The best negotiation technique I have ever heard: "Whoever mentions price first, loses."

not at Saturn. I find it hilarious when people come in and try to haggle.

@bob9: That's okay, saturn can keep its "we don't haggle, we sucker everyone!" policy.

I've actually attended negotiation courses where they break down the stages of a negotiation, and you can't treat every stage with silence.

1. preparation - set your minimum and maximum prices. Make sure you've researched the possible permutations of offers they could present. Understand what features / items you value the most. Put a percentage on these as in, this feature (or component of the deal) is worth x% to me.

2. exchanging information - the salesman's job is to give you as much POSITIVE information as possible. Your job is to give away as LITTLE positive information as possible. Be ambiguous when asked leading questions.
"Isn't that great?"
"It's fine. It's nothing I haven't seen before, but it's OK."

3. bargaining - actually mentioning price is sometimes the preferred tack, as this gives you a negotiating post. "I am looking to make a deal at (a figure x percent less than your final offer), what can you do for me?" This is where stage 1) comes in handy, as you can set X without looking like a fool or a tight ass. However silence is pretty powerful when the salesman mentions price first.

4. closing and commitment - in this day and age, get everything down in writing / on the lease / on a note which you then tell the salesman, "OK I expect this to be on the sales contract. I'll email / write you what we've discussed.

Qualify your answer Bambino? how do we sucker everyone?

The only other thing to mention is that any salesman worth his salt will know most of your tactics, and the best approach is indifference / ambiguity. His job is to make you "excited" to buy. By taking the emotional component out of the pitch you set the tone for the negotiations. And yes I've seen the "hard sell", in a past life I sold "vacuum cleaning systems" and the quickest way to deflate a salesman is to tell them, "calm down, I only want to see all my options before committing to a sale."

Learned decades ago and has NEVER failed me.

The person who has the greatest leverage in negotiations is the one who cares the LEAST about the outcome. Remember, there is always some alternate source for whatever you're buying.

I typically buy a car in 10 minutes or less. Either you do MY deal, MY terms, or I walk. Quick & Easy!

My best negotiating time was for an almost new car (that I really wanted) and what worked was politely saying. "This is the car I want, but I'm only willing to pay xxxx". They would protest and I would get up to leave. I headed for the door three times (made it to the parking lot once). I paid what I wanted to, and I said no to all the add-ons they kept throwing. Also, I didn't play the other little sales games; every time they left us in the little room with no windows while they consulted "management", we would leave the room and go sit in the different new cars. That really unsettled them, because they thought we had walked out.

The one thing that has helped me in the past more than anything else is preparation. For example, when my landlord tried to raise my rent by 10% this year, I balked because that was way more than the inflation rate. Once I did that, and quoted the inflation rate, she was so stunned she agreed to a 2% increase; this after not having had a rent increase in 5 years.

@bob9: First, there's really no point in arguing with someone who works FOR saturn, so keep in mind that I already know your opinion is biased.

Second, the only person 'no-haggle pricing' benefits is the dealer, since they know what their profit will be on every vehicle, plus add-ons. If you're too scared to haggle for a major purchase (house, car, etc.), then you shouldn't be buying one by yourself. This idea of 'we're doing you a favor' is complete bullshit and laughable.

@CreativeLinks: I don't see how this is a technique.

@bob9:
I don't know about Saturn but I know a company tried that where I live(I think Toyota) in test dealerships and independent numbers showed in fact, people paid more on average in the no-haggle dealerships.

@stuckonsmart: Well said.

@homerjay: More of a rule really. The technique comes in employing it.

I learned it from a negotiation course I had, and when I was interviewing for a job I was asked:

"So what Salary are you looking for?"

I almost said $40,000--cause that was what I wanted, but I thought about the rule, and turned it around and said.

"A salary that will let me put my full engeries into this job and company. What salary range are you considering?"

To which he replied.

"We are looking between 45 to 48 thousand."

I said 48 would be perfect.

I got the job, and an extra $8,000. All because I didn't mention my price first.

Bambino, yes I work for Saturn, but you will find me very unbiased. Please qualify your opinion.

