Tuesday’s Negotiating Tip:

I can’t stress enough the importance of a positive outlook when negotiating. Several times I’ve heard “really, I don’t think they will go for that” or “there’s no way they will drop the price that much.” The fact of the matter is that you never really know. That’s why I approach each negotiation with a positive outlook and reinforce this by remembering the times I’ve gotten a great deal even though I thought it would never happen.

My brother is skewed a bit to the negative side. He called me in to help him negotiate the purchase of a house. This was a few years ago when housing was at a premium in Atlanta and often you paid more than the asking price for certain homes. When the first attempt at a house fell through, he was quite discouraged. I told him to hang in there and we’d try again.

He found another home that he liked and he told me right away that there is no way the builder would come down on the price. How did he know that? He didn’t. He just pushed his emotions onto the deal and all the negativity went into his perception of the negotiation. After a short chat or two with the real estate agent I found out some wonderful things. First, the builder had passed away and his son had taken over the business. This house was the first one that he the son had built. My brother is an engineer and he and I confirmed the fact because the house was not only well built but was in fact over-built. The young builder had not sold a home on his own and it was December, so I picked up that it was urgent for him to move this property so that he didn’t incur taxes and more payments.

With only a short period of actual negotiation I submitted a take-it-or-leave it offer and was able to get the house for him for $32,000 below the asking price. This was because I approached the negotiation with a positive outlook for success and an open mind to new information. I’m positive that you can do this to save money!

Monday’s Negotiating Tip:

We’re all concerned about the environment. What about your negotiating environment? When you negotiate the environment can strongly affect the outcome. Here in the South if you are buying a car the first thing the dealer tries to do after you look at a car sitting on the 100+ degree parking lot is to get you back into the air conditioned dealership. Often they will get you a cool bottle of spring water to whet your whistle. This consideration of your primary comfort needs is admirable, and it is carefully orchestrated.

The less you look at the car, the fewer questions you’ll ask and the fewer objections to buying they will encounter. If you want to test drive the car, they’ll even send a lot jockey out to cool the car down and then bring it to the dealer’s front door to keep you comfortable. All of this makes it easier for you to say “yes.”

Well, I like the heat. About a year ago I went looking for a pickup truck in July. The temperature was hovering around 98 degrees and it had not rained for days. The cars were covered in a light dust from the hot wind blowing. Advantage, me! I kept the poor salesperson outside for an hour as we discussed every single item on the shiny red truck. With every ounce of sweat the price dropped and extras were added on.

Negotiate in your preferred environment, not theirs. The added advantage will save you money!

Sunday's Negotiating Tip:

Bad guys always wear plaid. Well, maybe not. But one thing to always avoid is someone who is not an experienced salesperson or negotiator. Many people I’ve talked to over the years have said that they wanted to avoid experienced sales pros, fearing that they will be “taken” or spend too much money. I’ve not found this to be the case. In fact, I’ve found just the opposite is true.

A good salesperson understands that a one time sale that leaves the buyer unsatisfied will not turn into a repeat sale later on. Car dealers rely heavily on repeat customers. Experienced sales people are more likely to know ways to work around special problems and provide creative solutions to help satisfy your needs. Also, the top producing sales pros can pick up on your buying signals and will approach the sale in a manner that best caters to your needs and your style of negotiating.

Seek out good sales professionals. Don’t just accept the first person that comes up to you in a store or a car lot. Ask them how long they’ve been in sales and how long they’ve been at the store. If it is not more than a year, ask for a more experienced person or their manager. You’ll find your buying experience to be more pleasant!

New Year's Resolution

Welcome to Rainy Day Finances, sponsored by Rainy Day Financial Group. I'm Marie Perry and I'll be your host as we help you and your family save money every day! My husband Scott and I have saved over $25,000 and reduced our debt by $38,000 in just the past year and a half. Over this time we've found new ways to cut costs and manage our budget better.

Since then we've committed ourselves to helping others that are victims of credit cards or the bad economy. Scott and I teach Dave Ramsey's Financial Peace University and provide counseling help to those in financial need.

Professionally I'm a tax preparer here in Georgia and have worked in the legal field for many years. Scott works for a large consumer products group and is a negotiator and cost cutter. We both teach classes on budgeting, coupon savings and negotiating for consumers. Together we are committed to helping YOU SAVE MONEY in 2009! Tht's our New Year's Resolution.

Today's Negotiating Tip:

It's a buyer's market out there so take advantage of it if you are able to. This means don't buy it on credit, but if you have cash and have planned (key word) the purchase, you can probably negotiate a great deal. Carry cash with you when you go and ask for the best deal possible. Remember to use the magic phrase "is that the best deal you can offer me?" and remain quiet for a period of time with the salesperson thinks about it. Everything is negotiable! Don't be afraid to walk away!

Look for more consumer negotiating tips as we blog away!