Here’s some advice on using negotiation tactics learnt from Indian parents to save yourself plenty of money.

One thing about being the child of Indian parents is that you get to see them in operation across a number of areas – feeding 200 members of family with a highly effective mobile kitchen infantry unit; fitting 200 members of family into a three bed-semi; getting every single auntie you’ve ever met to drag you onto the dancefloor at a wedding; organising an array of potential suitors when a daughter or son is ready for marriage (I’ve managed to evade this one so far!).

However the most impressive, and to be honest most uncomfortable, is when they are negotiating over buying something. You see being brought up in the UK has given me the fantastic quality of English politeness, which is respected around the world. However our desire to be what we think is polite often leads us to missing out on opportunities to save money.

I remember many a time wanting to curl up and become invisible when the following conversation would take place when on holiday between my mum and usually a shop keeper trying to sell some souvenir or gift:

Mum: “How much is this please?”
Shop keeper: “It’s $50 Madam” (or whatever the currency was)
Mum: “That’s too much, I’ll give you $5″

Now my wanting to be polite would never let me start the negotiation off there, but my mum had been genetically engineered as an Indian to know how to negotiate, and had also probably seen her parents do the same. And you know what? She might not have got it at $5, but most likely at $10 (still less than my starting price would have been), and interestingly that was usually the price the shopkeeper was aiming for anyway.

This tactic is known as an Opening Gambit in negotiation terms and stated simply means “Ask for more than you expect to get”. You will quite often surprise yourself with what is possible.

There’s a saying that goes “You never make more money per hour than when you’re negotiating”. If you think about it, it’s usually true.

What’s being too polite costing you? Let me know and what you could do about it!

Check out my upcoming Top Ten Indian Negotiation Tactics for more on this!

How Being Too Polite Costs You Money is a post from: Smart Money Mindset.com

Save Money on Virtually Anything With The Top Ten Indian Negiotiation Tactics (TINTs)

Here’s my top ten list of the Indian Negotiation Tactics (TINTs as I call them) that I have picked up off parents, uncles, and random relatives I’d never seen before or probably will again…

I’ve used these and similar tactics to negotiate anything from £5 off a hat to over £100,000 off an investment property. The key is to take one tactic and try it out next time you are buying something, get comfortable using it, and then add more tactics as you go.

Of course you probably can’t use these tactics in Harrods (although I’d be interested to hear if anyone has!) but without doubt these will save you money.

10. Be a reluctant buyer

Approach the negotiation as if you’re not really interested in buying and just looking. Any whiff of keeness on your part and the price automatically increases.

9. Get them to go first

Never ever give your price first – even if they have a price tag get them to start the negotiation with a price. If possible get them to give you an already discounted price before the negotiation starts. A good line is: “What’s the best price you could give me on this my friend?” (add the my friend bit in there to make it harder for them to be hard-nosed with you!)

8. Flinch and Use Silence

When you get the price flinch, as if it almost hurts to hear that price, and at the same time say something like “Wow!” or repeat the price… then stay silent, even if it gets uncomfortable. The last bit is key!

7. Always ask for more than you expect to get

Always set your price lower than you’re prepared to pay. If you set it at what you want to pay and they accept immediately you’ve lost out on saving some money!

6. Smile and make it fun

Negotiation is a game and treat it as such. Always be smiling and friendly, joke and make it fun. It’ll make the process more light-hearted and harder for the seller to resist your demands.

5. Bracket

Bracketing is where you make a counter offer so that the average of the prices is really what you’re prepared to pay. E.g. If the price is £20, and you’re happy to pay £15, offer them £10 and let them come down.

4. Take up lots of their time

The more time you take up, the more energy and effort the seller has invested in the negotiation, and the harder it is for them to walk away without getting something back for all that time and effort.

3. Remove authority

Make it so that you are not the decision-maker. e.g. “I have to check with my husband/wife etc.” That way you always appear friendly and blameless for all the negotiation hassle

2. Ask for that bit extra

Even once you’ve got down to almost agreeing a price and you sense the seller won’t budge, ask for something extra to seal the deal that is not cash. For example if you’re buying a bed and sidetables, ask for a lamp for the sidetables so you can read at night.

1. Be prepared to walk away

And finally, but most importantly – in any true negotiation you have to be prepared to walk away. The moment you think you want what’s on offer and won’t go back your mindset will change, and the seller will pick up on this. Always be prepared to walk. Very often you get the deal just as you’re walking out the door.

Let me know what you think of these!

Save Money With Indian Negotiation Tactics! is a post from: Smart Money Mindset.com