Save hundreds on your cable,
phone, Internet, insurance and other monthly service costs with a single phone
call.
By Claire Rock
Feel you’re paying too much out for your monthly bills? Haggling can help. Your cable company, insurance providers and other utility services may be open to persuasion. But refer to these tips to negotiate the best deals.
Before You Dial...
Do the research to support your request for a better rate:
• Check out the competition. Prepare for negotiations by researching online and calling local service providers. Having the details of a lower rate at your fingertips gives you more leverage when you ask for a price break. Bonus tip: Comparison sites, like BillShrink.com (which analyzes your past usage to find the best option) and LowerMyBills.com, can save you time by doing most of the legwork.
• Consider the timing. If you are locked into a service contract, the best time to negotiate is a couple of weeks before it expires, when the company is most eager to keep your business. If you’re in the middle of the contract, you don’t have the same leverage, and if you manage a reduction, most companies will try to get you to restart the clock on your contract. Avoid that if possible. You can always downgrade to a simpler plan to save money for the duration of your contract.
• Know your bottom line. Make sure you’re willing to leave the company before you issue an ultimatum. If you’re just fishing for a better rate, bluffing doesn’t always work. Get ready for your conversation by making a list of the services you receive, how much they cost and which ones you can’t live without. Then decide what you are willing to walk away from, whether it’s the entire service or just one feature.
• Be prepared. Have a copy of your latest bill on hand (so you can refer to your customer ID number and payment history) as well as any competitor advertisements (with pricing).
Make the Call
Use these proven tips and persuasive phrases to fine-tune your negotiations:
• Maintain a positive tone. Keeping the conversation respectful and friendly goes a long way. You want the representative to be on your side. Rudeness creates negative notes on your account rather than getting you what you want. Say: “I’ve been a very happy customer for __ years/months. As a loyal customer, I’d really like to continue to give you my business.”
• Say you can’t afford it. You’re most likely to get a positive response if you say you’re calling because of financial reasons. Without recounting a long sob story, get the point across that the current price is beyond your means. Say: “Unfortunately, times are tough for my family, and as much as we enjoy the service, we just can’t pay this much for it anymore. I hope you understand.”
• Ask for the right person. The salespeople and customer service agents who first answer your call usually aren’t able to give discounts. So save everyone some frustration by asking to speak to a manager. If you hit a wall there, ask to be transferred to the customer cancellation (or retention) department, where you are more likely get an offer to continue your service. Say: “I understand if you don’t have the ability to adjust the price. Could you please transfer me to your supervisor or to a department that might be able to assist me today?”
• Use open-ended questions. Asking company representatives what they can do for you puts the ball in their court to come up with a way to keep you, as opposed to asking yes-or-no questions, to which they can simply say no. Say: “_________ is offering the same service for just $___ per month. Even considering your termination fee, it looks like I’ll save more by switching. Can I speak with a manager to discuss my options?” Or say: “How can you help me continue my service at a price I can afford?”
• Don’t give up at the first no. A representative’s initial response probably will be negative, but that’s just your cue for the next move. Continue open-ended questioning, or push for the next level of representative if you don’t meet with success. If the offer you receive isn’t acceptable, you can issue an ultimatum (if you are truly willing to drop the service). Say: “I hate to do this, but I’m afraid I have no choice. I’m going to have to end my service. Can you please put me in touch with the cancellation [or retention] department?”
Haggle Everywhere
These negotiating tactics apply to just about any large purchase—including appliances, electronics, vacation packages and cars. Don’t be afraid to offer less than the list price.
Fend Off Frustration
Follow these stress-busting strategies to maintain your sanity and improve your chances of success:
• Schedule it. Working your way through a maze of transfers and wait times could take more than an hour, so call when you’re free of distractions. You don’t want to start over because you lost cell service in the car or you can’t hear over a barking dog.
• Retain records. Document the time of each call and the name and customer number of people you speak to. Verbal agreements on the phone can vanish, so you might need to reference the call to prove your case. For the same reason, always ask for a written confirmation of any promised offer.
• Try and try again. Don’t be dismayed if you don’t receive a discount offer right away. You might have better luck at a different time of day or later in the week with another representative.
