From a vantage point, it’s good to be the first person to say a price — whether you're the buyer or the seller. However, confidence in your valuation is key. Too many people ask for salaries slightly higher than their previous ones, only to find out later that the employer was willing to pay much more. Employers rarely negotiate salaries upwards. Research the proper valuation range and set your price at the advantageous end of that spectrum. High if you're selling, low if you're buying. Just make sure you don't overshoot the range so much that you scare the other party away. Over time, these savings add up. For example, I once saved several hundred dollars on a major plumbing job just by starting the negotiation with a lower offer. I’ve saved hundreds of dollars on subscription services for our business in the same way.
One method I've found effective for negotiating better deals and saving costs is the "research and ask" approach. Before making any significant purchase or signing up to a service, I make sure to do my research and find out what competitors are offering. Armed with that information, you can confidently ask the provider for a better rate, additional benefits or some kind of discount that will convince you to go with them over a competitor. This strategy has consistently saved me money on utilities, insurance, and even some retail purchases. The key is in your approach - be polite but assertive, and show that you're informed. You’ve also got to be ready to walk away from a deal if you’re not satisfied. Sales assistants will pick up on your energy if you are genuinely comfortable with saying no and moving on, so be patient in negotiations and don’t be afraid to ask for a minute to think it over before going back with a yes or no. Erika Kullberg, Founder of Erika.com, is an attorney and personal finance expert. Erika is the most-followed personal finance expert in the world, with over 21 million followers, including 9+ million Tiktok, 5+ million on Instagram, 4+ million on Facebook and 2+ million on Youtube. Her podcast, Erika Taught Me, which launched at #1 in Business and #2 overall for podcasts, is regularly at the top of the business and overall podcast charts. Erika is known for her viral catch phrase, "I read the fine print so you don’t have to!" She discovered her passion for educating others about personal finance after paying off over $225,000 in student loans in under 2 years and now creates content on social media to empower others with her financial knowledge. Erika has been featured in Inc. Magazine, CNBC, Today, CNN, U.S. News & World Report, Business Insider and more. www.erika.com https://www.linkedin.com/in/erika2/ @erikakullberg media@erika.com
Always aim lower than what you're willing to pay for something. If you want to buy something for $100, start by offering $90. This forces the seller to negotiate, likely bringing the price closer to your target of $100. If they accept your offer of $90, you've saved $10 and done better than expected. Never reveal your actual target price; instead, offer a lower amount to give room for negotiation. Just be careful not to lowball too much, as this can leave a bad impression and cause the seller to walk away.
One of the most effective methods I've employed for cost-saving is 'hunting for discounts', a tactic that came to life with the founding of Wethrift. Wethrift.com embodies this principle, helping millions of users discover working coupon codes to save on purchases. This tool proved successful not only for my customers, but also for my personal finances. By consistently leveraging promotional offers and discounts, I was able to dramatically reduce my personal expenses on essential goods and services. Another proven tip is utilizing the 'ask and you shall receive' principle. It is surprising how often a simple enquiry can unlock unexpected discounts. For instance, I managed once to cut down my internet bill just by calling my provider, discussing my financial situation, and asking for a better deal. This not only reduced my monthly cost, but also strengthened my relationship with the provider, leading to a win-win scenario. Applying these strategies has transformed my personal financial strategy by instilling a proactive approach towards securing better deals.
Neuroscientist | Scientific Consultant in Physics & Theoretical Biology | Author & Co-founder at VMeDx
Answered 2 years ago
Sometimes, prices are fixed and can't be adjusted. In these cases, leveraging for additional benefits can be very effective. For instance, when I recently bought a high-end computer for my home office, the price was set in stone, but that didn’t deter me. Instead, I negotiated for extended warranties, complimentary technical support, and even free software upgrades. Vendors often have the leeway to offer these extras because they can be cheaper for them yet add significant value for you. This approach has had a noticeable impact on my personal finances. It helps me avoid unexpected costs later on, like repairs or additional services, making my initial expenditure more worthwhile. Plus, getting these benefits can provide peace of mind, knowing you’re covered without extra out-of-pocket expenses. It’s a win-win situation that goes beyond saving money; it maximizes the overall value of your purchases.
