Surprisingly, you can negotiate with your current phone carrier.  There are a few things to keep in mind when making the call.  It pays to be prepared.  Especially since most customer service people for cell phone companies can be very skilled at bargaining.

HOMEWORK

Do some homework on the internet.  Check out the going rate from 3 different companies.  If it’s cheaper than your current plan, you need this info to use as ammunition.

SWEET AS SUGAR

The old saying of catching more flies with honey absolutely applies with negotiating.  When you call the company, keep your calm and be polite.  That doesn’t mean be a pushover (you need to be firm) but decent courtesy will put you both at ease.

LEADING QUESTIONS

Make sure your questions don’t allow them room to say yes or no.  They need to be leading questions.  Instead of “Can you give me a lower rate”, say “I’d like to hear about a cheaper plan.”

SAVE THE DRAMA FOR YOUR MAMA

You don’t need a long winded sob story. Be direct.  Tell them with the harsh economic times, you simply can’t afford the bill.  Ask to hear about a lower rate or package.  If they decline, then follow the next step.  If they agree, then commence a happy dance.

BRING OUT THE BIG GUNS

With all that handy research in hand, inform them that company x,y and z have lower rates.  You want them to match it.  If they refuse, then you can drop the ‘c’ word: Cancelation.

CUSTOMER RETENTION

When you ask to be transferred to the cancelation department, you actually want to be transferred to what is called the ‘customer retention’ center.  These guys are responsible for trying to keep you as a customer.  After all, it is far more expensive to try and get a customer to replace you with then to keep you.  These guys generally try and lure you with free perks etc.  Stick to your guns and ask for a matched rate.

NUMBER CRUNCH

If the cell company just won’t budge, look at your contract and see how much your early cancelation fee is.  Many times, the savings you’ll get with a different company more than make up for it.  It may be worth it in the long run to cancel.  And you can certainly let your current provider know that as a last ditch negotiation effort.

There is no reason you shouldn’t be getting the best deal out there for your cell phone.  And especially if you’ve been with your provider for years, they should value you and want to keep our business. (And if they don’t, then you are better off without them.)  Potential savings are anywhere from $25-$50 a month.  That’s an extra $300-$600 a year!  What would you do with the extra cash?

Related posts:

1. Lower Your Credit Card Rate in 60 Minutes Flat
2. How To Negotiate Your Dental Bill
3. Negotiating Credit Card Interest Rates

The first thing to consider is ‘What are people in my field making?’ Do your research.  It’s not hard to get a general idea of salary averages by looking up job postings.  Then, compare it to what you’re making.  If you are making less than average, you can use this data as ammunition when you enter the arena with your boss.

Next, write down exactly what you want and why you should get it.  This will help you organize your thoughts.  Some things to include:

*Your bottom line.  Write the lowest amount you want.  Then write the amount you will propose (which should be higher than your bottom line).  This will give you wiggle room.

*Other perks.  Want benefits? Include that in the negotiations.  Want paid vacation? Write it down too.  And one of the best perks? Education.  Asking your employer to pay higher education is invaluable.  Not only will it widen your knowledge of your field, it will give you a leg up on other employees when you want to move up in the company.

*Talk about what you deserve and NOT what you need.  Have you brought in a profit?  Tell them.  Widened their client base? Let them know.  Do not talk about how you need the money to pay child support, your mortgage, or your light bill.  Let them know your worth to the company, not your financial hardships.

*Extra experience.  If you’ve taken seminars, courses or workshops in your field, that gives you worth!  It shows your dedication to the company and desire to learn more.  You need to promote this.

Once you’ve gotten a clear and strong case written down, practice saying it to a friend or family member.  This may sound silly, but if you can say it out loud before pitching your case to your boss, it will be much easier on the day.  And ask for feedback.

And finally, be willing to compromise.  If this job is really worth it, know that you need to be flexible.  Sometimes, enjoying your work environment can make a huge difference in where you choose to work.   Just as important as knowing your worth, you should know your employers worth too.

