Price negotiation (or “haggling,” as I like to call it) is one of those mysterious skills that seems to have largely faded in many mainstream American stores. But haggling is not dead, and, with a little practice, you can use it to save money!

This practice is particularly helpful if you’re making a big purchase, or if you’re paying with a credit card, which is a notorious reason for causing bankruptcy.

Step 1: Know When & Where to Haggle

There’s a time and a place for everything. A packed grocery store at 5:30 on a Friday is not a good time to ask the manager to knock a few cents off a torn bag of flour. Here are some clues that haggling might be an option:

• It’s a slow day. Busy vendors don’t need to negotiate, because they’re making lots of sales without cutting prices. But on slower days, sellers have more time to hear you out.
• The business is small. Independent shops are good places to haggle because they’re usually not tied to corporate-mandated pricing structures.
• You’re buying secondhand. Thrift stores, flea markets and garage sales tend to be hot spots for negotiation.

Step 2: Do Your Homework

Before you can execute a stellar haggling session, it’s important to do a little research and/or thinking about your intended purchases. Naturally, you’ll want to scope out potential prices you can expect for what you plan to buy (and the internet is great for that kind of research). Once you know that, sketch out the following:

• Target price: What you (realistically) want to pay for this item.
• Resistance point: Your price ceiling. The very most you’re willing to pay for an item.
• Initial offer: The amount you’ll first offer the seller. This should be somewhat below your target price.
• Alternative: A “plan B” in case you and the seller can’t agree on price. For example, if you’re buying a car and can’t meet on price, maybe you’d be willing to pay more with some accessories or free maintenance.

Step 3: Make It Happen

Once you know what you want and how much you’re willing to pay, it’s time to engage in person-to-person haggling.

• Be assertive but polite: Keep in mind that nobody wants to haggle with a bully. If you treat people respectfully, you’re much more likely to get what you want. But remember that it’s your money you’re about to spend, so don’t back down too soon.
• Tell a white lie: Mentioning that you’ve gotten a better offer somewhere else or that you “don’t really need” something can motivate a seller to work with you on price.
• Point out flaws: This technique works well in second-hand buying situations, but I’ve also gotten prices lowered by major clothing retailers. Look for loose buttons or sagging seams – these flaws are easily fixable and most vendors will knock off a few dollars for them.
• Don’t be afraid to walk away: If a seller won’t meet the price you’ve decided you’re willing to pay, leave. This may or may not inspire a last-minute change of heart, but it will free you to try your hand at haggling with someone else.

Good luck, friends, and happy haggling!

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