Friday, January 30, 2009

Drug Store Shopping This Week - 1/25

I hit my normal 3 stores this week and still need to go back to CVS tomorrow.

CVS
2 Gillette Shampoos - 4.99 ea
2 Energizer watch batteries - $11.98 together
2 Atlanta Journal Constitution newspapers - $2.00 ea.
1 box of BandAids on 75% off clearance - $1.00
1 Timex Alarm Clock for my husband - $19.99
1 caramel - $0.33

- 10/50
- 2 $2/1 Gillette
- 1 $1/1 Energizer
- $17 ECBs

= $15.49 OOP Earned $6.00 in ECBs, Saved $35.00

After careful scrutiny of my receipt, I learned that I am 2 cents short of getting ECBs for the Energizer batteries - so I will be making another trip to CVS tomorrow - good thing I actually do need a few more watch batteries. :)



Walgreen's
1 Colgate Total - $2.99
1 Colgate Toothbrush - $2.99
8 Reese's Whipps - $.89 ea

- 4 $1/2 Reese's
- Reese's BOGO WAGS ad
- 1 $1/1 Colgate Total

= $4.97 OOP - nothing earned - I needed the Colgate for the Travel Bag deal.


Rite Aid - easy one here.
1 Garnier Fructis Body & Volume Shampoo or Conditioner - $2.99

-$1 Garnier Fructis Hair Care

= $2.17 OOP, Earned $2.99 SCR # 71 - Thus made $1.00 PROFIT


Tuesday’s Negotiating Tip…

Scott says…

Today’s tip is a guest blog on my friend Jeff’s blog My Supercharged Life. He’s on vacation this week. Jeff’s blog is a favorite of mine and I read it daily. He’s got some great ideas, especially on small business and finance.

This particular blog is a primer on negotiating for consumers. So if you’ve never negotiated anything or only a few things, this is a great post. Take a minute and check out my guest blog while Jeff suns himself in Cozumel!

Monday, January 26, 2009

Monday's Negotiating Tip…

Scott says…

The rule is: ignore the rules. I’m one of these people that thinks that rules are made to be broken or at least bent until they squeak. My wife hates this about me! So many rules we come up against are just arbitrary or put in our way to solve some other little problem that came up years ago. My policy is that the minute you hear the word RULE, POLICY, or PROCEDURE, challenge it.

A hotel that I use for traveling charged me a ten dollar fee for parking my car in their uncovered parking lot outside. I told the person at the counter that I don’t think it is fair for me to be charged this fee since I can park for free across the street and the lot is neither covered or protected.

“Sorry, sir, but that is our policy,” replied the clerk.
“Who’s policy?”
“The Hotel’s policy,” she said.
I leaned over and spoke to the hotel wall with a giggle and said “Mr. Hotel, I’d like to talk to you about your policy!”
The clerk laughed and said “No, it is the manager’s policy!”
“Oh, ok. Can I speak to the manager?” I said.
“Well, he is out right now.”
“Fine, just have him call my room when he gets in, please,” I stated firmly and walked away before she could make an excuse not to have him call.

The manager called me and told me how the fee came about. Mainly it is to discourage people from bringing their cars and to use the transit system which leaves them less liable for damage to guests’ cars. Apparently the cars are broken into rather frequently and they have had to pay out some money for damages. I told him that my insurance would cover the cost of a break in and would he kindly put it in my file not to charge me for parking. He agreed.

A few things happened here. The most important is that I got to the root cause of why the policy was made and I demonstrated that it didn’t apply to my case. Secondly, I used humor with the clerk along with firmness to get her attention and to show that I was serious about questioning the policy. The third is that I didn’t take the policy at face value.

Question policies and demonstrate that it doesn’t apply to you and you’ll save money!

Have a question about negotiating? Send it to us at scott@rainydayfinances.com!

