If you’re running short of money, maybe it’s because you’re not asking enough questions, especially when it comes to asking for a discount when you buy something. It’s amazing what results you can get simply by asking. Here are several real examples.
Three questions in a gift shop
While waiting for some friends, we were browsing in a gift shop. I’d been looking for an anniversary gift for my daughter, Janet, and son-in-law, Tommy. Joanne spotted the ideal item: a bird cage shaped like a hot air balloon, hanging from the ceiling. Janet and Tommy own a restaurant-tavern called Knickerbockers, and their logo is a hot air balloon. It was the perfect gift.
When I asked the price, the clerk said, “$107.” I used the “shock” technique and asked, “How much?” She repeated the price, and I said, “Wow, that’s a lot of money. You can do better than that, can’t you?”
She hesitated a moment and said, “Yes, I can give you a 15 percent discount.” I mumbled, “15 percent? How much would that be? What would that make the price?” She looked at the ceiling for several seconds and said, “I’ll let you have it for $89. That’s better than 15 percent.” I hesitated, mumbled the price a few times and said, “Hmmm, that’s still a lot of money, but I’ll take it.”
Then I asked if she accepted Mastercard and Visa. She did. Just as I was about to hand her the card, I asked, “How much discount will you give me if I pay cash?” She looked at the ceiling again and said, “If you pay cash, I’ll let you have it for an even $80.”
Now it was my turn to be shocked. I hadn’t expected $9 off just for paying cash; I usually get no more than three to five percent when I ask that. (She didn’t know it, but I’d have bought it with no discount at all.)
About two minutes of questions and comments saved, or “made,” me $27. For a minimum-wage worker, that’s several hours’ pay. Talk about yield.
One question, one discount
Last week I was buying five books as gifts (four were Rich Dad, Poor Dad). When I put them on the counter, I said, “Now, you do give a discount for this many books, don’t you?” The clerk smiled and said, “No, I’m sorry, we don’t.”
I frowned, looked very disappointed and said, “No discount?” When he quoted the total, he said, “Well, I went ahead and gave you a 10 percent discount.” That was $15.46 that stayed in my pocket instead of going into the cash drawer, from one simple question. And it was fun, too.
Another time, negotiating to buy a mobile home, I asked, “If I can get you the money today, what is the absolute best cash price you’ll sell for?” The seller dropped the price $2,000. One question, $2,000. How’s that for efficient use of your time?
Let the other side name the number
Asking questions works when you sell, too. I was selling a mobile home, and the buyer asked, “How much is the down payment?”
I gave my standard answer: “We don’t have a set amount. It’s negotiable. If it’s reasonable, I’ll try to work with you. How much of a down payment can you make?” He said, “$8,500.” I’d have been happy with $1,000. (Learn to keep a good poker face when that happens.)
Another time I asked a buyer how much they could pay each month. The answer was “$400.” I’d have been happy with $200. Suppose I had already said I wanted $200. What are the chances they’d have said, “No, we want to pay $400”?
Stacking discounts on a bigger purchase
Several years ago we were shopping for three oil paintings as Christmas presents. After negotiating the best price I could on one, I asked, “Suppose we bought two pictures. How much discount will you give us?”
Once the price for two was settled, I asked (you guessed it), “If we could afford three pictures, what kind of special price could you give us?” When that price was set, I asked, “How much discount will you give if I pay cash instead of putting it on a charge card?” We walked out with three pictures for the price of two.
It was much easier to ask a few questions and get a big discount than to pay full price. Yet many people never learn to ask, and don’t even realize they can buy for much less.
Make asking for a discount a habit
If you haven’t been asking for discounts or negotiating on what you buy, start with your next purchase. Don’t be shy. The worst that can happen is you don’t get a discount, but often you will.
Get some good negotiating material and study it, learn it and use it. There are many good books and courses on negotiating. One author I recommend is Roger Dawson, one of the most skilled negotiators in the country.
Ask for a discount whenever you buy anything, and negotiate with the person who has the authority to grant it. If the employee in front of you doesn’t have that authority, ask for the manager or the person in charge. It doesn’t always work, but then, what does? Happy negotiating.
