High success rates among customers who haggle insurers
This week Which? published research: Want cheaper car insurance? Be prepared to haggle that revealed two thirds of drivers who negotiated their quote price with their car insurers were offered a better price.
Why should you try to negotiate a lower price?
In Britain we tend not to haggle. Unlike other cultures, we appear more hesitant, not knowing what to do or lacking confidence, even though haggling could save us a lot of money!
But in fact, many businesses are open to haggling. After all, they want to make a sale, even if the profit margin is slightly lower.
A displayed price tag isn’t necessarily the final price. It is an “invitation to treat”. No contract has been formed until money has exchanged hands. And the worst that can happen from haggling is being told “No!” by a salesperson!
Consumer expert Helen Dewdney, AKA The Complaining Cow, is on hand to help you haggle to make significant savings.
20 Top tips to haggle and save
1) Look at competitors’ prices using comparison websites such as Google shopping, Kelkoo and Price Runner and use that information in negotiations with companies. Use other prices that you may have got online or through speaking to other companies and tell the company that you have been quoted a better price.
2) Estimate the product/service’s margin. Before you call, write down two numbers – the maximum you’re willing to pay and the lowest you’re willing to pay. These numbers should guide your haggling.
3) Have the cost in mind, but also consider what else you might accept. Could the business throw in something? Batteries? Sofa cushions? Delivery charges, installation fees, administration fees and accessories can all be negotiable! A couple of extra contract months? This will help you and the business to be open to alternatives and possibilities. But make sure you want the offer! There’s no point in a phone contract with 500 text messages per month if you usually only send 10! Be prepared to walk away at a price that is too high.
4) Try going to a store during its quiet time, when there’s no pressure to move you on.
5) Buy a new car in September. Dealerships want to clear old the 26 registrations because they want the new registration on their showroom so you can often get a deal if you don’t mind about the number plate. Go towards the end of the month, possibly the last Thursday when sales people are trying to hit targets.
6) Be cool, calm, polite and assertive. Tell the businesses that you are a cash buyer or can pay today, to show you’re serious.
7) Importantly, make sure you start the haggling process with the person who has authority to make deals.
8) Keep good humour. It’s just a game. People are more open to persuasion if you make them feel good, rather than trying to beat them down in price. Make them feel like they want to help you.
9) A haggled price is a win-win. The trader gets a sale that they might otherwise not have made and you get a good price. For this to happen, show the trader the beneficial impact the sale could have to them in future. For example, a block booking of rooms in a hotel saves them time and guarantees sales, so they could give you something else for free or discounted, such as meals.
10) Haggle on online chat too. Just ask the bot or human questions about the product then ask if they can give a discount. You can take screenshots of that and take into store too.
11) You could save money on your next holiday by haggling with your travel agent or calling your hotel directly, instead of settling for the price online. This could result in a discount, free upgrade or even a bottle of champagne on arrival.
12) When choosing a holiday find out the price for booking the hotel directly and haggle with the travel agent.
13) Usually, if you threaten to leave a company, it will likely make you an offer to remain. Look at offers available for new customers and request one for being a loyal customer. This is particularly true of telecom and insurance companies.
14) Bundle purchases together. Buying several items from the same retailer can often secure a better overall deal than negotiating on each item separately.
15) If you need to complain about a service, such as broadband connectivity, request a discount as well as redress for the issue.
16) Be silent! When you have asked for a better price and then be quiet. People are often uncomfortable with the silence and will try to fill it.
17) Ask open positively-worded questions. Phases like “Can you do better?” can lead to a “no”. Better to ask “What flexibility do you have?” or “What is the best you can do?”
18) Don’t be too swift to accept the first offer. If the sales person was happy to give you a quick discount they may offer another one!
19) Show your loyalty. Companies are known for giving better prices for new customers, so point out your loyalty, whether that is regularly spending money with them or always renewing a contract. Then negotiate a discount to the same as a new customer could receive.
20) If you have negotiated a price on the phone, make sure the person you are speaking with puts it in writing to you, by email whilst on the phone if possible.
Get haggling. What have you got to lose? They can only say no!
Haggling discussed on Channel 5
I appeared on the Alexis Conran Show on Channel 5 to discuss haggling. I regularly appear in the media discussing financial issues and consumer rights and customer service. See media appearances.
How to haggle masterclass
TikTok video on haggling
@thecomplainingcow Haggling can save you a lot of money. And remember your consumer remain the same. #Haggling #SaveMoney #MoneySavingTips #haggle #ConsumerRights