My dad taught me how to negotiate as a kid and it’s stayed with me till now. The trick is to start with the all singing all dancing option. Opting for the full spec product and negotiating the price down as far as possible is just the start. From there, remove extras, slashing the price further until you reach the level you’re actually looking for. By starting at the highest ticket price, where the salesperson has far more wiggle room, you’re going to get the best discount possible. This technique works well with the big stuff, from kitchens to cars.
As a family law attorney, I negotiate settlements daily to secure the best outcomes for my clients. Personally, I find that thiroughly preparing for any negotiation, whether business or personal, allows me to approach discussions strategically. For example, when purchasing my home, I compared prices from multiple lenders and realtors, then used their competing offers to negotiate over $20,000 off the asking price. Though time-consuming, this approach has allowed me to maximize my budget and afford the lifestyle I want. The key is staying flexible but firm in your position. Provide concrete evidence for why an offer isn’t satisfactory, and suggest a compromise. If discussions reach an impasse, don’t be afraid to walk away—you can often get a better deal by revisiting negotiations again later. Regular practice has given me confidence in advocating for win-win solutions. Applying this mindset to daily life has saved me substantially over time.
As the Founder of Rocket Alumni Solutions, negotiating with customers and vendors is second nature. When building the company in college, resources were limited, so saving every dollar was critical. I was able to secure office space for $400/month, 1/3 the going rate, by offering to mow the lawn and handle small repairs. This allowed me to invest the $800 in savings into Facebook ads that generated our first sales. Personally, my frugal nature has allowed me to save over 50% of my income each year. I drive a 10-year-old Toyota, cook meals at home, and find free hobbies, like hiking and reading. These habits have enabled me to pay off my college loans in 2 years, despite earning an entry-level salary. Making saving a priority, in business and life, creates freedom and opportunity. At Rocket Alumni Solutions, analyzing expenses and renegotiating with vendors is an ongoing process. Bringing customer service in-house cut costs 60% compared to outsourcing. We also request rate reviews from vendors annually, providing data on competitors' pricing to get the best deal. Continual optimization has reduced our costs 10-15% each year, savings we pass onto customers through lower prices. Small changes add up to big savings over time. Building the habit of saving and negotiating better deals has been life-changing, both personally and professionally.
As an expert web designer, I'm always looking for ways to cut costs for my clients and my own business. One strategy that has saved me thousands is renegotiating with vendors and suppliers regularly. For example, by committing to a long-term contract for website hosting, I was able to lower monthly fees by over 60%. This allowed me to pass on savings to clients and increase margins. On a personal level, I practice frugality in all areas of my life. I always buy generic or store brand items, cook most meals at home, and avoid expensive hobbies. A few years ago, I decided to stop leasing new vehicles and instead purchased a reliable used car with low mileage. My car loan payments dropped from $450 to $250 per month, saving me over $2,400 each year. The key is making saving money a habit through continuous optimization and reevaluation of expenses. While small changes may not seem significant, they add up over time. After 15 years in business, I've found that sustainable growth and strong financoal security are achieved slowly through consistency and discipline. Money-saving strategies employed in both business and personal finance have allowed me to pay off debt, build wealth, and gain true financial freedom.
As the CEO of a rental property management firm, negotiation is a key part of my role. For example, when contracting cleaning and maintenance services, I bundle multiple properties together to obtain at least a 20% discount. This strategy has saved my company over $500,000 in the past five years, allowing us to invest in improved online booking software and employee benefits. To save on personal expenses, my family cut cable service and drove used vehicles for years while the business was growing. We made saving a habit and paid off the mortgage on our home a decade early. Small choices add up. The best way to cut costs is continual analysis and negotiation. We regularly renegotiate with vendors and utilities, often saving 10-30% per contract. Bundling services and paying annually instead of monthly also significantly reduces costs. While time-consuming, diligent negotiation and a savings mindset have been crucial to profitability and building financial security.
