I am always surprised when I talk with friends and family about the subject of negotiating a good price on things they buy when out shopping, and that’s because very few people ever take the time to do it.

Most people will just walk into a store see the item they want and buy it, or worse if they don’t have enough cash they walk away without ever asking if there is a deal to be done. Personally I think this is a very British thing as many of our European neighbors do this as a matter of routine, they wouldn’t dream of paying the first price they see.

Now more than ever is the perfect time to ask the question, “what’s the best price you can do for me today” we are in the middle of one of the worst down turns in high street sales in living memory, which means all retailers want your business and they want it today. Now the worst thing that can happen is that they will tell you the answer to your question, as long as you are polite and reasonable and except that the retailer needs to make a profit, you should do just fine. So next time you are making that purchase, ask the question, you will be amazed how much you can save, from as little as 5% to as much as 50%.

The Ten Golden Rules to Haggling

• Remember to have fun, Haggling is a game do be too serious and always smile.

• Never ever be rude or lose your temper.

• Be reasonable, the seller needs to make a profit.

• Make sure the Haggle is appropriate, not everywhere is good, for example don’t haggle in the supermarket, it won’t work.

• Do research first, look at other stores and go online, make sure you know what a good price looks like.

• Decide how much you can afford to spend, start low so you can work up, remember they want to haggle too, a good rule of thumb is start at half the asking price and be willing to pay a third less.

• Point out any imperfections at the outset, be will to compromise with ex display stock etc.

• Dress for the occasion, leave the Rolex and Armani at home, look like you need a good deal.

• Don’t be afraid to walk away, say you are going to another store, chances are they will give you a better deal to keep you there.

• Finally, don’t become attached to the item, you need to be able to walk away if the deal isn’t right, a common trick with motor dealers is to let you hold the keys so you feel like the car is yours.

Top Ten Items to haggle on before buying

• Car (new or used)

• Mortgage Rate

• Jewellery

• House Price

• Furniture

• Holiday

• Big Ticket Electrical Items (TV, Fridge, Dishwasher etc)

• Home Improvement’s such as Double Glazing or New Conservatory

• Upgrades on Mobile Phones both handset and tariff

• Insurance, Home Car and Life

Here are some other points to remember for getting the best deal’s at the best prices.

Remember that shops and suppliers want to sell to you

Shops, online or in the high street, only exist by finding buyers for the products that they stock. Having goods, but no buyers, is hugely costly to shop owners so they need to shift their stock, maintaining cash flow and replacing old stock with new.

So if you have taken the time and trouble to visit a shop on the web, or on the high street, you present an opportunity to that shop keeper, by becoming a potential customer for their goods and services.

If you walk out of their shop without buying, then that is a big opportunity missed for the shop owner. After all, by becoming a customer now, you might become a highly valued long term customer in the future.

Very few good shop owners like to see you walk away empty handed and then buy from one of their competitors.

You, the buyer, have considerable leverage with the shop owner and you are in a great position to negotiate to get the best deal.

Remember that shops have to make a profit

Having shown that shops want, and need, to sell to you, we have to remember that shops and service suppliers need to make a profit.

There is no point in asking for a big discount of it means that the shop will not make any money from the deal.

Good negotiation creates a win win situation. This means that the shop benefits from you being a customer, by making a profit on the sale and by you spreading the word to your friends and family about them.

You also have to benefit from the negotiation too, by getting a reduced price, or discount of some sort. You do this by being reasonable.

Be reasonable and polite

There is little point in negotiating for low ticket items as saving a few pence here and there isn't worth the effort. When buying larger consumer items such as washing machines and televisions, for example, it certainly pays to negotiate as you can save a lot of money.

Negotiating for a 10% discount will probably be more effective than striking out for a larger reduction as this would be more likely to make the deal unprofitable for the shop or supplier.

To be successful in your negotiations, you have to present a good reason for your request. By backing up a discount request with sound facts, you are making a stronger negotiation stance and are more likely to succeed.

For example, if you know the shop down the road is selling the TV that you want for £20 less, then ask the shop owner to price match.

The shop owner wants your business so say to him (or her) “I can buy this cheaper at your competitor, so what are you going to do to win my business now?”

Very few shop owners will let you buy from their competitors (remember the benefits of long term customer retention and word of mouth marketing) when presented with a polite and reasoned negotiation stance.

Remember to negotiate with online shops

Most online shops operate in a very competitive marketplace and have to work hard to win your business, either through attractive prices or exceptional service.

Just because a business operates only on the Internet, this doesn't mean that you can't negotiate a good deal with them.

As most e-commerce web sites publish contact telephone numbers - and you should consider how sensible it is to buy from a web site that does not publish working telephone numbers - you can always negotiate by phone with the online shop too.

As long as you are reasonable and create a win win situation, you will generally find online stores receptive to negotiation. They want your business!

Remember to ask for a discount

For most people, asking for a discount is the hardest part. A lot of people shy away from possible confrontation or embarrassment rather than discuss a reduction in price or try and secure a better deal.

As long as you are polite and reasonable and can explain why you feel a reduction is justified, then, in my experience, you will actually be respected by the shop owner. After all they probably negotiate hard with their suppliers to secure the best deal for themselves.

The very worst thing that can happen is that they say “no”, but then they lose the business, which they don't want to happen.

So think of the money that you can save, just by asking! The more practice you have at negotiating with shops and suppliers, the more persuasive you will become and the more money you will save.