“Find something you love to do and you’ll never have to work a day in your life.” Harvey Mackay

Related posts:

1. Top 10 Salary Negotiation Tips
2. Negotiating a Lower Cell Phone Bill
3. Negotiating with Vendors

However, it’s not a totally bleak situation.  You do have the power to negotiate the interest rate down.  Even though it’s true that banks and credit card companies are more worried about recouping their money with high interest rates than keeping customers happy, you can certainly make every attempt to lower the rate.  Below are a few tips to keep in mind.

1. Know the going rates.  Do your homework and research the rates of other banks and credit card companies.  While you’ll most likely not get a 0% rate, you can very well get 10%.  And with many card rates at 20% or more, that drop will save you hundreds of dollars.
2. Ask for a modification.  Many banks are allowing you to ‘modify’ your debt.  This means lowering the interest rate and closing the card.  You won’t be able to borrow against it anymore, but it is well worth it to get the rate lowered by 10%.
3. Have another offer in your hand.  If you start the conversation off with “I have another offer, can you match it”, gives you an edge.
4. Be willing to give.  If you explain to them that dropping the interest rate to 10% means you can pay an extra $20 over the minimum payment each month, they’ll know the benefit of dropping the rate.  And you will be closer to paying that debt off.
5. Don’t be afraid to throw down the ‘B’ word.  That’s right.  Bankruptcy. If you calmly explain to them that you are financially struggling and if they don’t lower the rate there’s a good chance you’ll have to claim bankruptcy, you’ll be surprised at the reaction you get.  The banks and credit card companies do not want you to file bankruptcy because they get nothing.  It’s better to keep you making payments.

Feeling overwhelmed by debt, while an awful feeling, is very common right now.  Many people are in the exact same situation.  Knowing that you can work with these companies to ease some of the burden is a relief.  “Give your stress wings and let it fly away.” Terri Guillemets

Related posts:

1. Lower Your Credit Card Rate in 60 Minutes Flat
2. Define Issues and Interest: Negotiation Preparation II
3. Negotiating a Lower Cell Phone Bill

All businesses, no matter what the size, should regularly take a look at their budget to identify areas which can be cut back through the almighty power of negotiation. To start the process, ask yourself the following questions about each of your suppliers:

What is your relationship?

If you have been working with a particular vendor for a while and have established an amicable relationship, setting the stage for a discount can be made easier. State that you have been a regular customer for X amount of time, you are happy with the service and products they have provided and you are committed to keeping your business with them—but you think that your loyalty could be rewarded by a discount on future orders.

In most industry’s it cost approximately 10x’s more to attract new business than to keep current customer’s happy. Most likely, it will be beneficial for you supplier to cut you a deal rather than get another client to replace your business.

For example, I recently needed to purchase 10,000 magnetic business cards to market a project I am working with, but my budget for this need was not quite enough to purchase them from my regular promotional magnet supplier, AdvertisingMagnets.net. Since I have worked with this company in the past and developed friendly rapport with the owner, I decided to bring my problem to him. He was glad to accommodate my request of cutting the cost by 5%. Like I have mentioned oh-so-many times before, you often get what you want—you just have to ask!

You can also check out their customer service history.  We were able to check them out through their BBB information page about their custom magnet business.

How important is your business?

Is your account keeping your vendor’s business afloat, or are you merely one of many that help to pad your suppliers’ profit margin? How much you spend and how big your vendor’s business goes a long way in determining where your negotiation power.

If your business means beans to them, spending the time negotiating with you could cost more than keeping you as a customer. Your position in this case is precarious, at best. Although, if you are working with a local company that counts on your business to bring home the bacon, you can bet that they will do whatever they can to keep you from taking your business elsewhere, including offering you a hefty discount.

Who are their competitors?

In today’s internet era of e-commerce, it is easy to be constantly finding companies willing to undercut competition for a shot at making a new customer happy. Capitalism has done wonders for ensuring that companies offer quality goods at rock bottom prices. You will find this is true for MOST products you require, but NOT ALL. If your supplier has a virtual monopoly on an industry or provides highly specialized goods specific to your trade, they have little incentive to negotiate with the likes of you.

