Let your feet do the talking. Negotiation 101

It's often said that you won't win a negotiation unless you're willing to walk away. I'm struck, however, that the only times I see this born out in my own experience is when I'm not really negotiating, I actually AM walking away. Case in point:

I signed up for a free trial of a popular online meeting application. I used it several times, but I found a competing program I liked better so I cancelled the trial. Today they offered me a 20% discount to come back and re-activate my account.

This also happened years ago when a client asked me to evaluate a popular real estate investing program that seemed too good to be true. I ordered the materials for about $200, spent a few hours going through them, and decided it was a waste of money. I called to take advantage of their money back guarantee and the sales person on the phone offered to let me keep the program for $50. That's a 75% discount!

So here's the moral of the story.

1. If you're not at least asking for discounts you're leaving money on the table, for everything from that new pair of jeans to your web hosting.



2. Walk away. Most of the time you can come back later anyway.



3. Don't take advantage. If you've already agreed to something don't go back later and ask for a price cut. This shows bad faith and it's the quickest way to sour a relationship. Everyone expects negotiation at the beginning of the deal, but if you try to change the terms after everyone is committed you're using people. That kind of stuff has a funny way of coming back to bite you later.

Comments

[frugalCPA]

Ahh, 75% discounts rock. I like how succinct this post is, and agree that in a competitive market place, this is a great strategy. It reminds me of bargaining in Tijuana, Mexico, for a fake Rollex. Your examples are a great reminder that most of us can bargain for everyday services too, not just knock-off watches!