How to Negotiate & Save Lots of Money

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Mandy Woodriff Santo's. That one is so clutch. If you don't do anything else today, scroll back to episode two sixty three and queue that up to play next, because it is information you will want, even if you're happy in your job right now. Listen to this episode because it can only help you with your career growth and your salary negotiations. So two sixty three, Mandy Woodriff Santos, you will thank me later.

and doing poor research on pricing. These two really do go hand in hand, so there's no real point in separating them for the sake of this podcast. So essentially one of the biggest mistakes that we can make is trying to negotiate without actually having real numbers in mind. That's not to say that when we start negotiating we can't kick it off with something like is this your best price? But we need to know in our own mind what am I willing to pay for this thing?

What number could we reasonably come to and me be pleased with that, feel like it's reasonable or a good deal. And that again is paired with having done real search what are the going rates for that good or service, so that you can be well advised on is this

going to be a good number. You can even utilize that research in your negotiation of whatever it is a good or a service to be able to say, oh, well, i've been able to find let's say, a similar phone plan for X amount of money, maybe even list off who it is that you've been able to find that rate and can you do better? So having done your research, having numbers in mind before you get to the negotiation table,

so to speak. There may not be a table though, just beware, it may just be you standing there.

no longer accurate. So doing your research on pricing, having the options of the current pricing options, and going in with the best most current knowledge is really important. And like for goods, that might bean going to Amazon or Target or Walmart dot com and looking at the price new and then if you're going for used, you'll take fifty percent off of that if it's kind of lightly used. I would say if it's brand new with tags, maybe

seventy five percent of the brand new price. And then if it's like really well worn but still good, then you could even maybe negotiate down to twenty five percent of that full price, butually somewhere around fifty percent of full prices where you want to be in your negotiation

for goods. So those are the places where I go to, and I also go to just Facebook Marketplace and just compare what else is going like for dressers, what price are other dressers going for that are sold and versus sitting there for a long time, so that I can have more leverage to say, hey, I can get this fast, and you might be able to get a little bit more off if you say you can get it fast, but you want to make sure that it's in general line with what else is on Facebook Marketplace at the time.

So the next one I also have a personal experience with is overhaggling. So haggling is one approach to attempt and they use the word haggling a lot. In the next article we'll get into haggling. It triggers me, I think.

She says one of the most common well, this is a quote from somebody, but one of the most common mistakes I see is overhaggling, or essentially customers haggling to the point where the business owner will actually add an inconvenience fee to the service due to time already wasted from the outset. So I don't think it's ethical. I don't know if this per se is true, but my experience with overhaggling is I used to work at The Gap and longtime listeners of the show will have heard

this story on every Negotiating episode we've ever done. And there was a mom buying clothes for her kids that worked at Gap Kids, and they were buying a lot of stuff and her dad, so Grandpa Pop Pop, was there and they were ringing out, and he was like, what discount can you get me? And I was like, well, if you sign up for a GAP card, you can get this much off. And I was a robot. The only thing they cared about was how many Gap cards you could sign people up for, and not how much

merchandise you could sell. If that tells you anything about the store credit card industry. That's all they cared about. So that was all that I could offer them. That was the only sale going on right then. It's probably a weekday because we had sales every weekend. It's not like you probably could have postponed the shopping trip three days and there would have actually been a discount. But

there was just nothing that day. And that dude pressed me so hard, verbatim, saying, you're going to give me this credit card discount without me signing up for the credit card. And I was like, I literally can't because if I key in this code and you do not pay with a GAP card, it will kick the code out, like, it won't allow the code.

argument should I use in this negotiation? Or what are alternatives to this deal? Or what terms could I trade in this negotiation to get what I want? And so much more so you could essentially plug in what is the deal that you're trying to negotiate and let AI do the work of what is it that I'm missing? Because sometimes we just don't know what we don't know, especially when it comes to those various fees and how

services are charged or the going rate on deals. When we talk about coming in with a number or having done your research, that doesn't necessarily mean that you've got to have put in a ton of your own time. We can utilize AI to our benefit to ask chat GPT what do I need to know here? What are the terms that I can negotiate? How low could I possibly go? What's even a script? What wording can I

be using? So I've not done this yet. This is honestly the first time that I'm hearing of this little tip, so thrilled about it. You bet your bottom dollar, I'm gonna be out here negotiating all of my bills using chat GPT now.

or research that would be taxing for you. But chatgypt can do it very quickly, so it alleviates that stress from your brain so that you can make better decisions longer throughout the day. So I really like, I know CHATGYPD can't crawl like actual websites, but if you're like, what's the going rate for internet in my city? What are deals that are happening, that it can give you an idea of where to start so that your research is faster and yes, and it can give you like

verbatim scripts stuff like that. So if you haven't signed up for chat GPT, if you've been nervous about it, or you're like I don't need that. When I first heard about it, I was like, I don't want to try this. I think this is a scare, this is a spiral, this is a rabbit hole. But I've been very interested and excited about the capabilities of this free technology. For now, it's free to help us save money. So embrace AI before the robots take over, use them to

save money. That's it, Thank you for tuning in today.

that you know of, the Internet knows. So the article says that assessing the long term consequences of your decisions could mean occasionally paying a little more upfront for favorable terms, and so this isn't like paying more upfront for an extended warranty, but for better quality or for maybe some kind of I don't want to say warranty, but some kind of like plan that you know that you will use or know that will give you peace of mind that's still affordable. Peace of mind can sometimes be just

as valuable as saving money. So yeah, definitely consider the long term value. If you're buying something used, then don't shy away from higher priced items that will last longer. That's kind of why we buy used, not just for the environment, not just for the money saving, but so that we can not have to buy things as frequently.

