Control Business Expenses by Negotiating and Bask in a Better Bottom Line
Recently I was hired to help “save” a company into prosperity. They had strong sales, but were overspending. So, I encouraged the owner to evaluate every expense with the goal of saving 10%. He was extremely uncomfortable with the process of negotiating for better pricing and reduced vendor fees – hence, my engagement.
The idea of “haggling” is intimidating for many of us. As consumers, we have been trained to pay the price marked on goods or services without question. If we feel the price is too high, we abandon the sale and look for something less expensive.
Save Money with these Strategies
We know we have the option of asking for a lower price, so, why don’t we? The three most common reasons are: because it makes us uncomfortable, because we are embarrassed, and because we don’t want anyone to think we can’t afford it.
My advice is simple: Get over it! Step outside your comfort zone and ask for a discount.
I recommend following the “Rule of the 4 B’s”:
Ask, “Is that the best you can do?” It’s a simple question that instantly puts the ball in the other person’s court in terms of what they are willing to do to win or keep your business.
It’s hard to resist a pleasant person with a positive disposition. You often can make someone’s day just by being kind and courteous. Once you win them over, you’ll be surprised by just how far they will go to help you out.
Take control of the buying process. You have the money and they need to sell a product or service. Before you interact with the sales person, settle on the maximum you are willing to pay and never exceed that price.
Merchant credit card transaction fees can range from 2% to 5%. Offering to pay for your purchase in cash could save you money if the vendor is able to slash these built-in fees. Hint: Ask to see or speak with the manager, who will know the merchandise markup and can discount instantly.
The benefits to your business can be substantial – my client achieved an 8% savings across the board, improving his bottom line without selling a penny more. The first time is the hardest, but once you get the hang of it you will never pay full price again. Just imagine what you can do with the money you save. Tahiti anyone?