For example, my husband has one client who specializes in selling wingtips to the airlines industry and they have not other competition to speak of—primarily because they are the only ones with the patent on this product and it solves the problem of reducing fuel costs better than any other available on the market today. I would imagine that they are in a position of supreme negotiating power because they can offer this product, which others cannot, and save their clients big bucks on fuel in the process.

Is non-monetary compensation an option?

If you are really keen on cutting down your cost of doing business, consider trading your services for a discount on supplies. The trick to making this arrangement work is to frame your offer in a way that is a win-win for both sides. If you have a website designing business, you can offer to improve the look of your vendor’s site for a trade of goods.

Do you have any suggestions on negotiating with vendors? Let us know so others can learn from your experience.

Related posts:

1. Negotiating Banks Fees and Charges
2. Negotiating a Gym Membership
3. Negotiating with Comcast for Triple Play

You may have encountered a similar situation yourself recently. Banks have been inventing new fees left and right to keep the money flowing. They need to do something to stay afloat during this financially tumultuous time. I don’t begrudge their efforts. Like so many Americans in my shoes, I just don’t want to be the one to pay for it!

If you want to join the fight against fees, read the following guide to get started and liberate yourself, and your money, today!

First, Ask Nicely

Sometimes all you need to do is ask nicely. If you’ve had an uneventful history with your bank, they will want to keep their customer happy and most likely fulfill to your request. Why might they be so apt to readily agree to your request? It generally costs 10X more money to attract a new customer than it does to keep a current customer!

So many people would rather not deal with the headache of calling the bank, waiting on hold, and haggling with the customer service rep that they don’t even bother to get their $5 or $10 back. The bank gets away with this sort of thing all the time. Think again next time you just accept new fees as part of your monthly expenses. Ten dollars a month for a year will cost you $120 and $600 in five years. It is probably worth 15 minutes of your times to get your bank bill corrected.

Persistence Pays

If your bank wants to play hardball, don’t give up. Ask to speak with someone else of higher authority that can help you. If speaking with that person doesn’t do the trick, call back the next day and you may hit an immediate homerun with the first person you reach. At some point the bank must consider what it’s costing them to pay their employees to negotiate with you, and the goodwill they’re losing with a customer in the process.

Bluff Your Way Out

The last thing your bank wants to do is lose your business (assuming you’re a customer worth keeping). If your bank flat out refuses to refund the fees, tell them that you are ready to take your business elsewhere if they do not stop with the charges. Most likely they’ll back down at this point and find a solution to ensure you stay a customer. If you do use the bluff tactic in this situation, be prepared to follow through. Have a reputable bank lined up, or better yet a credit union, to open an account.

Join a Credit Union

I mentioned earlier that I have not used my BOA account in several years. This is because I am now a member of a local credit union. The credit union has so far exceeded my expectations of customer service, without the snarky attitude the employees of corporate banks seem to share. Not to mention fees are virtually nonexistent! You are also able to use member credit union’s ATMs for free. Bonus!!!

If all else fails, there is sure to be another financial institution waiting to welcome you with open arms who will offer all the bells and whistles without the costly fees.

Have you negotiated bank fees with Bank of America, Chase, Wells Fargo, Key Bank, or another financial institution lately? What was your experience?

Related posts:

1. Canceling a Sprint Wireless Contract
2. Negotiating Credit Card Interest Rates
3. Negotiating Medical Bills

After you discover how much is at stake, I think that you will agree that negotiating your Realtor’s commission is well worth your time. For example, if you sell your house for $300,000, a 1½% decrease in commission will save you $4,500! Likewise, if you are on the buying side asking for a rebate of 1%, when you are purchasing a $400,000 home, will allow you to walk-away from the deal with $4,000 in your pocket!

It’s a Tough Market

Unless you are a first time home buyer with excellent credit and a chuck of change to put down on a home, you are going to have a rough time buying and selling in this market. Fortunately, the one thing that you do have some control over is the agent you choose and the commission agreement you negotiate with them. Since the real estate industry is doing so poorly, these agents are more likely to cut you some slack when you suggest that they cut their commission and pass the savings along to you. They will be especially likely to comply to your request if you are a SERIOUS buyer or seller.

