Haggling Hacks: How to Negotiate and Save on Everyday Expenses

For some, haggling seems like an activity reserved for a bazaar in some far-flung corner of the world. But for those in the know, negotiating for the best deal is one of the most effective ways to save money on purchases of all kinds.

Haggling doesn’t come naturally to many, mainly because they don’t know what they should haggle for or how to go about it. But in this article I’ll take you through some common purchases and expenditures you can haggle on, why they’re great targets for negotiation, and provide some tips for talking your way into significant savings.

Common things to haggle over

While you can’t haggle over every expense (your tax bill is non-negotiable, sadly), there are still plenty of things you can save money on with a little negotiation. Purchasing a car is one of the few well-known opportunities for haggling, but here are some other top things you can talk your way to a discount on.

Utilities and insurance

From power to insurance and mobile plans, utility bills can be a great opportunity to get a better deal through haggling.

Utilities and insurance companies usually save their best deals for new customers, whether it’s a bonus credit, a discounted rate for a set period, or some kind of welcome gift. If you’ve been a loyal customer for years, these promo deals are out of your reach. Unfair, right? This is where haggling saves you from missing out.

Utilities and insurance companies are always working hard to attract new customers, but they’ll also fight to keep valuable existing customers by offering discounts or goodies if they think they might leave.

If you make your move at the right time (usually as your existing contract is about to come to an end) and come into the conversation armed with a little information on what other offers are out there, there’s an excellent chance you’ll come away with a cut-price deal.

Rent

Moving into a new rental property can be expensive, from moving furniture to covering the cost of a bond to possibly even paying twice for overlapping rental agreements. But landlords face a similar problem: Finding new tenants can also be costly and time-consuming.

If you’ve proven yourself to be a good tenant (paying your rent on time each month, managing not to burn the place down, etc.), your landlord won’t want to lose you. This puts you in a great position to push back against proposed rent increases, request property improvements, or even negotiate a temporary rent reduction.

High-street purchases

While it wouldn’t occur to many, high-street haggling can result in major savings, especially on electronic goods and whiteware.

Stores can provide discounts on products at their discretion, and they often do so for lots of reasons. Whether it’s to beat a competitor’s deal, as an incentive for you to purchase multiple items, or even just to clear shelf space for new products, you might be surprised how flexible a retailer can be with its ticket prices.

Top tips for haggling your way to a discount

So now you know what you can haggle on, how do you actually do it?

You don’t have to be a master in the art of negotiation or a tenacious pitbull who just won’t take ‘no’ for an answer. With these simple tips, you can secure a discount by thinking ahead and asking in the right way.

Do a little research

Haggling isn’t just about charming people with your undeniable charisma and winning smile — it does help to do a little homework first.

Got your eye on a particular TV? Go online to find out who offers the lowest price and use that information to get an even better deal. Lots of stores and service providers have a policy of matching or even beating competitor prices and they will be eager to deal with someone who’s proven to be a motivated buyer.

Choose the right time

For services that involve a contract (such as mobile plans or insurance), you’re in a much stronger position to negotiate when that contract period is reaching its end.

For example, you don’t have much leverage just six months into a one-year contract because you don’t have the option to go elsewhere at that moment. But if you call to discuss a better deal in the final few weeks, the provider knows there is a very real risk of you jumping ship, and they’ll use whatever tools they have available to keep you as a customer.

Have the right attitude

‘Confident but friendly’ beats ‘aggressive and forceful’ when it comes to haggling. You want the person you’re dealing with to like you and coming across as pushy or rude isn’t the way to achieve that.

In many cases, whether you get a discount and how much it is is at the discretion of the person you’re dealing with, and we’re all more inclined to help out people we like. You catch more flies with honey than vinegar, right?

Have them throw in something for free

If you’re just feeling your way into the world of haggling and aren’t yet comfortable negotiating discounts, try asking for a little extra to be thrown in to sweeten the deal instead.

If you’re buying a new TV, get them to chuck in a HDMI cable or an extra remote. If you’re looking at a new washing machine, ask for a free extended warranty and/or free delivery.

Typically the bigger the purchase, the more you can get added on. You might be surprised about the extra value you can squeeze out of a retailer just by asking for a little extra.

Target already discounted or damaged products

On-sale items, or those that are often on sale at a reduced price, are prime targets for haggling and even greater savings. A discount shows that the retailer is keen to move a product on, possibly because demand isn’t as strong as expected or to make way for new stock. Either way, it’s an indicator that there is pricing flexibility you can take advantage of.

Damaged or ex-display items are also great targets for hagglers. Stores know that even the smallest scratch, stain, or dent can be a major turn-off for customers, and you’ll find they’re often more than willing to bend on price for those who are willing to accept an imperfection.

Kevin McHugh is the Founder and Head of Publishing at New Zealand personal finance website Banked. He believes in making money topics simple and accessible to everyone and in providing all the information people need to make the most informed decision.