A number of factors will determine how much you will pay for a product. These factors might sometimes be obvious and at other times very subtle. It is upto you to decide on an good negotiation strategy to seal the deal in your favor.
One of the most difficult products you purchases are financial services products – you don’t know the true cost until you are forced to pay. So how do you mitigate the risk. There are a number of ways to do this. Just go for small, fixed interest loans with the option to prepay. Always read the fine print. Understand what you are signing for in the loan agreement.
How do I negotiate the lowest price? Leverage is the most potent tool in any negotiation – pit sellers against each other and discover their product weaknesses competition will always favor the buyer. Always indicate that you are open for any new offers and have not made up your mind. Use your leverage to win product features that will be beneficial to you – sellers will always try to sell you factors that cost less and therefore less important. So always look for the major upgrade.
How do I get best bargains and discounts? Ask for the lowest prices – don’t be shy to go really low. Sellers expect buyers to bargain and ready with counter offers. Purchase during the “off season” when prices are slashed. Every business has a “happy hour” try and figure out where and when it is and then pounce! The now famous comparison shopping is getting better with more and more aggregators offering to find you the best deals. Be warned that you can now get “unlisted prices” by calling hotels directly and making bookings which is cheaper than those offered on websites. Businesses now all have their own versions of “unlisted prices” try and figure out how to get those prices and save a bundle.
How do I budget for purchases? Always have a clear idea of the maximum you will pay for a product – going over budget can lead to serious disasters in some cases. At the outset indicate to the seller that you are on a tight budget this will help to keep the haggling to a minimum and you will be shown only those products that you can afford leading to a better purchase decision.
Is it safe to make big purchases online? It all depends from which website your making the purchase from. All large reputed online stores do also have insurance against most types of fraud so check out the terms and conditions or terms of service before making any big purchases.
Should I purchase through easy payment scheme? Buy now pay later – has been used as a key selling point for a number of reasons. People who usually will not purchase a high price product are tempted to accept as it is on an “easy payment”. It is a means of quickly moving otherwise slow moving items such as consumer electronics and frees warehouse space and these items do have parts that rust faster if not used within a reasonable period of time.
Should I make bulk purchases to get quantity discount? It depends on how much you are prepared to invest in inventory. Is the discount large enough to recover the cost of funds invested in additional inventory. Opportunity cost of funds are there more profitable ways of investing the cash used to make bulk purchases. Do you have adequate suitable space to store the product. Also you need to be aware of the expiry dates of the product if it is a perishable item. If you plan to resell the product then ensure first that you have a market before making the purchase
Should I use a lot of credit or credit cards? The danger in using a lot of credit is that the interest or finance cost could become excessive. As a rule of thumb any groceries or monthly repeat expenditure could be financed through credit cards as your salary should be more than adequate to cover these expenses. However large investments in automobiles, consumer electronics or kitchen appliances should be financed through savings or personal loans.
How do I keep track of my purchases? Many people use monthly credit card statements to keep track of monthly expenditure to ensure that they don’t overspend on necessities. Keep close tab on bills and manuals (preferable file them all in chronological order) of larger items as you will need them for warranty claims. There are now many apps available on Android Marketplace and Appstore to keep track of expenses with numerous additional features you can select a suitable App.