This is the second part in the frugality in action article series. In the first part, we discussed how smart bargain shopping can help you with your holiday shopping. Now, we will be focusing on the negotiation part of that shopping experience.
If you really want to practice a frugal way of life, you will never settle for the price on the tag. There is always room to negotiate. Always haggle for the best price on the items you want to get. That is how you can stretch your limited resources so you can live below your means.
The role of negotiation in a frugal lifestyle
If you want to learn how to negotiate, you want to define it first. Investopedia.com defines negotiation as a strategic discussion with another person. When you are out shopping, that person is the store personnel or even the owner of the business. The negotiation process involves haggling and trying to convince the other party to believe or agree on your point of view.
You can actually say that knowing how to negotiate is an important skill in frugality. Here are some important reasons why this is so.
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Helps you to counter the effects of consumerism. This type of socio-economic order prompts us all to buy excessively. That is in direct contrast to the principles of frugality where you should buy only what you need.
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Encourages you to think before you buy. Since we cannot eliminate buying, the only option to practice frugality is to think before you make a purchase. Negotiating will encourage this practice.
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Prompts you to know your finances. You cannot negotiate if you do not know your own finances. You have understand your financial capabilities to be confident during the haggling process. Frugality is all about knowing your money so you can manage it well. Negotiating will help you practice this.
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Gives you savings. When you negotiate, your aim is to get savings out of a purchase. If you succeed in negotiating for a lower price, you can get some savings from your budget. That amount can be added to your savings account – which is an important goal in frugality.
The art of negotiation is not a difficult concept to grasp. You simply have to know how much you are allowed to spend on a purchase and you stick with that. There are characteristics like patience, perseverance, determination and firm resolve that will help you be successful at negotiating. But beyond that, here are some important truths about negotiation that you need to know.
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You can negotiate everything. If it is not in the price, negotiate for freebies.
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You can always find something that benefits both parties. No matter what you are negotiating for, you should always consider what is fair to the other party too. When you are sincere, it makes them more amenable to accept your offer.
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You should always be prepared to not get what you want. Don’t let failed negotiations crush you. It happens and you must be firm about it if you really cannot afford a purchase.
Tips when negotiating with the retailer
If you really want to know how to be frugal, you have to learn how to negotiate. This is a trait that will help you get the best deals out of every expense that you make. If not for the savings, you will get the quality that you deserve – both for products or services that you avail.
When you go out to begin your holiday shopping, it is best for you to be ready to negotiate. As mentioned, it is not always a guarantee that you will get the result that you want. But there are techniques that will help you increase the chances for a good deal.
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Do not focus too much on a low price. While the ultimate goal is to save money, you do not want to appear cheap with your haggling. Be smart about this by keeping your end goal in mind and not being too greedy about it.
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Be polite always. Remember, you are lowering the profit of the retailer so try to be polite about it. They are after your sale, that’s true, but you do not have to be too bossy or demanding about it. Be polite when negotiating so that you can get a better reaction out of the merchant.
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Try to haggle quietly. The retailer may not be willing to announce to everyone in the store that you are getting a low price so keep the discussion between you two.
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Know the competitor prices. One of the best arsenals when negotiating is knowing the product price across different brands. That will give you a solid ground to begin your negotiations.
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Inquire about future discounts. Some sale and promotional discounts happen on scheduled dates and it doesn’t hurt to ask about them. That way, you can postpone purchases to get additional discount.
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Look for product damages that you can live with and use that to haggle for a lower price. Some defects or dirty merchandise will still function properly and you may want to get them instead of the perfect ones. That way, you can use the defect to get a low price for it.
By following these tips, you can get good deals in your holiday shopping. You don’t really have to worry about being in debt because knowing how to negotiate will make you think about every purchase you make.