Learn to haggle and drive a harder bargain
It is better to be cheated and laughed at than to know how to bargain, reads a line in Thomas Holcroft’s 19th-century Travels. Even today, the art of haggling is regarded as most unBritish – something to do in Marrakech or Istanbul, but when at home, best left to spivish wheeler-dealers. As a result, consumers are losing millions of pounds.
Dominic Littlewood, who teaches shoppers how to haggle for the BBC programme Don’t Get Done, Get Dom, says that he continues to be surprised at where you can negotiate. He has recently secured savings at Curry’s Digital and – by telephoning customer services – at Amazon.co.uk. He enjoys a flat 30 per cent off at Ted Baker after discounts became routine. And at Waitrose, a chat with sales staff knocked 10 per cent off a £999 computer. “Supermarkets are unlikely to come down on groceries,” he says, “but you should try it on all higher-value items.” Littlewood concedes that his television persona helps, but he believes that all consumers can make worthwhile deals with a little effort. He adds that the best discounts can be obtained on more expensive goods (in the hundreds or thousands of pounds), especially clothes, electronics and jewellery – products with big mark-ups that date fast. He regards 30 per cent off these as standard and has achieved cuts of 60 to 70 per cent.
Some initial research is essential. A trawl of retailers’ websites and comparison sites, such as Kelkoo.co.uk, should locate the best buys and enable you to set the amounts you aim to pay and will not go above. You can approach the cheapest merchant or use the information elsewhere. “You can tell a retailer that you could do better online but prefer its shop. Ask if it will do a deal,” says Littlewood.
Wherever you decide to bargain, confidence and rapport are vital. Exchange names with the sales assistant and be sure to keep the conversation warm. If staff state that a price is fixed, ask to speak to a manager. Failing that, says Littlewood, ask the manager to call head office. “The hardest part is the first step: getting them to offer something off,” he adds. “Once they do, the floodgates open.”
The initial approach can be a straight request for money off. If you are dealing with a chain, however, you may need to give staff a reason to discount, such as shop-soiled packaging (see list, below). Either way, Littlewood advocates a robust approach. “Go in with an offer so low it will insult them,” he says. “Watch their face screw up like a lemon. That’s good. No one will ever tell you that they won’t do business with you, to get out of their shop.”
Where this strategy works, sales staff will – after negotiation – offer a smaller discount around your initial target. Once there, you can try asking for a free extra to seal the deal, say, a tie with a suit. If negotiations stall, take time out for a cup of tea at a café.
“Cooling-off time can help. But storming out in the hope of an offer doesn’t work. Most people will let you walk,” Littlewood says.
Other areas where you can negotiate include the mobile phone and broadband markets. Rob Barnes, of Moneysupermarket.com, the comparison website, says that prospective customers cannot haggle, but mobile users coming to the end of a contract may be able to negotiate extra minutes or texts by threatening to leave. He adds that the significant minority of broadband customers not achieving the advertised speed – 8Mb, for example – should demand and expect a discounted tariff.
Rates on certain financial products are also negotiable. Tracy North, of uSwitch.com, another comparison site, says that consumers nearing the end of credit card contracts can sometimes secure a reduced APR for a follow-on term. Meanwhile, renewal quotes for insurance can be as much as 10 per cent above initial quotes. It pays to check your insurer’s offers for new customers on the comparison sites and ask it to match them. If this does not work, use one of the sites to switch to the better deal.
One area where most of us do know to haggle is the motor trade, where price, extras, finance and part-exchange are negotiable. It is especially important to shop around as one dealer may be desperate to make a sale. Where possible, it pays to say that you are able to pay by cash or cheque on the spot. The “how to negotiate” guide at driving.timesonline.co.
uk has more advice, including the suggested opener: “I would love to buy this car but my husband/wife will go nuts if I pay this amount. What can you do for me?”
Bargaining is also the norm for the biggest transaction most people make: buying a house. Miles Shipside, of Rightmove, the property website, says that sale price information from the Land Registry – available free on his website and others – should help buyers to set their target and maximum price. He adds that 5 per cent off asking price is often achievable and suggests testing lower offers on several properties: “The owner of one might have financial distress or a deadline to move. It can also pay to emphasise the cost of work needed.”
If you do buy a house, the chances are that you will need work done. Negotiating with tradesmen is the stuff of nightmares for some, with research from Gumtree.com, the listings website, indicating that one in ten people has no idea what to pay for basic jobs. Sophy Silver, of Gumtree, says that the key is to obtain at least three quotes, sourcing by word of mouth, where possible, and to ask what friends paid for similar work. “Ask for quotes with and without materials,” she adds. “Buying them yourself can save a significant mark-up.
“One caveat is that less-experienced tradesmen may be more willing to come down on price than those with plenty of work and a solid reputation. Try to keep a balanced view.”
Looking for plumbers or decorators may make you long for a holiday. If so, room rates are one more area where prices are rarely fixed, especially out of season. Priceline.co.uk allows users to make offers for rooms in 15,000 European hotels. Compare deals with the last-minute prices at Laterooms.com, which are discounted by up to 70 per cent. For a chance to appear on Dominic Littlewood’s television programme, call 0207-713 6868.
CASE STUDY: If at first you don't succeed...
When Aideen McGrath, of Clapham, South London, needed new door locks last month, she expected a big bill. But the £300 she was quoted by the first locksmith she called was too much. When he insisted that his price was nonnegotiable, she went online and found two more on Gumtree.com. The first also quoted high, but the second asked for a “more reasonable” £206.
Rather than settle, she told him that she would pay £120 in cash, final offer. “I didn’t expect him to take it, but he said that he’d do £140 and I said yes. I was delighted with the saving and he did a great job.”
Ms McGrath, left, says that haggling is in her blood. “It’s an Irish thing,” she says. She likes to buy antiques and says that offers of cash on the spot almost always do the trick, but she admits: “I couldn’t bring myself to try it on new items; I’d be so embarrassed.”
Some retailers will give a discount for the asking. In bigger stores, though, you may need to give sales staff a justification. Here are some classic arguments.
It’s cheaper elsewhere. Most high street products are cheaper online if not in other shops. Research the market and ask a retailer to beat, or match, the competition. Dominic Littlewood says: “Do not buy the argument that shopping online is less safe. If you use a reputable site, it isn’t.”
It’s damaged. Thousands of products are damaged or shop-soiled every day. Look for any imperfections you can live with – a torn box is ideal – and ask for a discount. Also check whether a shop has a store of imperfect and display goods. “A lot of them do,” says Littlewood.
It’s obsolete. You should make much of the age of a product, especially if it has been superseded by newer models. Some retailers may have out-of-date stock that they are keen to shift, such as antiquated DVD players.
I’m a student. If you are a student, a pensioner or simply a frequent customer, say so. You never know which label might help.
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