Price to Sell

The number one thing an agent considers when they are interviewing, and being interviewed by, a prospective client is how much of their time you are going to take. If you are on the fence about selling and want to overprice your home “just to see if you get any offers” don’t expect your agent to give you a piece of their pie. Pricing to sell is the most effective way you can strengthen your position when asking your agent to drop their commission.

A good agent knows that the less time they have to spend waiting for you to become realistic on the list price of your house, the less time they will have to “put on a show” marketing an unsellable property. If you overprice a home in this market, waiting’s all you’ll really both be doing. Waiting, and waiting, and waiting some more!

Your agent is legally obligated to work for your best interests. When they tell you to price your house for $30,000 less than you thought it was worth, they are only trying to save you both a major headache. In this buyer’s market, if you want to have a chance to sell your home, you need to competitively price it to move. Let the natural forces of capitalism do their work.

Be Ready to Buy

If you are planning to buy, don’t start looking until you are ready. The houses that are on the market today may be gone tomorrow. If you find the perfect house now, but are unable to buy, you might be sorely disappointed when you can make your offer and the house has already been sold.

To avoid this situation, before you call an agent up to show you around, get financing. Since banks have been forced to buckle down and only grant loans only to the crème de la crème, you may not be able to qualify for as large of a loan you were expecting. This story is sad, but true. Too many people lost their shirts taking out many-a-loan they had no way of repaying.

Be open with your agent about what you can afford and when you want to buy. They will respect your honesty and be more obliged to take your request for a portion of the commission more seriously. In the real estate game, time is money. As much as your agent may act like they love spending their Saturday afternoon chauffeuring you around, they don’t. Trust me on this one.

Interview Multiple Agents

When you are ready to make the big move, start to interview agents. No matter if you are buying or selling, you need to invest some time in choosing the right agent. There are virtually no barriers to entry in the real estate industry, so the quality of agents out there varies dramatically.

If you do not personally know of any agents in your area, call a few of the big local real estate firms and they will gladly send over one of there finest to pitch you on choosing them. Even if you have a close friend or relative who is a Realtor, as almost everyone does now, be open to choosing someone you don’t know if they are the right person for the job.

A word of caution—Many Realtor’s are trained to push the hard sell and get you to sign the listing agreement before they walk out the door. Don’t fall for this move. They will still be there tomorrow to take your listing. You owe it to yourself to be diligent on this matter and wait until you have interviewed each agent on your list. You do not want to make your decision until you are happy with the commission settlement. After you have interviewed at least three agents, rank them in order of most to least desirable.

Ask for a Discount or Rebate

Before you firmly decide on an agent, ask for a discount on the commission. Don’t skirt around this issue. Be blunt about how much you want them to cut their commission. Realtor’s are trained negotiators. You need to show them confidence in your own negotiation skills before they will even consider your offer. Remember they are selling your house, or writing up your contract, for their livelihood. Needless to say, they take their commissions seriously.

Here are two tactful ways to approach the issue:

“I would love to list my home for sale with you, but need to make the most from the sale as possible for the down payment on our next home. I need a commission discount of _____% to sign the listing agreement today.”

“You seem like you have some great ideas about finding the home that is right for my family. The only thing I am worried about is being left with no cash in hand after the sale goes through. The only way I will be able to buy and home and pay the fees for moving is if you can offer me a rebate on your commission of _______%.”

After you are pleased with the commission agreement, sign the listing or buying agreement with your agent. Remember to approach this issue BEFORE you sign anything.

Once you have the property listed, or have committed to buy, with a specific agent it is much harder to get them to agree to take a commission cut. They are well within their legal right to turn you down flat. They may also find the suggestion insulting and take it as a sign that you do not appreciate what they have done up to that point. Whether or not this may be true, the last thing you want to do is create animosity in this relationship. They are supposed to be on your team, not on the other side. Asking for a discount before the contracts are signed is a whole other story.

