Why, when and how to haggle
This is a version of the article How to haggle for the best deal, from broadband to travel that first appeared on The Guardian website 25 April 2022. How to haggle to save the most money!
Why haggle?
In many cultures, haggling is the norm. But Brits appear more hesitant, not knowing what to do or lacking confidence in doing it even though haggling can save a lot of money!
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. 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.
Earlier this year, Which? revealed the average saving for customers who’d haggled with their broadband TV provider was £128. Broadband customers saved an average of £85 annually and mobile customers could save almost £30.
So can you be a better haggler?
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Do your research before you haggle
Use as much information as possible in negotiation.
Look at competitors’ prices using comparison websites such as Google Shopping, Kelkoo and Price Runner. Blogger Michelle Bailey at Time and Pence haggled £600 off the price of new windows and doors by speaking to competitors first and seeing what prices she could get.
Estimate the product/service’s margin. Another blogger, Or Goren of Cord Busters says “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.” He advises that if you stay focussed and within the limits you’ve set – you’re more likely to win.
Have ideas ready of what you want when haggling
Have the cost in mind, but also consider what you could also accept? Could they throw in something? Batteries? Sofa cushions? A couple of extra contract months. This will help you and the business to be open to alternatives and possibilities.
But Claire Stitt of Stapos Thrifty Life Hacks suggests defining your requirements from the onset “There’s no point in a phone contract with 500 text messages per month if you usually only send 10!”
Utilise best times for haggling
Try going to a store during its quiet time, when there’s no pressure to move you on.
Purchasing a car? Go towards the end of the month, possibly the last Thursday. Becky Derbyshire who runs The Life Style Blogger UK recently haggled on her Ford Fiesta. She says that the sales people are desperately trying to hit monthly targets so they lower prices. You can also get added extras. Increase chances by going at quarter end too!
Polly Arrowsmith has haggled successfully for years. Examples include hundreds of pounds off a dishwasher and furniture. She’s even haggled successfully with Harrods, eBay, Prada and for seconds, demonstrating you can haggle with most traders whatever the price. Many of her wins have come from knowing when the sales are coming, too, so they will be ready to reduce their margins.
Build and develop a good relationship as you haggle
Be cool, calm, polite and assertive. Say you are a cash buyer or can pay today, to show you’re serious.
Importantly, make sure you start the haggling process with the person who has authority to make deals.
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 want to help you.
If it’s a “No” or you can’t get the desired discount, accept gracefully, thanking them for their consideration. You may be back to haggle on something else or with them in another store if they change jobs!
Show the value of the lower price when you haggle
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 in future. Shilpa Panchmatia is a retired entrepreneur, teaching people how to grow their business. When booking a hotel deal for a conference, she showed the General Manager what impact it would have on his annual figures, as she was bulk-booking rooms every month for a whole year. After this she also got him to waive the room hire charge. “The secret was to show the recipient the bigger picture and how he would benefit” she says
Apply this rule when haggling for non-business use too. Think of bulk-booking rooms for an overnight stay for a wedding, for example. They benefit from more rooms booked and you get your discount.
Haggle and negotiate prices on online chat
Jenny Ross, Which? Money Editor, says that in their online shopping research they found discounts of up to 20% from popular retailers, just by asking for a better price on the online chat function.
“You could save money on your next holiday too 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.”
Haggle on contract renewal, get negotiating!
Usually, if you threaten to leave a company, you’ll be made an offer. However, you can possibly get better deals by negotiating. Look at offers available for new customers and request one for being a loyal customer. This is particularly true of telecom and insurance companies.
Insurance companies must now legally offer you the same price as they would a new customer. This does not mean it is the cheapest price, though. So, tell your provider about the comparison site prices that they must beat.
Haggle when complaining
If you need to complain about a service, such as broadband connectivity, request a discount as well as redress for the issue. I did this recently, gaining 6 months refund, a free year’s upgrade and a wi-fi booster.
Offer cash payment when you haggle
Shops are charged 1-4% of the transaction value in credit/debit card fees. Although traders may have to pay for putting cash into a bank, it may be a lower cost, so it‘s worth offering as part of your conversation.
Approach small businesses
Brad Burton is a Motivation Business Speaker who founded Network Central, the UK’s largest joined up business networking organisation. He says that it can be far easier to haggle with smaller businesses, as they have the flexibility that comes from a smaller chain of command are usually hungrier for the sale and so more likely to make concessions. He adds “When it comes to negotiation, offering immediate or short payment terms is always a good starting point to help any cashflow issues. Don’t make unreasonable offers. Understand that any business has to make profit and they are offering a product or service you want and/or need – so be respectful.”
How to haggle on phone and broadband contracts
How to reduce mid contract price hikes and more.
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