Rocnrule, the Scion (Toyota) brand still has no haggle pricing. While you may pay more, the experience is often found to leave the customer feeling happier with their purchase than at a dealer where they have to haggle and deal with someone that does not want to give them their best deal.

I've worked for Toyota, and the shady crap that went on in the show room was off the hook. I then went to Scion and I'm now at Saturn. I will never work for a dealer that haggles it's pricing.

Two things to consider people...

1. Prices are often Fixed and non-negotiable. Don't try this crap in retail or foodservice. There is no negotiating.

2. Someone who is aggressive about getting a deal is more likely to be told to leave than to get a deal because the seller has a certain point at which the deal means he makes nothing, and at that point, why should he make your life better when you are trying to undercut his income.

@Bob9:

You do realize that all dealerships offer a no haggle deal? It's called sticker price.

These are good techniques. I especially like the silent treatment. Salesmen will talk and talk and talk....

Glad to see that the linked article at least gives credit to Dave Ramsey since this is his advice verbatim.

@Thrust:
Really? You think retail prices are fixed? Sure, they may not deal on less expensive items. But you think they won't deal on major appliances, furniture, electronics? If they are making money on it, then there is room to negotiate. Retailers only want you to think that the prices are fixed. They aren't.

I just got a killer deal on a lease by pitting them against each other. I used one of those "We'll have dealers fight for your business" sites just to get in touch with a bunch of them and then I had them fight for my business- all through email. The only problem came when one of them wouldn't honor their agreed upon price- but that story was covered in an earlier post and on the forums.

Why go there when you can do it all from the comfort of your own easy chair.

@Bob9--
I never have understood the "no haggle" pricing sceme...isn't EVERY dealer no haggle?
If I want to go into a dealer and pay what the sticker price is are they going to argue with me?
Everytime I see no haggle mentioned I think, what a great slogan made up by car manfactuerers and dealers!
Instead of "Pay what we want you to for the car!" they say "No haggle" the sad thing is people buy into it...

@veronykah:

Maybe things have changed, but from what I have seen, there is generally less markup on cars with "no haggle" pricing. Its not like its a $60,000 Saturn - its pretty cheap to begin with and should be a lower pressure sale.

@LordSkippy: Is sticker price the same as MSRP? Because some cars sell for more than MSRP depending on their supply and popularity, so I wouldn't consider that a "no-haggle price."

@anatak: Yes, I do believe prices are fixed. Nothing pisses me off more than when people haggle on the price of an item any smaller than a car. First, WHY should your be given a deal? Why are you so special that a clothes dryer that cost me $400 should cost you $350?

Second, if YOU are getting a deal, who does it affect? The salesperson probably gets penalized. The company will probably start recovering such losses on other items/customers. So WE all pay more so you can get a deal.

I have to tune in on this one:
Saturn DOES haggle on prices. I fought a long drawn out battle over a SC2 coupe way back and got distracted by a trade in z-28 camaro. We went back and forth and I explained that there had to be a package for the saturn as adding all the options in had a compact car cruising up to Luxery car prices.
I had the guy actually come down on the camaro (saturn used lot) and then they started a 'work up' to order a car... In the end I looked at the deal and saw nothing but loss on all sides and bought a Nissan.

For fixed prices, think of it this way.

When I worked a pizzaria, every couple days I'd get someone in there who thought we should give him a deal. We COULD give him a reduced price, we COULD do it as a credit or one of a dozen other ways that the company wouldn't even know. But why the f**k would we do that? Why would we, what makes him deserving? Because he asked? Fine, Can I please have the USS Forrestal (CV-59) or Saratoga (CV-60) aircraft carrier? They're just sitting there in Philadelphia waiting to be scrapped... Nobody need them and I'd GLADLY take them off your hands. Why not? You're just going to throw them away. C'mon, you can do this for me, I won't tell.

@veronykah.
If you want to haggle at most dealers you can, if you don't then don't. Buy it at sticker if you feel the price is right. But remeber some dealers do want more for the car depending on popularity. You are not going to haggle down a Pontiac Solstice right now, but you might haggle down a G6 depending on the dealers inventory.