How Much to Ask For?

You can realistically ask your agent to cut their portion of the commission by up to 50%, typically 1.5%. No matter how much (or little) you get them to shave off their points, remember that it is better than nothing. Depending on the price of the home, even a ¼% cut on the deal can save you thousands!

Move On

If you can’t come to a commission agreement with the top agent on your list, move on. If you keep looking, you will find the right agent with the right commission, guaranteed. In the world of real estate, there are MANY fish in the sea.

No Frills Deals

If you would prefer to do a majority of the work to save the maximum amount on commissions, consider listing your house with a flat-fee broker. They will put your home on the local MLS (where all the agents go to view available properties) for minimal cost, but be aware that you will have to do all of the marketing and negotiating yourself.

Buyers can also find a similar offer through a firm that offers the least bells and whistles, such as finding and showing you properties, but will automatically rebate 50% of the commission back to you when the deal is done. The go-to company for this service in Seattle is RedFin.

Have you made a great deal with your Realtor on commissions? How were you successful?

Related posts:

1. How to Negotiate Selling a House in a Buyers Market
2. Negotiate! What are you afraid of?
3. How to Negotiate Like a Shark (When You’re Really a Guppy)

Here is an excerpt from the current AT&T wireless contract.

Changes to the terms and conditions: These terms and conditions may be changed from time-to-time. AT&T will post the most current version of these terms and conditions at att.com/MediaTerms or other appropriate location. Please check these regularly to inform yourself about changes to the terms and conditions.

AT&T expects you to stick to what you say you are going to do when you enter into contract with them.  Therefore you also have the right to expect them to do the same.  That include not changing the rules halfway through the game.  If the changes actually affect you, you have the right to ask to be let out of the contract.  Sure they will resist, but if you are persistent and polite when you explain to them that their changes adversely effect you, you will prevail.

Be sure that the changes actually apply to you and don’t just effect other plans.  The customer service reps are well trained to spot these differences and will be sure to use them to keep you under contract.  Remember their contract says that they can drop you if you break it.  So you can drop them if they break it.

This is just one method among many to get out of wireless contracts.  Be sure you find the one that you are comfortable with, you will be defending your position for at least an hour to the reps.  Getting out of a contract with a cell phone company and avoiding the Early Termination Fee(ETF) is not easy.

Remember your mission is work with the customer service representative.  If you lose your cool and become argumentative you risk them doing the same.  If who you are talking to becomes a stick in the mud and won’t budge, ask to talk to someone who can help you.  By being polite, firm, and unrelenting you will succeed.  If you totally lose your position, call back once you have regained you cool and hit it up with an entirely different rep.

Here are a few of our other posts about getting out of wireless contracts:  Getting out of a Verizon Wireless Contract, Getting out of a Sprint Wireless Contract, and Cancelling a Sprint Cell Phone Contract.  I am sure we will have more to come, so stay tuned.

Related posts:

1. Canceling a Sprint Wireless Contract
2. Getting Out of a Verizon Wireless contract
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Using letters or emails, allows you to have more time crafting your message.  If you are a naturally amiable person, then face to face negotiations may not be your strong suit.  If you  want the gravity of your message to sink in before they respond, using a letter may be the right choice.  An of course if you are dealing with a mindless machine of a company (Credit Reporting Bureaus) a letter may be your only option.

Before you put pen to paper or open up Outlook, be sure you have done your preparation.  Understand what your BATNA is, where you want your set point to be, and what emotion you want the other side to feel.  Once you have done all the prep work, then you are ready to get started writing.  Using written correspondence is almost like using the hidden table.  The letter is like Friday from Dragnet, “Just the facts, ma’am.”

Here are a few sample letters to get the mental ball rolling:

Career Negotiation Letter – To spur a response after a job interview

Dear _________,

Thank you for the interview last week.  I am interested in a position at your company.  However, I wanted to let you know that I received another offer.  It is a position at another company that interests me.
I just wanted to check in with you to see where you are in the decision process.  I need to respond to their offer by the end of the week.