By Claire Rock
Feel you’re paying too much out for your monthly bills? Haggling can help. Your cable company, insurance providers and other utility services may be open to persuasion. But refer to these tips to negotiate the best deals.
Before You Dial...
Do the research to support your request for a better rate:
• Check out the competition. Prepare for negotiations by researching online and calling local service providers. Having the details of a lower rate at your fingertips gives you more leverage when you ask for a price break. Bonus tip: Comparison sites, like BillShrink.com (which analyzes your past usage to find the best option) and LowerMyBills.com, can save you time by doing most of the legwork.
• Consider the timing. If you are locked into a service contract, the best time to negotiate is a couple of weeks before it expires, when the company is most eager to keep your business. If you’re in the middle of the contract, you don’t have the same leverage, and if you manage a reduction, most companies will try to get you to restart the clock on your contract. Avoid that if possible. You can always downgrade to a simpler plan to save money for the duration of your contract.
• Know your bottom line. Make sure you’re willing to leave the company before you issue an ultimatum. If you’re just fishing for a better rate, bluffing doesn’t always work. Get ready for your conversation by making a list of the services you receive, how much they cost and which ones you can’t live without. Then decide what you are willing to walk away from, whether it’s the entire service or just one feature.
• Be prepared. Have a copy of your latest bill on hand (so you can refer to your customer ID number and payment history) as well as any competitor advertisements (with pricing).
Make the Call
Use these proven tips and persuasive phrases to fine-tune your negotiations:
• Maintain a positive tone. Keeping the conversation respectful and friendly goes a long way. You want the representative to be on your side. Rudeness creates negative notes on your account rather than getting you what you want. Say: “I’ve been a very happy customer for __ years/months. As a loyal customer, I’d really like to continue to give you my business.”
• Say you can’t afford it. You’re most likely to get a positive response if you say you’re calling because of financial reasons. Without recounting a long sob story, get the point across that the current price is beyond your means. Say: “Unfortunately, times are tough for my family, and as much as we enjoy the service, we just can’t pay this much for it anymore. I hope you understand.”
• Ask for the right person. The salespeople and customer service agents who first answer your call usually aren’t able to give discounts. So save everyone some frustration by asking to speak to a manager. If you hit a wall there, ask to be transferred to the customer cancellation (or retention) department, where you are more likely get an offer to continue your service. Say: “I understand if you don’t have the ability to adjust the price. Could you please transfer me to your supervisor or to a department that might be able to assist me today?”
• Use open-ended questions. Asking company representatives what they can do for you puts the ball in their court to come up with a way to keep you, as opposed to asking yes-or-no questions, to which they can simply say no. Say: “_________ is offering the same service for just $___ per month. Even considering your termination fee, it looks like I’ll save more by switching. Can I speak with a manager to discuss my options?” Or say: “How can you help me continue my service at a price I can afford?”
• Don’t give up at the first no. A representative’s initial response probably will be negative, but that’s just your cue for the next move. Continue open-ended questioning, or push for the next level of representative if you don’t meet with success. If the offer you receive isn’t acceptable, you can issue an ultimatum (if you are truly willing to drop the service). Say: “I hate to do this, but I’m afraid I have no choice. I’m going to have to end my service. Can you please put me in touch with the cancellation [or retention] department?”
Haggle Everywhere
These negotiating tactics apply to just about any large purchase—including appliances, electronics, vacation packages and cars. Don’t be afraid to offer less than the list price.
Fend Off Frustration
Follow these stress-busting strategies to maintain your sanity and improve your chances of success:
• Schedule it. Working your way through a maze of transfers and wait times could take more than an hour, so call when you’re free of distractions. You don’t want to start over because you lost cell service in the car or you can’t hear over a barking dog.
• Retain records. Document the time of each call and the name and customer number of people you speak to. Verbal agreements on the phone can vanish, so you might need to reference the call to prove your case. For the same reason, always ask for a written confirmation of any promised offer.
• Try and try again. Don’t be dismayed if you don’t receive a discount offer right away. You might have better luck at a different time of day or later in the week with another representative.
For these and more tips from a Naperville Financial Services advisor, contact Susan S. Lewis today.
Adapted from the April 22, 2011 issue of All You. © 2011 Time Inc. All rights reserved.
Adapted from the April 22, 2011 issue of All You. © 2011 Time Inc. All rights reserved.
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