Throughout my career as a businessman and attorney, I've found that the 'win-win' approach is one of the most powerful strategies in any negotiation setting. Rather than adopting a 'zero-sum' mindset where one party's gain is the other's loss, I strive to identify the mutual benefits for both parties. This approach fosters trust and encourages cooperation, ultimately manifesting more favorable deals for all involved parties. In my personal experience, this approach played a key role in the acquisition and growth strategies of a transportation company I acquired in 2004. By applying win-win negotiations with suppliers and potential acquisition targets, I was able to significantly increase revenue and save substantial costs. This financial upside not only positively impacted the business, but also my personal financial situation, as the company represented a substantial part of my income and investments. I encourage everyone to remember that success in negotiation often lies in finding and expanding areas of agreement, which in effect, saves costs and better positions your financial health.
From my experience, a proven method for negotiating better deals and saving money lies in the power of 'planned patience'. What I mean by this is doing your due diligence - invest time in research, understand the market, and be patient for the right offer to present itself. For instance, when faced with significant decisions, like purchasing a car or planning a trip, I invest considerable time in comparing prices, understanding seasonal fluctuations, and determining the best time to secure a deal. This has been instrumental in significantly reducing my personal expenses. Once, while planning an educational trip for over 100 students at OPIT, my 'planned patience' approach helped cut down on costs by almost 30%. By not rushing into booking and negotiating with multiple service providers, I managed to get better deals, while ensuring a quality experience for our students. My approach not only impacts my personal finances but also proves beneficial in my professional responsibilities, achieving budget efficiency without compromising on quality.
Coming from a background in e-commerce and transitioning to the educational sector, cost-saving negotiations have been a vital part of my businesses' growth. One method that has proven successful for me is what I call 'empathetic negotiation.' This approach puts understanding the other party's position and needs at the forefront. For instance, when setting up the online infrastructure for OPIT, my current technology education institute, I negotiated with various SaaS providers. I dug deep to understand their business goals, challenges, and margins, leading to mutually beneficial deals. This empathetic negotiation not only led to cost savings but also fostered stronger business relationships. On a personal level, it significantly increased my financial stability and allowed for a larger budget in impactful areas like R&D, directly contributing to our aim of making quality tech education accessible.
As an entrepreneur in the competitively fierce food container technology industry, mastering negotiation skills has been key to my personal and business financial success. One strategy I've found to be highly effective is cost transparency. This involves breaking down costs to show vendors, partners, or contractors where every single penny is distributed. By doing so, I've been able to negotiate better deals by justifying why I can't afford to pay anything more. For example, last year, I managed to cut 20% off a cost due to the vendor having a clearer understanding of how their pricing impacted our overall expenses. Another tip revolves around having multiple alternatives at hand. This idea is rooted in the principle of BATNA (Best Alternative To a Negotiated Agreement). It gives me leverage power during discussions, demonstrating I am not dependent on any one party. Implementing this tactic has led me to save 15% more in costs than previously, significantly boosting my personal savings. By practicing these techniques, I've been able to create a financially sound environment, instrumental for both my company's growth and my personal financial health.
As an attorney, negotiating settlements is a crucial part of my job and a skill I’ve honed over the years. Personally, I’ve found that preparing thoroughly for any negotiation gives me a strong position to secure the best outcome for my clients. By gathering evidence, precedents and anticipating counterarguments, I enter discussions with confidence and flexibility. In one recent case, this approach allowed me to negotiate a settlement that was over twice my client’s initial demand. Outside of work, my wife and I make a habit of never accepting the first price offered for major purchases. We compare prices from multiple vendors and don’t hesitate to walk away from a deal that isn’t right. For our last vehicle purchase, this tactic saved us over $5,000 off the asking price. While time-consuming, negotiating in this way has allowed us to maximize our budget and afford experiences we otherwise couldn’t. The key is staying courteous but firm in your position. Provide concrete evidence for why an offer isn’t satisfactory and suggest a compromise. If all else fails, don’t be afraid to walk away – you can often get a much better deal by revisiting discussions again in the future. Successful negotiation is a skill that applies to both personal and professional life. With regular practice, you’ll gain confidence in advocating for win-win solutions.
