The Art of Negotiation

According to Dave Ramsey, everything is negotiable. In his FPU financial training series he says to pay cash for everything and always bargain. For the most part, I agree with him. However, have you tried going to Walmart and at the check out counter pull out cash and try to wheel and deal? I didn’t think so. I am sure Dave was not referring to retail big box stores. I do agree that money talks and have experienced it many times. My best friend is the king of negotiating and I have witnessed this multiple times. Here is his simple plan of negotiating and most the time it works great. 

• When shopping carry cash in small and large bills to use in the negotiating process 
• Never act like you are crazy for the item and just have to have it no matter what
• Walk by it several times and stop and look
• Once the clerk asks if you are interested in the item, say no and walk off
• Keep going by the item and looking at it
• Once the clerk asks again if you are interested in the item, now ask how much
• Always respond that’s too much and walk off
• The clerk now asks what you think the item is worth after the first price was given
• Reluctantly offer much lower and thus the negotiations have started
• Next pull out cash and make your offer. If they decline, then walk off.
• Stay firm with your offer and most the time the clerk will take a cash offer

Here is the art of negotiation. Don’t just accept the deal as is and let them know you really want the item. This process can be applied at home and in business. I use it all the time in business and have saved thousands of dollars over time. Let’s say you are working with a vendor offering you a service. You feel the cost is too high and you need a better deal. Use the same process above. You may not be using cold cash in the deal, but the rest applies. The vendor presents you a service at a cost and wants you to sign a contract. Start with acting like you don’t have to have his service. Look at the contract several times but walk away. Tell them you need to shop it more. The vendor adjusts the contract and pricing and you still look and walk away. You even get other quotes that are way less and have the same service. The vendor says this is his bottom deal. You respond with your other quote and ask him to match it or walk away. That’s cash to him and he takes the deal. Booyah! You just saved a lot of money from negotiating the deal. 

I try and use this art of negotiation from my best friend and Dave Ramsey’s advice about cash but it takes practice. Recently I was at a guitar show and stopped by a vendor with accessories. I spotted a nice guitar strap and asked the price. I was told $40. I walked away. The clerk stopped me and said she would take $35. I pulled out a $20-dollar bill and said I would give that. She took it! I was looking at a guitar online and the cost was $80. I offered $65 cash and he took it. You get it the message, right? Negotiate wherever you can at home and in business. The best part is after the deal knowing you made a huge savings.

 Your comments! Suggestions! Have you tried this?