When you ask someone what they think of a negotiation is they would often think of a corporate boardroom with two businesses negotiating a high-profile deal. This is not always the case, negotiations can happen every day and you can always get more for your money. Here are 10 cases when you should negotiate in everyday life.
Salary Negotiations
The success of salary negotiations can be the difference between getting a new job and not. When in this negotiation stage always be respectful remembering that if you accept the job you will be working alongside the people you negotiate with. Salary negotiations are one of the most important negotiations you will experience and can have a huge effect on your career and life. Websites such as The Negotiation Society offer negotiation tips and skills in the form of webinars, negotiation video examples and articles to help you improve your negotiation skills to ensure your next salary negotiation is a success.
High Street Shopping
This is always easier in independent stores when you can talk to someone in a position of responsibility more readily. Look for defects or reasons which you are not willing to pay the full price i.e. wrong colour – given the margins and fast-paced nature of industries such as electronics or fashion you may be able to get discounts on the RRP.
Often workers are given certain discounts or benefits they are allowed to give if customers ask. If you befriend the salesperson, they will be more inclined to give you the maximum allowance. Depending on their compensation structure it can benefit them to sell you the product if they give you a discount. Say their bonus is based on the number of good reviews they get. If you offer them a good review in return for a discount, then it is a win-win situation.
Purchasing a house
A house is the biggest purchase you will make in your life. Even a 5% reduction in price could save you thousands of pounds. There are a large number of factors that come into the price of a house. Often agents will inflate asking prices with the knowledge that the price will be negotiated. As they work on a commission basis, it is in the interest of the estate agent to sell the house quickly even if this means a discount. Other factors include the onward chain of the purchase if you are paying in cash, how long the house has been on the market for and how quickly the sellers need to move. All of these factors come together to mean you can often negotiate and save thousands.
Quantity
Whether ou are an individual or business, if you are looking to buy in bulk, discounts will often be available. Often with low-value products, the cost of processing the order is included and hence if you order a larger quantity this will be split between each additional item and dramatically reduce the price. When ordering a large quantity online, particularly from independent retailers, either call or email and request a quote or open a discussion regarding the best deal they can offer. The same can be said if you intend on forming an ongoing relationship with a brand. If you intend on ordering multiple items per month, they may give you a discount for your loyalty.
Generic Goods in Competitive Markets
In industries with high competition such as cosmetic surgery or web development, you can often negotiate for a lower price. As markets operate on a supply and demand basis, if a company know you can easily go elsewhere to purchase the item or service, they will be more likely to offer you a better price or a better service for the same price to secure your business.
Paying in cash
Particularly with larger purchases i.e. houses, the offer of paying in cash can be enticing. Cash payments take away some of the risk and uncertainty for the seller and will help with their cash flow. This can often be enough for them to offer significant discounts due to the convenience.
Loyalty
With phone contracts or TV contracts, there is often space for price negotiation. If you have been a customer with a company for a number of years, they will often offer a significant discount If you give them the threat of leaving. Similarly, before joining a new provider if you contact them and confirm you a looking for a new provider, they may offer a discount – particularly if you sign an extended contract.
Ultimately, if you don’t ask, you don’t get. But be careful, if you are in a shop the worst outcome of a failed negotiation could be that you have to pay full price for the item but in a salary negotiation, it could mean you don’t get the job. Always consider the motives and wants for each party and ensure you tailor your negotiation to suit these to ensure the best outcome for all parties.