The Art of Haggling

[image error]Asking for a discount – whether you're buying a car or a pair of shoes – should be common practice by now. If there's anything we learned over the past few years in this difficult economy, is that everything is negotiable. I stopped by the Today Show this morning with some tips on the art of haggling. In case you missed it, here's an overview:

Don't be shy…at all

The worst you're going to hear is "Sorry, we can't give you a discount." But I think to be successful in any situation you need to be nice. Kindness goes a long way. Try to make a connection with the sales person and ask him or her questions, all before asking for a discount. And remember, you want to ask for the salesperson's help as opposed to demanding a discount. You want to  make him or her feel empowered in their position so that they'll want to help you. And if they can't you could always run it by a manager who may have more authority. Persistence pays.

One script that's been proven successful is to ask: "Does your store ever offer a discount on this particular item?" as opposed to "Can I get 20% off?" or "Do you ever make exceptions for some customers?"  It's harder that way for them to say no.

Here are 5 more clever strategies to earn a discount:

Flash the cash  

We know, for example, that when financing a home or car, the more you can put down in cash, the better your loan terms will be. And using cash – versus credit – can also come in handy when shopping at some retailers.  The reason is merchants have to pay what's known as the interchange fee or swipe fee to banks every time a customer uses plastic.  In order avoid that fee, some, especially the smaller mom and pop stores, prefer customers who opt to pay in cash and may offer you a discount for doing so. My favorite Thai restaurant on the Upper West Side gives me 10% off for using cash. My shoe repair guy gives me a 10% discount.

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Buy in bulk

Beyond Costco and Sam's Club, buying in bulk can earn you a discount elsewhere. This is also known as a volume discount. Buying multiples of something can sometimes earn you a discount because the store would be willing to cut you a deal for moving more inventory out of the store. Say, what if I bought two or three? If you're buying multiples of an item – especially if it's pricey – ask if you can get a deal. Maybe you can negotiate a buy-three-get-one-free deal or a 20% discount. I've done this with video games at a video game store around the holidays. You could also try this at wine shops or shoe stores. If you have a big family and you're going to buy sneakers for all your kids at once, definitely ask for some kind of discount.

Point out imperfections

Floor samples of furniture that have dings or any clothes and accessories that are on display that are imperfect are the kinds of items you may be able to haggle over. If there's a loose string on a dress, bring that to the attention of even just the sales person at checkout. He or she has the authority to often give you a discount – at least 10%. A couple of months ago at Best Buy, my fiancé got a $5 discount on a cell phone case where the packaging was slightly torn. The case itself was in perfect condition. He just showed it to them at checkout and no questions saved money on the spot.

Cite the competition

More stores are offering to at least match a competitor's price from Wal-mart to Target to Nordstrom's. And by using a handy app like Shop Savvy or Redlaser you can just scan barcodes with your smart phones while you're shopping and  find out what the local competing stores are offering for that same product. If you find it cheaper elsewhere sometimes you can just use that as evidence to get you a discount equal to at least the competitor's price. A personal example: I knew that Bloomingdale's was offering a 25% discount on handbags one weekend but I happened to be at a Nordstrom's. I brought this to the attention of a salesperson on the floor and she said they'd honor that discount as well. But there was no advertisement for this. I had to ask.

Dig the display 

Most floor samples – be it furniture, luggage — end up in the "As Is" sale section. After a while they can get slightly discolored or worn out from customers trying them out. Markdowns in those sections can be as high as 50%.  But I would suggest – if there's anything anywhere in the store that's perhaps the last of its inventory that's on display, offer to take it off the store's hands for a discount. Restoration Hardware once offered me a 20% discount on a floor sample leather couch and I was also offered 10% off a nice piece of luggage.

Photo courtesy: Mr. T in DC's photostream on Flickr