How much can you negotiate? (funds, pay, taxes, financing)

[Oildog]

I was wondering how often do people pay the sticker price for items, and if you get discounts for cash transactions.

In the past when I've had work done at my house, the contractor gives me a price and I ask if he will take 10-20% lower if I pay cash. This is often accepted. This has not worked when I tried to buy a car (in early 2008) as I think they make their money in the financing.

How have you done for work at the house, stereo equipment, big screen tvs, furniture?

[Oildog]

Crickets...

[crash330]

When we paid cash for our new used car in May, the dealership knocked $1,000 off when I paid cash.

[Huckleberry3911948]

works with some not others. all time worst are car dealerships which is why i buy used always from my trusted long time mechanic. builders are tough. i have paid too much. will use a trusted handyman or a property manager referral before a builder. think referrals from those you trust.
have saved big time in most areas. when they stiff arm walk out. use the internet.
a giant red flag is when someone thinks they are doing you a favor by taking your money.

[chet everett]

I wish I was born a middle eastern rug merchant. There is hardly anything I buy that I do not try to haggle little bit.

Even as the chain stores I ask "so is there a sale coming up" or a any "associated discretionary discount". You'd be surprised how many places have no problem knocking a bit off even a sales price. It makes perfect sense -- advertising is designed to get buyers in the store. If while they are in the store they do not leave with a sale the odds of them coming back fall off dramatically. So the small loss of profit (on my items...) is definately worth doing the "What I can do to get you to buy now" shtick.

Groceries and other basics are sold with too small a profit margin for this to work, but tons of other stuff is easily sold this way. The higher the mark-up the more room for haggling. Cars are generally a good target. Jewelery, high end shoes, clothing, perfume, flowers, custom catering / cakes, hotel rooms, upper bracket appliances, furniture are all things that can has the list price be a starting point for what you are going to pay as long as you are talking to the right person. Some new hire / minimum wage employee is not going to have authority of standing to cut price themselves / ask the right people above them. A more seasoned employee will realize their is a magic range where the customer is happy about the discount and the firm makes enough profit.

For things like professional services and skilled trades the more variable the work the more flexible the pricing. You need a leaking pipe fixed in the middle of the night you do not haggle. You are considering using two or more firms to sorta quarterback a bath remodel then you see which plumbers know there several ways to make a bid more palatable. It is no secret that some internet sites can sell the fixtures cheaper than local guys get from their wholesaler -- if the stuff is all in your garage when the job starts the skilled plumbers and tile setter and swoop in do all the installs at a good clip and move on to the next job for maximum profit and maximum savings. It is your cash tied up in "inventory" not theirs and for the guys that realize this they do the labor part for a better price.

While not exactly haggling, you can even "pre-buy" your natural gas and oil by contracting with a futures company. If you put your cash at risk that one less customer that the utility company has to overbuy for and they will just charge the delivery fee. Of course if you do not guess right about the direction of the commodity there are no refunds...

[belovenow]

As a retailer it makes me chuckle inwardly when people try to negotiate the prices I've set. I know I have something they want (they set foot in my store) and I'd have to be a fool to just offer something for less because someone asked. I need to be given incentive. If I'm going to knock 10% off my price, it'll definitely be off the one item I have which has sat for 6 months collecting dust or because I know the person is going to do something for me. Most frequently the past two weeks I've been asked if I offer a "military discount." I honestly don't know where that came from, but your line of work is your own choice and my tax dollars support them already (yes I'm a patriot, which is why I don't cheat on taxes and I also talk about how great our country is and don't put up with ignorant anti-American sentiment).

I've a lot of Indian friends and I know it's cultural to haggle, I even feel like it's fun to do myself (nothing is quite like the great feeling accompanying a perceived good deal). I haggle only for special situations, and they tend to be when I'm buying a service (which I know is subjectively priced) or big ticket items (which always have wiggle-room pricing-wise). I know of people who never haggle at car dealerships and I just feel bad for them - any insider will tell you that unless you're buying a Saturn of course you can get free stuff or a lower than sticker price.

This topic brings to mind how I've had customers come in and declare to one or more of their children that they need to stay within $1.00 of a particular price range the parent has set only to see the customer then step out and next door to buy a $4.00 cappuccino which they drink down in 5 minutes!

[chet everett]

I am sure mbuszu is, like most other business people, aware that the price elasticity of every item is complex. If one wanders into a store and appears motivated to make a purchase for some immediate need it is unlikely that they will compare prices across town let alone on the internet. OTOH if a shoppers appears to know that an item is available for less elsewhere and is in no hurry then the seller would be foolish to let them leave unless their "cost to sell" would not be met by the potential offer.

Every transaction is a dance between buyer and seller...

[Oildog]

I think its supply and demand. Last year (before the crash) I bought a car that was in demand and the dealer didnt budge other than the floormats. If I would have been interested in one of the models not moving to well I think they will work with you more. I was shocked that when I offered to pay cash for a new car, they wouldn't budge.

[Houston3]

We bought a new car last month and they knocked off a little over $3,000.00 off of the sticker price and it's a good car too. We also had the Harris county clean air thing and got another $3000.00 credit, for a total of a little over $6000.00 off of the sticker price.. And I checked the bottom line to be sure that they did not add anything back on to it... I had all of the numbers written down before we went in... I used the internet to get the base prices from the dealers in Houston.

This is the first time I have used the internet to help buy a car and I think it helps by letting you do the numbers before you go into the dealer. That way they have a harder time playing their numbers game. LOL

We paid the about same for this car that we did 12 years ago on the car we got rid of and this is a better car.

[sskkc]

When my dh was in the military, I asked every merchant... some do offer it, but don't advertise. So, it pays to ask!

And if I was in Joe's Liquor Store and he didn't offer a military discount, but his prices are within 5% of Bill's Liquor Store and he DOES offer a 10% discount, Bill got my business and the business of the ten friends I told about Bill's discount and Joe's "I paid my taxes so I don't owe you anything" attitude.

And the price they are charging me for a bottle of Merlot has NOTHING to do with my desire to buy a Mocha twice a month! (And frankly, it's none of their business!) Though the discounts I was/am always looking for help to PAY for that mocha. (As does my membership in MyPoints - online shopping rocks!)