The worst they can do is say no to you, and I would take that a step further than just saying get over it. By practicing, have chat apt create scripts for you. Just get used to hearing these words come out of your own mouth by yourself in a room. That's fine. Maybe pull a friend in with you, someone that you trust, and kind of go over how this conversation might go, and then start with like low level stakes. Maybe do a phone call before you try to negotiate

in person. Sometimes that can feel a little bit better. Or use the chat function with whatever good or service that you are trying to negotiate. Sometimes we can negotiate our internet bills just chatting literally typing back and forth to their salespeople or their customer service. So start small, start on your own, do some practice, and essentially keep reminding yourself that the worst they could do is tell you no.

twenty one. They had just reopened after the pandemic, and you had to make reservations for the parks, but the only park that had reservations available was Animal Kingdom, and so like, we couldn't. I didn't want to go back to Animal Kingdom three more times. Huh. So we just didn't use it. And Travis is like, I want my money back. I didn't use the whole ticket, and I was like, but I bought it. I shouldn't have bought the four I should have just bought like what two

or three? Like it's my fault. I deserve to pay that money. And he's like no, and so he calls Disney and he gets a partial refund. Did he I wasn't going to do that, no, Yeah, and that's why he does the negotiation in the household. So yeah, I get it.

a deal. So being polite, staying positive, using your good manners and your kind words, just overall being pleasant to work with is going to get you more likely the deal that you want. And with that said, pairing it or holding the tension if you will, with not being a pushover. So being polite doesn't always mean being overly accommodating.

You can absolutely know your number, your boundaries, what you will and won't do, the number you will do, the number you won't do, and being willing to walk away. Failing to close a deal is not a breach of etiquette. If you can't come to terms with the person that you're negotiating with, it's also okay to walk away. So being kind but having your own limits and boundaries, being willing to walk away, these all can be true at the same time time.

want to go into number four. Really, Next is be frugal not cheap. Hey, oh you know that, yay, he says, do bid to your advantage and don't blow a good deal looking for a better one. So bidding to your advantage, start by offering less then you're ultimately willing to pay. That is just as a seller, we always list items for about twenty dollars or twenty percent less more than

what we're wanting to accept. So as a buyer, you can start with maybe thirty dollars less than you're willing to pay or twenty five percent less than the listed so you'll end up somewhere in the middle. But don't blow the good deal looking for a better one. So if when you're presented with a strong offer, take it. When you have met somewhere in the middle, don't keep going, don't annoy the seller, just take it. And there's also another don't to This one is don't give lowball offers

with a little chance of success. That's insulting. It's annoying. I know that very few people listening to this would ever do this, but it tells the seller you're not serious. It starts negotiations off inhospitably. So again, before you name a price, know that the seller's probably going twenty dollars or twenty percent over what they're willing to take. So just go thirty forty dollars less, twenty five, thirty percent off, and then see where you can end up in the middle.

They might be willing to just part with it at that thirty forty dollars off or thirty percent off if you're like I can pick it up now in an hour or something, so you may luck out on that if you also put speed behind, but normally you land somewhere in the middle and be okay with that. That's great. Again, tether your expectations to the reality that things are more expensive now than they were four years ago.

come with their cash, and do it immediately. And I can vouch for that as well. When I have sold things, I don't want to waste a ton of time going back and forth with people holding it for days or weeks. If someone's going to tell me they're going to be

at my door in an hour, that's fantastic. And a lot of times in those instances, if you are actually following through, not just texting things to make someone feel good about themselves, but getting in your car and following through, then you are more likely to also be able to get the best possible deal because you're the first one there. You're the first one showing up the whole cash thing. As far as private sales go, that's kind of a weird one to me, Like, I don't have a point

of sale system, I can't take your credit card. Of course you gonna pay me cash, So whenever someone's in my Facebook messenger or trying to buy something from me like cash. Now this off from like, of course you're paying me cash. I don't take credit cards.

worked out for him because he's well discerning. But that is I mean a lot of people are using Venmo and cell now, a lot of people prefer Zell.