Sincerely,

Just something to put a little pressure on them.  Plus it paints you as an in-demand candidate.

Salary Negotiation Letter – To create a set point before the process begins.

Dear__________,

Thanks for the offer.  I really would like to work for your company.  I was expecting a different salary number.  I look forward to talking to you more about it in person.  I just wanted to show more of what I was thinking before we meet.

At ____________ my Salary was ____________ and my benefits were __________.  I do have other offers that are very competitive at ______________.

Again I do want to work for you.  We should talk about this more in person.  Are you available this week?

Sincerely,

Debt Negotiation Letter – Negotiating a lower payment.

Dear__________,

I understand that I owe a debt to your company in the total of $________.  I am facing a financial hardship currently, but would like to continue making payments towards my debt.  I can afford to pay $______ each month until my debt is paid or my financial situation improves.

I do not dispute my debt to your company and I would like to stand by my agreements when I borrowed the money.  My financial hardship has taken me by surprise and I am doing my best to honor my commitments.  I have include a check for the first payment.  I hope that you will accept my offer.  Please respond and let me know.

Sincerely,

Negotiating with the heavy weights in the credit departments over then phone can be very intimidating.  Sometimes a letter is a little easier on your mind and can be very effective, especially if you send it with a check.

While using letters and emails to negotiate can be the right tactic.  Don’t use a letter when face to face would be better.  Letters should be used when they are an advantage, not to avoid conflict.  If avoiding conflict is your goal, take a look at why you are afraid.  What is your fear based on?  If you still think you should avoid the face to face conflict then go ahead with the letter.

One last piece of advice:  Have someone else read your letter.  Don’t tell them anything before hand, just let them read it cold.  Then ask them how it comes across.  They will be able to tell you if your message is clear or if it sounds too harsh and cold.

Related posts:

1. How to Start a Negotiation Blog
2. Goal Setting: Negotiation Preparation Part V
3. Top 10 Salary Negotiation Tips

I have since learned ways to cut down the cost without sacrificing the quality of care.

Research First

While asking a doctor to lower their fees based on a quote you received from another doctor is not kosher, you can shop around. If you need surgery, for example, it might pay to have the procedure performed in the suburb of a big city, rather than downtown. Downtown real estate can cost big bucks and doctors have to pass some of this cost down to their patients.

Ask to be put on a Payment Plan

Sometimes medical care is unexpected and you can end up with a hefty bill afterward. Fortunately, many hospitals and doctors will set you up on a payment plan interest-free for six months to a year. Most hospital and doctor’s offices would rather be paid later than not at all. Even if you do have the money to pay up front, but are tight on cash, opt for this plan so you can keep the money in your pocket longer without paying a dime! This is the option that saved us from having to pay what we didn’t have.

Not Insured, Negotiate

Many health providers will offer you an alternative lower fee schedule if you are uninsured. The only catch to this is that you have to ask. They realize that you probably don’t have insurance for a reason, either you are unemployed or simply can’t afford it, and probably cannot afford to pay the same or more as someone supplemented by insurance might.

Be Respectful, but Firm!

Unlike most other business transactions, you are negotiating for your health. You do not want to hinder the doctor-patient relationship because of finances. Hospital’s and doctor’s fees might be outrageously expensive, but you need to consider the cost and time to save lives.

Related posts:

1. 3 Bills to Negotiate
2. Negotiating Banks Fees and Charges
3. Negotiating a Lower Cell Phone Bill

When I was a real estate agent I worked on my negotiating skills and used them often.  But negotiating with other real estate agents could be just like class was, easy.  Sometimes they are were so removed from the situation, or just wanted to earn their commission that they don’t hold their ground for their clients either.  Now I wouldn’t recommend a home owner trying to negotiate the sale or purchase of their home either.  Emotion and too much at stake can be such a deal killer.  What you need is an agent that is willing to work for you.

There are three basic techniques of negotiation that I would like to explain: Puffery, the Hidden Table, and of course Silence.  I recently sold an old car that we weren’t using anymore, private party, no agents acting for principles.  Now there was some real negotiation.

