Bargain and save money

Savvy negotiators know that politeness, friendliness, and a smile are harder to resist than tough talk. “A my-way-or-the-highway approach limits you, because if you then reduce your demands, you run the risk of losing face,” says Steven Cohen, president of Massachusetts-based Negotiation Skills, which teaches corporate clients how to sharpen their bargaining techniques. “Negotiation isn’t a competitive sport.” Here are other tips for smart bargaining:

Assume everything is fair game. Retailers drop prices all the time and call it a sale. “It’s not in the seller’s best interest to charge one price to all customers,” says Stephen Hoch, a marketing professor at the Wharton School of the University of Pennsylvania. “You charge different prices to different people based on their willingness to pay. As long as you sell something for more than your cost, you are making a profit.”

Don’t be intimidated by a title. Hoch says that many people are reluctant to confront doctors or lawyers. But John Santa, M.D., director of the Consumer Reports Health Ratings Center, says that almost everyone in health care—whether physicians, hospitals, labs, or imaging departments—will eventually accept less if you dispute an out-of-pocket charge. That said, he adds, they’ll try to wait you out, make you feel responsible, and drown you in information. Abbie Leibowitz, M.D., co-founder of Health Advocate, which specializes in health care advocacy and assistance, says his company can often cut charges in half for uninsured patients.

Be willing to bargain for big bucks. You can’t win if you don’t try. A 23-year-old college grad (he didn’t want his name used) was accepted into several law schools and was offered generous scholarships by some. As his commitment deadline loomed, two of the schools increased their offers, but his first choice didn’t. He approached the admissions officers of his top pick, told them that another school had upped the ante, and asked for more ($40,000 a year), knowing it would never agree to that amount. The school, which had initially offered $30,000, countered with $33,000, and they sealed the deal.

Give sellers a reason to negotiate. If you’re a loyal customer, say so. If you’re at a mom-and-pop store because you like to shop locally, say that. Tell the car dealer if you intend to bring your vehicle back for servicing. Alice Osner of Denver, Colo., forgot to make a credit-card payment. She contacted customer service to acknowledge the oversight, pointed out her track record of on-time payments, apologized, and asked the rep to waive the $25 penalty plus interest. He did.

Ask open-ended questions. It’s easy to be turned down if you ask a yes-or-no question. Say you want a 60-inch television but can afford only a 52-inch model.

Consumer Reports