That was the case we got a nice discount on paying cash for our countertops, so definitely still use that as a bargaining tool. Just know it might not go as far in your more smaller private sale deals. But then also pairing that with not rushing, being willing to act quickly if you are for certain that this is the good or the service that you want, but also recognizing that you're not beholden to anybody. You don't have

to make a purchase out of courtesy. Trust your gut if you're feeling as though you know what actually even if you have some sunk cost the negotiating table, if you're still not certain about it, If it doesn't feel like the best deal to you, you don't need to have a sense of loyalty to this deal. You can walk away.

a few places where this might be relevant. So if you're in the market for anything from these retailers that you might be able to take this into consideration, like have a plan and still keep a budget, but don't be a robot about it. So if you see the deal, then you can pounce on it. So here are a couple like big box retailers that you can negotiate at. The gap is not on this list, I'll just put

that right out there. Gaps not on this list, but best Buy, floor models, open box items, stuff like that you can negotiate on. We have negotiated on televisions from best Buy Brand New just the box is open. So if you are looking for a TV and you find the one you want it at best Buy, negotiate it for it. This is something you want to pounce on because it's something that may not come around again. Home

depot and lows. If you're doing renovations, like Jill said, you can obviously scratches dense dings if you bring that to an associate, they can give you a lower price with very little haggling. Poor quality lumber. Floor models are all over the place. You'll see them denoted by certain color tags, and then sometimes stocking errors. This doesn't always work, but if you see something you want and the price looks too good to be true, then it could be

in the wrong section. They might give it to you at the price that it's marked at. So a smidge of talking would be required there and doesn't always work, but sometimes Sam's Club Costco. Again, like floor model stuff produced that maybe at the last days of its life. Tires never should be stopped bought at sticker prices. Warehouse

stores will definitely discount tires, Jill already said. Furniture stores, but even Walmart and Target, if you know what you're doing, you can haggle on some stuff there, like damages dings. Target will give you thirteen percent off damaged items food. Again, that's near.

research comes in. If you find the same thing cheaper somewhere else, bring that information to them and they can let you know if they can price match it. Very often they will price match it. So all that to say, don't rush, don't take advantage of sales just because they're sales, because they're marketing poys. Have a plan, don't be a robot. If you see these like really good unique deals at these retailers and it's something you actually need, then get it. Yeah,

take advantage of it. Yeah, negotiate it.

sixty dollars instead of one hundred and thirty. And it definitely these habits that you guys talk about on your episodes have greatly reduced you know, impulse purchases among other you know, big hitters too. So I'd just like to say thank you. And like I said, this particular bill will add value to my life because you know, decreasing groceries and also being able to spend time with my two year old that loves plants and watering them.

But instead of buying one hundred percent of things new, we just want to lower our percentage of buying things new and full price.

with yourself. And that's amazing and well done, Rachelle. And if you all have a Bill of the week about negotiating with other people, with your spouse, with your child, with yourself, about limiting impulse purchases, creating a pause, or you are a bill and you've not even done any of those things. But you've lived your life with the name Bill. Visit Frugal friendspodcast dot com, slash Bill, leave us a bill, Thank you Bill, And now it's time for the lightning round.

At Home Goods, Marshalls, DJMax, all of these places you can negotiate. Most of the time, it's on things that are already marked down clearance items, and they can know how long something's been out on the floor and mark it down even further. This one however, was not on clearance. But I just liked it a bunch, and I did my own survey of the chairs and found some imperfection, some loose threads, a spot that seemed to have a small stain on it that I wasn't sure if I'm

going to be able to get out. I'm okay living with the stain, but didn't want to pay full price for some of these imperfections, and so I pointed that out. The manager inspected it and they gave me twenty percent off. I forget what the exact savings on that would have been, but I want to say at least one hundred dollars one point fifty was marked down off of the price.

We haven't even bought all of our flooring yet. We just we pounced on a deal that was our flooring that we wanted. We weren't ready to buy all of our flooring yet, but we saw the flooring that we wanted and we bought part of it because it was a deal, it was open box. We did the same

with our appliances. So I think I have an eye for when the best deals are offered at different stores so that I can just pounce on the deal, and then he has the eye for imperfections that he can negotiate down and will ask anybody for a lower price on anything, whether or not his perception of the price is tethered to reality.

percent off. If you are trying to negotiate just at the sales desk, usually the best they can do is ten to fifteen percent, or they'll have to make the call back to the manager. And sometimes you're not going to do as well because of the inconvenience of that pulling them away from their department, or just maybe not even getting the manager and missing out on it or needing to walk away, So do your negotiations within that department.

chef's kiss. Already making changes in my life based on this one. And I'm a serial spender, wow, Kitty leg Yeah, there's there's room for growth. We're glad you're here. Yes, thank you so much. Yeah, if you enjoyed the show, please take a minute to leave a rating and review. It helps potential new listeners know what our show is

all about. Know that we don't say cupon and hoard everything and revolve your life around saving money, but revolve your life around the things that matter most, and just make sure you are spending enough to afford it. See you next time.

it to me. But part of our problem was not having a number in our heads ahead of time, or at least having talked about it. So I'm like one hundred dollars on a long flight per person, I would do that. So if there's room, we might pull the trigger on an upgrade. We'll see. I kp posted.