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4.0 WHAT PRICE TO OFFER; NEGOTIATING, BARGAINING AND HAGGLING

Most experts say that you should get the seller to make an offer first. He or she might suggest a price that is much lower than you had even considered. This happens quite often. So when you see something without a price tag, get the seller to state how much he or she wants. Then you will know your starting point.

When you decide to bargain, what price do you offer? You do not want to insult the seller, but at the same time you do not want to be taken.

If you make a low offer in the beginning and the seller keeps bargaining, you have already won part of the game because you are starting from a low point.

I saw a travel program which gave this advice. In the bazaar in Istanbul the rule of thumb is offer 1/2 and settle on 3/4 of the asking price. However, I have my doubts about this advice. In a foreign country you can be sure the seller will jack up the price for a tourist. I suggest you offer 1/3 and settle on 1/2 to 2/3 of the asking price.

Doing your homework also applies to cars. If you are buying a new car, you should know exactly what the dealer paid for that car and what the bottom line sale price is for the dealer. You can find this out easily by buying a current copy of Edmund's Buyer's Decision Guides or visit their web site at:

http://www.edmunds.com

Naturally the more you know about the going price of a line of products, the better you will be able to bargain. Antique dealers, for example, can usually get a good deal because they know the current price of an odd thing like a silver candle stick.

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