Saturday, January 24, 2009

Saturday's Negotiating Tip…

Scott says…

“That’s our policy!” I love this one. When negotiating with stores you’ll hear this one a lot and for most of us it stops us in our tracks. Who are we to question THEIR policy? Policy sounds a lot like law, doesn’t it. Let’s go to the library…

At the library I was found guilty of damaging a book with water. Actually the culprit was my tiny daughter who dumped her water bottle all over Curious George. The judge at the public library, who is properly called a Media Specialist, informed me that I would have to pay the replacement cost of the book at THEIR rate. I opened the cover and showed her that the actual cost of the book was several dollars lower and that since the book was used and it was my fault that I would gladly pay the book’s cover price. “Our POLICY is that you pay replacement cost!” Ok, let’s negotiate.

Librarians that I’ve met over the years are firm and fast rule keepers. Since my negotiating was giving her heartburn I decided to stroke her ego a little bit by going back to the damage at hand. I asked her was the book really damaged so badly that they couldn’t use it? I got a lengthy lecture on what happens when a book gets water damaged pages, learned about the spine of the book, about mold and mildew and many other things. I told her I was amazed at how much she knew about books! With this information I then gently challenged her as to whether or not the book was useable in its condition to which she replied that they could use it but it would take some work. When I asked her how much the work would cost she replied “we don’t have a policy for repairing books”. Ok, another dead end.

So we went back to negotiating about the cost and I decided to use another tactic, the stall tactic. I had plenty of time as my daughter was reading in the children’s book section, but the Librarian had a line forming behind me. We laboriously discussed the replacement cost. I even told her that if I was responsible for replacing it that I’d just go get them a replacement book and pay a lot less. “Our policy won’t allow that.” Rats.

Ok, by now I’m getting a little steamed, but I’m going to keep my cool. This is a $3.00 negotiation with a Librarian, but a great exercise, so I’m going to continue. The next tactic I pulled out of my bag was the “fairness” tactic. I approached her with the statement that “I am guilty of damaging the book but it is not fair to financially penalize me for the infraction more than the value of a book to replace it. You wouldn’t pay more than a book was worth, would you?” Jackpot! She looked at me with a very puzzled look. “Certainly, I would never do that.” She then agreed to accept my payment of the books cover price which saved me $2.90. We then argued about my right to take the book home since I just paid for it. I told her it was MY POLICY to take what I pay for!

Now, you are going to say that this was stupid, right? Why beat up a librarian for $2.90? There are several reasons that I did this. The first is to make it known to the library that their policy is not quite fair. The second is that I don’t like people waving policies in my face just to make their lives simple. The third is that I need the practice. You can see from the description that I used several negotiation tactics and even changed my strategy. Believe it or not, doing this with the librarian is no different than doing this with a million dollar contract, which I do daily. My policy is to practice, practice, practice and you’ll save money, too!

Friday, January 23, 2009

Friday's Negotiating Tip…

Scott says…

What time is it? Time to negotiate! The factor of time can really influence your deal. Always be aware of your time constraints and those of the other party.

Let’s go buy a car. You really don’t need to close a deal on a new car for several weeks. The new car dealer knows that if he doesn’t close you in three days or less that statistically he/she won’t sell you a car. So what time of the week do you go to the dealer? Monday? Saturday? It will depend on the dealer but often you see the sales advertisements coming out on Friday, so Friday is often a good day.

Thus, if I go to negotiate for a new car, I’m likely to go Friday and to go very late in the day. If I know what I want, I’m going at 30 minutes before closing time. The dealer doesn’t want to be stuck at the office late on a Friday night and 30 minutes gives them just enough time to work you a deal. As the clock ticks, the pressure is on them to close the sale. Be sure to tell them that you have all day Saturday to look at car dealerships if you don’t buy one today!

Time can be your enemy as well. If you are in a hurry to buy something and the salesperson figures this out, you won’t get a price break. Instead, act is if you have plenty of time. Don’t act like you are rushed and be sure to avoid any high-pressure closes like “if I can get that in gray for you will you take delivery tomorrow?”

Time is money. Be aware of time, because the money you save could be used to buy that next new car!

