Negotiating Deals: Leverage in a Bad Economy
COLLINS: Get smart, get rich, but first maybe you need to get moving. Here is a list of the best places for job growth between the years 2000 and 2007. Topping the list, Tooele County, Utah. Growth there, more than 123 percent. A distant number two, Kendall County, Illinois, at almost 64 percent growth. Flagler County in Florida, just behind with about 62 percent. Number four on the list, Loudoun County, Virginia, followed by Washington County, Utah, and St. Lucie County, Florida. Rounding out the top 10, Douglas County, Colorado; Lee County, Florida; Rockwall County, Texas; and finally, Collier County, Florida. Interesting. Negotiating a deal in a bad economy, companies may be desperately competing for your business. And here to show you how to make the most of that leverage, Lisa Freeman, editor-in-chief of "ShopSmart" magazine. She is in Yonkers, New York, this morning. Thanks so much for being here, Lisa. It feels like we're talking a little bit about a ton of these different things that people just plain forget about. Where do we start, some of these hidden discounts?</s>LISA FREEMAN, "SHOPSMART" MAGAZINE: Well, one of the things you can do when you're negotiating is to encourage silence in the conversation. If you're going back and forth and not getting anywhere with the salesperson, say, hmm, I'm not sure. Those little silences can actually open up the door to a better offer. So that's one technique.</s>COLLINS: OK. So don't be afraid of the silence.</s>FREEMAN: That's right.</s>COLLINS: OK. Very good. Because sometimes it can get intimidating when nobody is talking.</s>FREEMAN: Right.</s>COLLINS: Just a lot of eye contact, which is probably another good hint. What do we do from there?</s>FREEMAN: Well, the other thing you can do is simply ask for a better price. If you're in a store and you're not sure where to begin when you're negotiating, simply ask for a better price. See if they can do better for you on that product. And if they're not willing to budget -- say you're buying a big screen TV and it's already on sale, find out if there are other things they can do for you. For example, maybe they can give you a break on installation or delivery, or other parts of cables or things that you might need to go along with that television.</s>COLLINS: Yes. And then you always say, never, never give up. Something about, don't take a "yes" -- no, don't take a "no" from a person who can't refuse "yes," or something that's way above my pay grade.</s>FREEMAN: Right. Make sure you're negotiating with someone who can actually give you a better price. I have found that more and more salespeople are able, have the flexibility, to work with you on price. But if you're talking to somebody, make sure they're the person who can work with you. And if not, ask for a manager or supervisor.</s>COLLINS: OK. Does the manager or the supervisor really want to talk to you?</s>FREEMAN: Absolutely. They want to make the sale. They've got to make sales to, you know, keep that cash flow going, and they want to work with you. And they're more desperate than ever, because sales are down at many places, and they really want to make that sale. So make sure that -- don't be embarrassed or shy. Go and ask for that supervisor.</s>COLLINS: Sure. And I think it's probably kind of easy for this next one, where you say, all you have to really do is say, "Can you do better for me?"</s>FREEMAN: Yes, absolutely.</s>COLLINS: Maybe give them a wink?</s>FREEMAN: Yes. Well, another thing you can do is, in addition to asking if they can do better for you, is look for opportunities for them to help you get a better price. For example, maybe there's an imperfection on an appliance or a piece of furniture or a piece of clothing. That's a good opportunity to jump start a conversation about what a better -- you know, a better deal that you might be able to get on that product.</s>COLLINS: All right. What's your favorite tip here? What's the most important thing to do when you're trying to negotiate?</s>FREEMAN: Well, I think you have to do your homework. You have to make sure if you have got your heart set on a particular electronic or a piece of furniture or an appliance, make sure you go online first. Go to sites like pricegrabber.com and shopping.com and Yahoo! Shopping and do a little price search to find out what the best prices are on those products before you head out. And what you might want to even do is print out that list of the prices that you find online and bring them to the stores. Show them what else you can get elsewhere.</s>COLLINS: Sure.</s>FREEMAN: And that is a great negotiating tool.</s>COLLINS: Real quickly before we let you go, a lot of people may not realize that when you talk about negotiating, we're not just talking about cars. I mean, I think that everybody thinks, well, yes, of course you're going to haggle on a car. But you're talking about appliances, furniture, even clothing.</s>FREEMAN: Absolutely. I was in an outlet store not too long ago, and I saw a button was loose on a jacket. And I said to the cashier, "Could you give me another 15 percent off?" She said, "No problem." So this is a great example of how more salespeople, cashiers are able to give you discounts nowadays. So don't hesitate to ask. You may not even have to ask for a manager or supervisor.</s>COLLINS: Lisa Freeman, editor-in-chief of "ShopSmart." magazine. Appreciate your time and your tips. Thank you, Lisa.</s>FREEMAN: You're welcome.</s>COLLINS: And we do want to hear from you. Are you a millionaire in the making because of your financial habits? Share your story and your advice: ireport.com/millionaire. You can also learn the secrets catapulting your fellow viewers into that elite club. AIDS and African-Americans: new claims the U.S. government is doing more to fight the disease abroad than at home.