Frugal Tip: Bargaining Effectively for Lower Rates

The following is a guest post written by Nicole Wiseberg of the blog Nicole’s Nickels, where you can find the best Internet money-makers and money-savers from coupons, free samples and great deals to surveys, mystery shopping and online offers.  Get her on Twitter @NicolesNickels.

I spend my days practicing the art of negotiation as a lawyer.  I can’t just stop negotiating as soon as I leave the office, it’s not that easy! Instead, I negotiate with the various consumer products and services I receive in an effort to get lower rates and more services and goods for the money I pay.

I do this by doing my homework.  You’ll need to research the services offered by other companies and the rates they charge for these services.  I concentrate mainly on finding the specials other companies offer to entice new subscribers as these are the lowest rates out there.  You’ll find great information being mailed to you, as well as on the Internet and through word of mouth from neighbors, family, and friends.

A good example of this is your telephone service.  I have been with the same company for the six (6) years that I have lived in Florida but call them every six (6) months or so to renegotiate my rate.  Recently I found a competitor phone company charging approximately $25 less per month for the particular bundle of services I receive.  Armed with this knowledge, I called my phone company.  My pitch goes something like this:

“Good evening.  My name is Nicole Wiseberg and if you review my account, I believe you’ll find that I have been a loyal customer of yours since 2003.  I am hoping you can help me.  I found an offer from (your competitor company) that states X, Y and Z.  I have been loyal to your company for many years but this incentive may be too good for me to resist.  I would hate to cancel my service with you.  Can you match this offer?”

If you get a customer service representative that isn’t very sympathetic or sounds like they are not willing to help, do not be afraid to thank them and hang up.  Then call back.

I have been successful in negotiating better deals on my home telephone (local and long distance), cable, internet, and extermination services, saving me a lot of money throughout the years.  If a better rate has come along since you signed up for your service, the company will not call or write to let you know, it’s up to you to do the research, know the prices and the specials, and negotiate until you receive the lowest price you can find!

Remember, the economy is tough for everyone and these companies do value your loyalty.  It’s up to you to make them earn it.

Editor’s Note: This great money-saving strategy goes along with our advice on how to stop paying annual fees on your credit cards and 4 Ways to Get the Customer Service You Deserve (guest post at Mommy Brain Reports). 

Check out Frugal Friday at Life as Mom and Thrifty Thursdays at Amanda’s Cookin for more great tips. Photo by FaceMePLS.

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