US Financial Management, Inc.

This is what I learned from Mr. B:

* Never be satisfied with the marked price. You are looking for a deal. Any deal leaves money in your pocket. A decent haggler can increase his purchasing power by 10-20%. That is like getting a 15-25% raise in your pay.   

* Always bargain up. Choose a low price to begin with. You do not start at the price you are willing to pay. If you do, once you mention a price you are done. Start with a low, even ridiculous, amount. (This can be the most difficult part, but forget the embarrassment. Your goal and only goal is to get them engaged.)   

* As you haggle make your increases in price small. You never know when he or she will accept. There is no sense in placing money on the table you could have left in your pocket.
   

* Never give up. Keep at it. Be sure to go into the negotiation fresh. Don’t fool yourself by thinking you are the first person to match wits with this seller and so he has no experience. You must not even give a hint you are weakening. A good seller can smell reticence.
   

* Dress the part. There are clothes to wear to work, to wear to church, and then there are clothes to wear when you shop. You want to be comfortable and you do not want to appear to have money. You can be far more effective if you look like the price you offer is truly all you can afford.
   

* Never downplay the quality or desirability of the item you want. If the item is no good why do you want it? You need to downplay the price of the item. You want the item, just not at the price they are asking. It can be a good idea to mention you have seen it elsewhere for less. However, this can backfire if the item is truly one of a kind. Be careful, only a totally uninformed seller will not be aware of the scarcity of his item.
   

* Make the haggling a two way negotiation only. You don’t want to enter a bidding war with a third individual. This can only cause the final price to be higher.
   

* Since you had a price in mind before you began, you should never pay more for an item than the price you have set for yourself. You must be prepared to walk away if the negotiation cannot get you the price you want. Almost nothing is more effective than walking away from a protracted negotiation in which the seller has so much time invested. You will be surprised how often you will be called back for another round of haggling.

Now go make Mr. B proud. Get to work saving yourself some money and use it to pay down your debt.