MONEY COMMENT
Never Pay The Price You See!

By Cliff D'Arcy
October 2, 2003

I'm reading a brilliant book at the moment: Dilbert and the Way of the Weasel, by best-selling author Scott Adams. In my humble opinion, this cartoonist makes more sense than every financial commentator around.

My wife bought this book for me yesterday, which was a dangerous thing to do. That's because I love books and buy several dozen every year, but I insist on shopping around like mad for them. However, she did me proud, getting a newly released book for £5 (RRP: £8) at bargain bookshop chain Sussex Stationers.

The thing is, I get a big kick out of paying less than the marked price for goods, and securing discounts and the best possible price on other services. When I see a price tag on an item, I see it as the maximum price I should pay, and then only if I'm desperate! My goal is to save at least 10% on every significant purchase, the more the better.

Fancying myself as something of a mean negotiator, I was relating some of my best bargaining stories at a recent workshop on financial fitness. However, I was upstaged by one of the delegates, who explained that her father managed to buy her a new car for £5,000, instead of the full list price of £8,000. That's a great result by anyone's standards, which he achieved by playing off four dealers against each other. However, he had a genetic advantage over most hagglers, in that he was a Yorkshireman!

Anyway, here are a few tips on beating salespeople and winning discounts every time:

1. Remember that, no matter how charming the salesperson is, s/he is not your best friend and is only after your hard-earned dough. Pretending that s/he's an unscrupulous weasel may help to sharpen your bargaining skills!
2. Be very wary of telling the salesperson your maximum budget because, as sure as eggs is eggs, you'll end up paying this - and often even more.
3. Don't be fooled by the attractive quote that inexplicably becomes more expensive at the time of buying. Whenever possible, get your quote in writing, especially when booking hotel rooms.
4. Make sure that all the extras that are 'included in the price' actually materialise. Also, salespeople often fail to mention the extra costs, such as taxes, insurance, installation, delivery, and so on.
5. Don't listen when the salesperson tells you that s/he's 'losing money on this deal' - no-one sells products at prices below their own costs, unless they're dumping them because they're about to be scrapped!
6. For big purchases, read some product research in consumer magazines and websites. Alternatively, take a knowledgeable friend with you - when we buy my wife's next car, you can bet that we'll be taking my friend who's a car dealer with us.
7. Don't be fooled by jargon: if you don't understand what you're being told, ask for another explanation. Buying something you don't understand is like gambling blindfold.
8. Avoid buying over-priced warranties, which can increase the cost of household appliances by up to half. Read more here.
9. Be stubborn but patient. All products have juicy profit margins built in, so you're simply having a tug-of-war with the salesman as to how low s/he will go.
10. You'd be amazed how much you can save from this simple question, "What's the lowest price you'd accept for this [widget] today?"
11. Offer to pay in cash on the spot. The sight of your money often hypnotises salespeople into knocking down the price.
12. Don't secure a good deal on your purchase and then get suckered into taking out costly credit.
13. Always, always, always shop around. If you can't be bothered to shop around yourself, these ten wonderful websites could save you money.

More: Save A Fortune By Haggling | The Perils of Using Store Credit | Fantastic Financial Discounts Online!