Thinking Money | Free Financial Advice and Tips

10 Ways To Improve Your Bartering Skills

Posted on 20. Mar, 2009 in Saving money

British people have always been seen by foreigners as polite and a little reserved. Haggling is seen as being impolite and tends to make the Brits feel uncomfortable; so they rather just pay the full price for goods instead of negotiating.

Bartering doesn’t have to be difficult, nor do you have to be rude to be a good negotiator. Here are some great tips to help you develop your negotiation skills to get the best deals possible.

1) Be knowledgeable about the product’s true value

The first step in successfully negotiating the best deals is to know what the product or service is actually worth. Before beginning negotiations shop around and see what similar products are going for. Once you have established the average cost, you can then determine how much you should pay for the item without overspending or undercutting the vendor’s price. This approach can be applied to business spending, from smaller everyday purchases such as inkjet cartridges, through to larger commitments such as holidays and cars.

2) Deal with the right people

Part of your preparation for securing a good deal should be to establish who to negotiate with. There is no point in entering negotiations with someone who is not authorised to sign off on any deals, as you could end up wasting time bartering and agreeing the best deal only to learn at the last minute that the authoriser won’t agree to the deal. Approaching the right person from the start means that the negotiation process can run smoothly as all the key players are involved.

3) Be fair

This is especially true of situations where you would like to build up an ongoing relationship with the vendor. If you undercut the vendor’s price by too much, there is a great risk that they might not want to deal with you in the future. Remember that negotiations are supposed to bring about the best deal for both the purchaser and for the vendor – that way both parties walk away happy. There is also a good chance that if you ever need to do business with them again, another great deal can be struck.

4) Clearly define your needs

When you are shopping around for a service make sure that you clearly state the details of the expected service before you begin negotiations. This will ensure that the bidder will propose the appropriate cost for the job. It will limit the risk of any potential disputes where the provider feels that the actual job is worth more in terms of effort and cost than the original specification had described, or where the delivered service does not meet your expectations.

5) Keep the communication channels open

When you start to engage in negotiations, ensure that you are always polite and friendly. Once you start the negotiation process make sure to stay in contact with the provider or buyer, without being too pushy. Often negotiations will fail simply because the parties involved stop communicating. The assumption is that you have either lost interest or found a better deal elsewhere; however this is not always the case. Don’t lose a potentially good deal due to a misunderstanding or erroneous assumption.

6) Don’t be afraid to ask for discounts

Traders generally don’t advertise the fact that they are open to negotiation, but many will be prepared to offer you a deal if you ask for one. Most companies will more than likely be willing to entertain the idea, especially if you intend buying in bulk or if you intend becoming a regular customer. You will also find sole traders or small businesses are the most flexible in terms of offering discounts as they do not need to adhere to large corporate pricing guidelines.

7) Be prepared to lose

A lot of novice hagglers end up paying more than they intended for a product or service as they get carried away with the negotiation process, or feel that they simply must have that item. Before you enter negotiation determine your limit and then stick to it. If you can’t get the deal you want, politely decline the bid and move on. After all there are plenty of other suppliers who are willing to negotiate a deal more to your liking.

8 ) Don’t get emotionally involved

Some negotiations can turn nasty when people forget that bartering is just about business and is not personal. Becoming rude; aggressive or demanding is counter productive and a sure way to lose the deal altogether. Rather stay calm and politely decline any bid you find below par, this way you don’t build up a reputation as sore loser and you may even have the opportunity to return to the negotiation table with the other party at a later date.

9) Be a cool customer

Another rookie mistake is to appear too eager when engaging in negotiations. If the buyer or seller senses from the onset that you really want the product, or service, then you will have very little room to negotiate a good deal. Even if you are desperate for the product, act nonchalant. This could turn the table in your favour and you could end up negotiating a really good deal if the other party thinks that you could walk away if you feel the price isn’t right.

10) Get it in writing

After you have agreed on a price, make sure that the deal details and the agreed terms and conditions are recorded in writing and signed by both sides. Should any disputes arise thereafter you will be covered by the written agreement. If you only had a verbal agreement you will have nothing to back up your claims or any evidence to contest their complaints. A written agreement will protect both parties from any potential disputes.