Speaker 1: Hey guys, it's Practical Psychology here, and today we're going to learn how to haggle better. Now if you don't know what haggling is, it's basically the same thing that bartering is, which is basically trying to negotiate a lower price when you're buying something. So many people stay hesitant to haggle better, some of the time because they feel like they're intruding onto someone else whenever they try to lower the price. So I'm going to give you some amazing tips on how to haggle better. So the first tip is to do your research. Start by asking a very important question, how much do you want to spend? Now when you set your financial plan, your objective is to arrive at a deal that provides value to you and the person that is selling the product. So you have to do your research on the product itself. You need to research the item and figure out what a fair price is. Then you can lower it just a little bit, maybe by like 10%, and find out what an actual good deal is. So what do you actually want from the item? There's no reason to be paying for additional components that you'll never use. So look around and try to find the best item that you think will suit your situation and spending plan. You can check eBay, Amazon, Craigslist, and other online marketplaces for the best deal. Now you'll find out that in different places the prices will be different. And if you're buying it locally and with someone that you may barter with, we can move on to the next steps. But if you're buying it from someplace like Amazon or maybe Newegg or some other online marketplace where the price is non-negotiable, then you might want to close this video now. So the next step is to build a rapport with the salesperson. So what's the principal thing you should do when you first meet the salesperson? You need to grin and ask for their name. And this is very important. If you've ever read How to Win Friends and Influence People, this is a huge tip. You need to know their name and you need to use it frequently. Now when they give you their name, you can also give them your name. And it's stunning how a basic trick like this can begin to separate any obstructions in the negotiation process. So some cheerful visit and discussion and maybe just talking a little bit about how your day is going and how their day is going can build rapport and it will make you guys start to like each other. And if you're stuck for a thought, try to talk about the climate or check out my other videos on conversation tips. And it truly doesn't make a difference what you talk about as long as it's not something too touchy like religion or politics. And try to keep the conversation long enough to break the ice, but not long enough to make it kind of creepy to where you get off topic and you forget what you're doing there. So have some good time and try to develop a friendship, but always remember that you're there to win a deal. So psychologically, if you can get a salesperson to gain an unconscious bias towards you, that is they like you, they will be much more compelled to give you a better deal. So the third tip is to wait. A lot of people want to go in and just try to haggle and negotiate the price down as quick as possible. But persistence is very important in haggling or bartering. And try not to be in too much of a rush to do a deal. And if it's possible, try not to even say the price that you're thinking of within the first five minutes. Let the salesperson think. And if you can, try to go back to an off topic discussion. And it's generally great to give the salesperson a chance to inform you about the item before you actually buy it. So let them teach you about the product. And if you have to, play dumb. You may know more than they know about the product, but if you have to, play dumb and act like you don't know much. Because simply them telling you about it, letting them teach you, will give them a bias that they start to like you. Because we like people that we can teach. We like people that we add value to. So give them a chance to demonstrate the offer that they're presenting. And they might even have the audacity to offer a markdown or a price clearance on a specific product since it lacks a feature that you're wanting. Also while they're introducing the product to you, be on the lookout for flaws, as we'll discuss these in the future step. So the fourth tip is to stand your ground. Now a discussion and conversation gives you the chance to discover more about the individual you're dealing with. And maybe their motive on selling the product. Maybe they need some money to pay for college. Maybe they need to pay off a loan. If their attempt is to make a deal, swift and smooth, and to get X amount of money, Maybe they're only looking for $2,000 or $50 and they're not going to go any lower. This is okay. But you may want to back out. However, if it feels like they're just really wanting to sell the product, they're trying to steamroll you into a deal, it might be because they're hiding something. Keep asking questions and trying to break down barriers. And learn about this product as much as you can. Try to figure out what they're truly thinking about and if they actually feel like they're getting a deal from this sale. And if you buy it really quickly, and in the future you find something wrong about it, you're going to have buyer's remorse. And even if there's something not wrong about it, you still may feel buyer's remorse for buying it too quickly. So the next tip is going to be about numbers. So when you start negotiating, never ever give your price floor. Never go the lowest amount of money that you will pay for a product, or the price ceiling that is the highest amount of money that you'll pay for a product. Now when you go into offering the first price, try to get a decent deal low enough that it's almost annoying. If it costed them $100 to buy it, and you can buy a new one for $50 on eBay, try offering $20. It may seem like a scam at first, but of course they will most likely say no. But if they say yes to a higher price, then the rest of the day you'll be wondering how low you could have gotten. So the first offer, see if you can get them to say no. You want it to be low enough that it's annoying, but not low enough that it's offensive. And here's another tip. Whenever they are talking, after you ask for a price, make sure not to say anything else until they talk. A lot of people try to fill this gap up with some other conversation. After you announce a price, stick with it until they say something else. They may think for a couple seconds which might make you uncomfortable, but work through the silence. Make sure you smile and keep your body language open and friendly. Keep your toes pointed towards them and remove any objects between you two. And oh yeah, the first time that you meet them and you ask for their name, make sure to shake hands. And also shake hands after the deal is done. So another trick is to have a get out of jail card. This is basically you have to come up with a reason to make sure that you're not there more than the amount of time that you want to be there. For example, say that you have a dentist appointment in 10 minutes, or that you had to pick up someone from the school, or that maybe your wife is sick and you can't make the deal until they are doing better. This will get you out of any sticky situation without hurt feelings. Now if possible, and you're getting towards the end of the deal, but they still want X amount of money, maybe they need that extra 50 bucks to pay off their loan, you can start asking for things to throw in. When you go in to shake their hand and ask them their name, also be looking around the environment to see if there's anything else that they could throw into the deal. For example, if you're buying a car, maybe they could throw in some cleaning tools, or offer an extra tire. Make sure that you're not being offensive when you ask for something extra. Make sure that it's appropriate and that you're being sensible. And this will vary with every situation. And if you can, try not to do it towards the beginning of an arrangement, more towards the end of the arrangement. Maybe when you get towards a price that the seller wants, but you still think it's too high, suggest adding in a smaller extra to accept his current price and continue with the next tip. So the next tip is clenching the deal. No salesperson will toss you out of the shop requesting a markdown, as long as you do it in a well-disposed and gracious way. Now deals are there to be done, particularly in an emergency. If you see someone needing money on a Craigslist ad or a Facebook post, then you are at the advantage. When you get that better than average deal, the feeling of fulfillment you feel is not just about the money you've saved, it is also demonstrating something about yourself, that you've set yourself a test and you've came through it as a champ. And the more you do it, the better you will get. Your negotiation skills are just like any other skill, you can develop them and cultivate them with practice. And I hope these tips get you off the floor running, and that you can go out and practice this new haggling and negotiating skill. If this video added value to your life, click the like button. And if you have any extra thoughts, leave a comment below. Thanks for watching, and subscribe for more.