If you’ve realized that you need to save more for retirement, congratulations on the decision to make your future a priority! But of course, saving money is always easier said than done. There are some budgetary items that are necessities for most of us, and some of them can be quite expensive. One thing way to get your budget under control is to learn how to negotiate prices. As a bonus, learning these skills now can potentially help you live more comfortably on your retirement income when that time arrives.
Coupon clipping and sales hunting only goes so far. You can save a few dollars here and there, but often not on the items that you truly need. That’s where the art of negotiation comes into play. Think back to your last major (or even not so major) purchase. Did you try to negotiate at all?
According to Consumer Reports (August 2013), only 48 percent of shoppers attempted to negotiate prices in the past three years. A little over half of you are paying full price for everything you buy, without even attempting to score a better deal. If you think it can’t work for you, consider this fact: Of those shoppers who report negotiating prices, 89 percent say that they have been successful at least once! Aside from items like cars and furniture, you can also negotiate lower credit card and bank fees, better interest rates, or even lower medical bills.
Form a relationship with salespeople. You might gain inside information on mark-downs and upcoming sale events.
Be upfront. Tell salespeople that you are comparison shopping, and mention other retailers. Now they know you want what they’re selling, but they have to convince you to buy it from them.
Research. Before you even go shopping, research the item you want. Learn competitor prices so that you know where the best deals are. If the store with the lowest price is 50 miles away, it might not be worth your gas and time to drive there. But the sales person at your closest store might respond favorably when you arrive armed with this information. After all, they don’t want to lose you to the competitor.
Now that you’ve learned some handy methods to negotiate, you might find yourself saving money on many of your purchases. As you free up a bit more room in your budget, remember to make retirement savings a priority. For more information on saving for the future, give us a call and we will be happy to answer your questions.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.