most part, the price on the tag is the price we pay.

Unfortunately, this means we often overpay. And when traveling abroad, this weakness could be viewed as downright insulting. "It almost annoys the vendors," says Bramblett. "They would rather it be the proper social interaction."

Here are some tips on how to bargain with confidence:

  • Conduct research. Know what the going rate is for an item before you go shopping, advises Anna Wallner, co-author of "The Shopping Bags," a shopping guide. This will help you to fix a price in your mind of what you're willing to pay.
  • Let the seller be the first to name a price. You're at a disadvantage if you're the first to attach a dollar sign, our experts agree. After all, the seller might immediately agree, which means you've bid too high, says Bramblett.
  • Don't get attached. Appearing too interested in an item tells the merchant that he's going to make that sale whether he bargains with you or not.
  • Carry small bills and change. "For a seller, it's annoying when someone bargains you down to $1 and then pays with a $50 bill," says Randy Lyman, co-author of "Garage Sale Gourmet," a shopper's guide. Having a few small bills to pull out can give you leverage by setting a maximum price: "Gee, I only have two fives. Would you take $10 instead of $15?"
Different situations call for different techniques, of course. Here are some strategies for common bargaining locales:

Retail Stores
Most people don't think you can negotiate with a retail store's prices, says Wallner, but there's no harm in asking for a discount. Here, it's very important to be nice — and articulate. "You really want to try to give the merchant a reason to give you a discount," she says.

The best situations for trying to snag a lower price at a retail store are when you're buying a big-ticket item, when the product is flawed, or when you've been a loyal customer to the store in question.

Retail is one area where you will pretty much always need to initiate the bargaining, but, again, don't be the first to mention a specific price. Don't specifically ask for, say, a 20% discount, Wallner advises, since it may come off as too aggressive. Instead, ask if there's any chance the item will be on sale soon, or if there's any way the sales associate could offer you a better price. Keep in mind that a discount may not always be cash off, she says — you could get free delivery, extra products or some other perk.

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