Thursday, January 22, 2009

Thursday's Negotiating Tip…

Scott says…

Loosing is hard on me. It’s hard on everyone. But I no longer look at a “failed” negotiation as loosing. Let’s start with definitions. A “failed” or “incomplete” negotiation as I prefer to call it is one in which neither buyer or seller (both parties) were able to see their needs met. This is also called a lose/lose negotiation.

I see a lose/lose situation as my fault, not the other parties. It is a chance for me not to feel sorry for myself or the failed negotiation, but as a opportunity for me to hone my skills and discover what it was about my preparation, strategy, tactics or goals/objectives that were not properly configured for the deal.

Someone in one of my classes the other day mentioned that they had carried cash to a car purchase and were trying to get the sale price down from $6,000 by $300 through displaying the lower amount in hard cash to the seller. He was disappointed that he had failed. In this situation I would not have felt bad about the deal but I would have spent time analyzing what I had done wrong. My suggestion to my friend is that maybe he didn’t take the time to understand the needs of the seller. Maybe he had a bill to pay or a down payment to make on another car that was precisely $6,000. Or maybe the seller didn’t really need to sell the car and could effectively use the “walk away” tactic. Still another option is that the car had great sentimental value and the seller mentally could just not part with it.

What probably went wrong is that the buyer did not take time to build some rapport with the seller. Just a little “small” talk and some pointed questions might have gotten the other party to demonstrate what it was about the car that would keep him/her from selling at the lower price.

Still, if you get to the end and it looks like the deal won’t happen, try the “hat and the door” tactic. I got this one from Zig Ziglar and it is fantastic. When you both agree the deal is not going to happen and you turn to leave (putting on your hat and reaching for the door) just stop and turn back to the seller. Ask them “I realize that we couldn’t come to an agreement, but I’m just curious. What is it about the car or the price that made you hold your ground so firmly?” More often that not the seller will tell you specifically why they wouldn’t come down on price! It is amazing how well it works. Often, when the negotiation is over the seller will drop their guard. “Well, this car is the one I used to date my wife and I asked her to marry me in it!” “Oh, well why didn’t you say so! Didn’t I tell you that I wanted to preserve this car and restore it to its original condition? This car will live forever! I just needed the $300 discount to make sure I had some extra money left over to get started on the minor repairs.”

Take the time to build rapport, and never feel like a negotiation is a loss. Every negotiation teaches you something and you’ll save money over time.

Wednesday, January 21, 2009

Wednesday's Negotiating Tip…

Scott says…

Negotiating isn’t fighting. I really don’t like negotiating books and trainers that use the term adversary, opponent or even combatant as I read in one book recently. Many will even use military terms like battle, war and “shooting the other guy.” While the person or team on the other side of the table might be hostile, looking at the negotiation as a fight for “my needs” or as a battle is an equation for losing. You may win today, but you almost always loose in the long run.

I prefer Gerard I. Nierenberg’s style of looking at a negotiation as a collaboration. You can order his book The Art Of Negation in our bookstore. He says it is two parties trying to satisfy their needs in a way that benefits both parties. Once a negotiation turns adversarial emotions become involved and things get out of control. Should you feel that things have become adversarial, stop and try to understand why the other party is upset and why you are upset. Put yourself in their shoes and think how they would feel in the situation. Then try to correct it.

My favorite way to get things to simmer down is taking a break. I’ll make an excuse to leave the room and will go get a drink of water or pretend to talk on the phone. This gives me time to reflect on the discussions and to think about the other party. When I’ve collected my emotions I’ll go back to the table, often with my purpose and objectives clearly put back in my mind.

Many times I find that the other party is not frustrated with what is going on during the negotiation, but at something entirely unrelated. I had one negotiation get so out of control that both sides were calling each other names. We took a break and when I was walking out of the room the other team leader blew his nose and took a pill. I asked him if he had a cold and he said he should be in bed and that he’s had the flu for several days. I postponed the negotiation for a week and when he felt better, we closed the deal.

Don’t fight ‘em, delight ‘em. Be alert to anger and frustration as the break you take can save you money.