Saturn does haggle on the used lot. But that is it. You cannot haggle the price of our new vehicles. Which is a good thing and people seem genuinely happy when they leave. I honestly have nothing but good things to say about our facilty here. Our F&I guy is a little shady, but he is very limited as to what he can do so that ruins any scams he might have planned if I don't do it first.

@Thrust: "1. Prices are often Fixed and non-negotiable. Don't try this crap in retail or foodservice. There is no negotiating."

You'd be shocked. :) Last suit I bought my husband I negotiated a $700 price tag down to $450 with free tailoring and a tie thrown in.

"2. Someone who is aggressive about getting a deal is more likely to be told to leave"

You don't have to be an asshole to negotiate.

Negotiation was maybe my favorite course in law school. What's really important, IMHO, is to know what outcome will make you happy and REMEMBER THAT. People soooooo often get upset when they get what they wanted but feel the other person got the better deal. If your price range to buy something is $20 to $30 and you get it for $25, and then find out they were willing to sell for anything from $20 to $40, don't gnaw your spleen over that $5; be happy you got the deal you wanted! When this happens while the negotiation is still going on, settlement often becomes impossible.

The ability to walk away, as someone mentioned above, is huge. If you NEED something you're at a disadvantage. Know what will make you happy, walk if you don't get it. No loss to you.

I like to give the wrong answer in high-pressure sales situations. It's a different version of not getting enthusiastic or remaining silent, which I personally find more amusing. If a car salesman tries to get me wound up about a car's features, I launch into a lecture on the problems with carbon emissions from vehicles or start quizzing him about the religious ethics of car ownership or try to debate whether turn signal laws are consistent with a libertarian theory of law. It's just a much more fun way to derail the pitch when the salesman is being a jerk. And since it's not typically a strategy they cope with, they often have a very difficult time getting back on-message. (Also, when you tell someone you religiously object to something, they're not going to keep trying to sell it to you.)

@Thrust: "Why are you so special that a clothes dryer that cost me $400 should cost you $350?"

I'm guessing because I'm a lot less angry than you and am making the salesman's day more pleasant. :)

Probably also because I'm loyal to stores and salespeople, I know the people I shop with, I routinely recommend salespeople/stores I have a good experience at and say "please tell him I sent you" when I send my friends.

Leaving aside my repeat business, the seven other people I send to shop there is easily worth their $50. Cheapest advertising they've had all year.

@stuckonsmart: The exact same thing works in the dating world as well.

Information asymmetry

So can I have my aircraft carrier then?

That's the best advice for good negotiation- know what you want to get out of the deal. You can't walk into a car dealer hoping to get the price down to $10 with mudflaps and free carwashes for a year. That's not negotiating, that's bullying.

I hate hagglers. It is so immature.

I am a commercial supplier. Sometimes the hobby trade will buy from me.

To be blunt, I like selling to the hobby trade. It is an added source of revenue and lets me evaluate another segment of the market and how that market might affect the commercial trade.

This said, my prices are fixed. The gidgetmasher 5540 is $19,400.

Want 12 of the gidgetmasher 5540's? Not a problem, you can have the same price as the other customer which bought 12 of the gidgetmasher 5540's..... The price is $19,400 per gidgemasher 5540. And my price is pretty darn good. In fact it is the best price on the market. I am beating my nearest competitor by about $200.

So what is the problem? The hagglers. $19,400 seems like a bunch of money. Can't we negotiate? Can't we give them a better deal, 'cause they are going to be our best customer EVER.

Yea, right.

Just couldn't resist weighing in on the saturn no-haggle pricing thing.

I'm a fairly happy saturn owner, and I bought my car (sl2 sedan) in '02 from saturn, for 13,000 something with options... IMO, not bad for a car that handles as well as a miata, gets 40mpg, and has better acceleration than most cars under 20k... No haggling, because GM was already losing money on those cars (which is why they went out of production, after that).

Now, take a look at the base price of a Saturn Ion, then compare that to a chevy cobalt (same damn car).

12,300 vs. 13,175... there's you're haggling, already built into the price. Depending on the dealer, you might be able to squeak them below what an Ion would cost, then again you might end up worse off if they don't feel desperate that day.