Ah yes the sticker price.  Most people think of negotiation as finding common ground, the middle between two points.  This is often the case,  so if you are going to sell something set the price high and the middle ground will be near what you actually what for the item, and hey who knows maybe you’ll make a little extra.  So for the 1995 Infiniti J30 that blue books for 3200 and we wanted 3000.  We started out at 4200.

We placed ads on craigslist and Autotrader, the usual places to find buyers for a car.  Nuthin, Nada, zilch, we received absolutely no response.  It was awful, three weeks we waited.  Ok so we lowered the price to 3500.  A few bites but when asked about the condition of the car, we lost ‘em.  We weren’t out to trick anyone or misrepresent the car.  It had some cosmetic issues, but ran great, what do you expect for a 12 year old car.   Ok so the sticker prices on most cars at the lot are high but the advertisements in the papers are for low prices.  In today’s technology driven world we weren’t the only 12 year old car on craigslist.

People weren’t calling because other cars were priced lower and why call on an over priced car when there are cheaper options available. So we lowered the price to 3000 and Bam!  My phone rang off the hook, people wanted this car.  But of course the negotiations were just getting started.  The first words out of most of the callers mouths was what is your bottom line, no really how much is the car, what is my price, how much for cash, like I would take anything else.

My immediate response was The Hidden Table.

When you’re at a dealership and you make an offer to the salesperson, their response is “Let me check with my sales manager?”  And of course your offer is a little low and they counter with a higher price.  Now how come the sales manager is always somewhere else and never comes to talk with you?  They are playing the hidden table; the salesperson is still your friend that has asked about your kids and what you do for fun on the weekends, while the absent manager is the one who wants more of the green in your wallet.

For me it was my wife.  I would say that it was my wife’s car and she needed to get 3000 for it.  I couldn’t negotiate over the phone but if they wanted to come and test drive the car then we could talk.  I would say that this weeded out half of the prospective buyers, but that saved me the time of showing the car to someone who wasn’t even slightly willing to pay 3000.  The hidden table saved me time and kept the price firm at 3000, and I was still able to be a “nice guy” when talking on the phone. I bet I showed the car to 5 or 6 different people.

Here is where I used what can be the most effective negotiation technique ever realized. Silence

Either used when making an offer or when answering an offer, silence can get you to where you want to go.  After test driving the car a prospective buyer offered 2500 all he had to spend on a car.  I deadpanned him.  Nothing, not a word came out of my mouth. 10, 20, 30 seconds past and he said how bout 2700.  Can you believe it, all he had to spend?  He moved towards my price by 200 dollars just in response to my silence.

I then responded with 3000 not a budge from me.  I lost him, 2700 really was his top.  But that was OK I wanted 3000.  The right buyer would come along.  And he did, again I used the hidden table over the phone, and after test driving the car he offered 2600.  Silence from me. How bout 200 dollars off the list price, he said.  Not to be rude and overuse the silence technique I reverted back to the hidden table and restated that my wife needed to get 3000 for the car.  He said ok and a deal was made. Now I didn’t rip anybody off.  Everyone got what they wanted.  He a car and me 3000 bucks.

But I was able to use three very valuable techniques of negotiation.  Even though puffery in this situation didn’t work, it is still a commonly used and effective method.  The hidden table is one that I have used a lot.  “Let me take your offer back to my clients and see what they have to say.”  It is so powerful.  And Silence, the power house of them all; who would have thought that just being still and not doing anything would work so well.  Basically you’re using the motivation of your counterpart against them.

So now you know a few of the basic principles of negotiation.  Give it a try You would be amazed at what you can negotiate, Phone Bills, Cars, Salary’s, Hotel Bills, even some entertainment venues.  It just takes a little practice and it can be really fun, see what you can get.

Related posts:

1. How to Negotiate Your Realtor’s Commission
2. How to Negotiate Like a Shark (When You’re Really a Guppy)
3. How to Negotiate Selling a House in a Buyers Market