As consumers we have the advantage because it’s easier to buy than sell. The world of negotiating encompasses ceiling and floor pricing. The seller will always put items higher for the consumer to feel at the end they obtained an amazing deal. Us the consumers will offer a lower price than the ticket just enough to start the negotiation game. I highly recommend people brush- up on this art especially with higher ticket items like homes, cars, recreational vehicles, jewelry, or anything of that expensive measure. Negotiating at department stores is like beating a dead horse trying to get them to reduce pricing. However, almost everything else is fair game for me anyways.
The key as consumers in saving big is knowledge of the item you want prior, and looking at few other store’s pricing for the same thing. Having all this in your back pocket avoids the sales rep from being able to outwit you with product and pricing facts. I believe that an average store’s product a 30% profit margin built-in or more on items. If a sticker price is $10,000 there should be at least $3000 to negotiate with. Knowing this my offer is always between 5%-10% and I’ll settle at 15% to 20%. If I can’t get the exact low price I want, time to hammer them on free options. If a sales person won’t play then I’m prepared to walk away from deal! it’s all about me and my money, saving as much as possible not concerned with their business woes.
We live in an add-on world where buying something isn’t enough anymore, the salespeople will try to convince us to purchase something else. This where your salesperson can obtain more commission and profit for the company. So, you negotiated a fantastic price on the lower side of profit margin, this is an opportunity for the company to increase margins. It could be wonderful warranties, be sure if you choose to look at the conditions. Next if financing, they will try selling on fear saying it’s only anther $10/month for example. Not bad but keep in mind that could be a financing term of 10 years plus interest.
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