Most of us are pretty good at hunting for deals — but when it comes time to actually ask for a better price, we tend to freeze.
Negotiating can feel awkward, pushy or just plain uncomfortable. The thing is, there are a handful of everyday purchases where a simple conversation can save you real money.
We spoke with Jeffrey Hensel, broker associate at North Coast Financial and Dennis Shirshikov, head of growth and engineering at GrowthLimit, to break down which purchases are almost always worth negotiating — and why it pays to speak up.
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The Costly Habit of Not Asking for a Better Deal
“I frequently observe clients failing to negotiate when making big and regular purchases,” said Hensel.
For him, the best examples of research, time and planning questions that can yield valuable savings are cars, auto insurance, service plans as well as warranties.
He advises clients to shop across various quotes and demand providers give them a deal or offer discounts, because almost three-quarters of companies are ready to compromise when offered alternative deals.
“Negotiation is not a fight, it is planning and patience,” he said. In his experience, customers willing to negotiate can save thousands every year even with minor changes in a number of purchases.
“Even families and individual persons who consider their daily bills as negotiable are shocked to see how much they recover just by asking,” he said. “Any dollar conserved is an opportunity to invest in something that appreciates and I have observed that this tenet always pays off to the clients.”
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Service Contracts
According to Shirshikov, another unconsidered category is service contracts — things like your phone plan, internet, cable and even software-as-a-service subscriptions.
“These firms are working on lifetime value models, where retention is more important than acquisition,” he said. Simply asking for promotional pricing, threatening to move on to another provider or requesting a loyalty discount can keep those monthly bills low with minimal effort, according to Shirshikov. “Over a year or two, those small monthly savings can really add up.”
Home Purchases
Home purchases often have wiggle room well beyond buying the building and land. Furniture, appliances and home improvement services are also invariably negotiable, according to Shirshikov, especially in non-peak times of demand.
“Retailers frequently have margin flexibility, floor model discounts or financing incentives that are available only if a customer inquires about them,” he said.
Even professional services such as accounting, financial planning or home maintenance contracts can be generally based on scope, payment timing or bundled charging.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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