One helpful method I've used is to use long-term connections with suppliers to obtain better pricing. By entering into exclusive or long-term contracts, we assure consistent business for our suppliers, who give us discounts and priority service. For example, after negotiating a two-year exclusive contract with our key components supplier, we lowered our prices by approximately 15%. This technique not only gets us better bargains but also helps us deepen our commercial connections. On a personal level, using this strategy for home renovations, such as negotiating a package deal with contractors for numerous tasks, saved me a large amount of money. By offering a bulk project rather than separate jobs, I saved approximately 20% on total costs. This strategy not only reduced my expenses but also increased the value of my home. These experiences demonstrate the value of good, trusting relationships and the rewards they may provide. It is more than saving expenses; it is also about delivering value for all parties involved. This strategy has contributed to JDM Sliding Doors' reputation as a trustworthy and customer-focused firm.
One personal method that has significantly helped me negotiate better deals and manage costs is the "value-first" approach. Early in my career, when founding eLearning Industry Inc., resources were tight, and maximizing every dollar was crucial. Instead of focusing solely on price during negotiations, I emphasized the mutual value our platform could offer, such as extensive reach and targeted exposure in the e-learning sector. This strategy often led to better terms and added bonuses like longer contract durations or additional services at no extra cost. This approach not only helped in securing more favorable deals but also in building long-term relationships with vendors and partners, who were keen on the mutual benefits. Over time, this has substantially decreased our operational costs and increased our negotiating leverage, positively impacting our bottom line. By consistently showing how partnerships with our platform can yield high returns, we've managed to sustain and grow our business significantly, proving that putting value first in negotiations leads to cost savings and better deals.
Throughout my professional journey as a financial advisor and attorney, I've developed an invaluable skill—the patience for the right opportunity. In my experience, negotiation is less about persuasion and more about grasping the perfect timing. This approach has played a key role in several critical business and real estate negotiations, resulting in significant cost savings. For instance, by simply showing patience and not immediately closing the deal, I once managed to buy a property well below the asking price—a step that significantly reduced my mortgage payments. Awaiting the correct timing can make the other party more eager to negotiate, whereas rushing into agreements can lead you to accept less favorable terms. Practicing patience and utilizing it as a strategic tool in negotiations has efficiently contributed to my personal financial stability, and could be equally beneficial to others.
I've implemented a negotiation strategy based on the rather well-documented cognitive bias known as anchoring bias. This concept holds that the value quoted first in any given negotiation has a tremendous level of influence on the values secondarily quoted by both parties. To take advantage of this, I spend a lot of time determining fair market value for a product or service prior to any form of negotiation. For instance, prior to negotiating my cable television bill, I gathered all the different competitor packages and promotional offers that existed within the marketplace. With this information in hand, I use the concept of anchoring when I initiate the negotiation with a lower introductory offer anchored at that competitor's pricing. By making this anchor, I am setting, in effect, a reference point for the negotiations and increasing my chances of obtaining a final price closer to my preset target.
One personal method I've found incredibly effective for negotiating better deals and saving costs is what I call the "Value-First Approach." This strategy, which I developed through my experiences in the SEO industry, focuses on demonstrating value before discussing price. In practice, this means I always prepare a detailed analysis of how I can add value to the other party's business or situation before entering negotiations. For instance, when negotiating with a potential client for TopicalMap.com, I first conduct a mini-audit of their current SEO performance and present a roadmap of potential improvements. This approach has consistently led to more favorable deals. In one case, by demonstrating how our topical mapping strategy could potentially increase their organic traffic by 200%, we secured a contract 30% above our initial target price. Personally, this method has significantly impacted my financial situation. By focusing on value creation rather than cost-cutting, I've been able to grow TopicalMap.com rapidly while maintaining healthy profit margins.