Ask Nicely and Pay Less for Almost Everything

A serious customer with cash to spend can really call the shots these days on everything from electronics to housing to a root canal. Really.

In fact, 90% of customers who negotiated with a salesperson on everything from the price of furniture to medical care got a price break on at least one purchase over a three-year period, according to a 2007 Consumer Reports survey. The most successful of the lot reported saving $50 or more.

Another recent study the magazine conducted found that more than 70% of people selling their home who negotiated the standard 6% seller's fee got their real estate agent to accept between 3% and 4%.

Even medical costs are fair game, according to SmartMoney. The magazine reports that many doctors are willing to lower fees by 20% to 50% for patients whose insurance offers only partial coverage, as well as for those with no insurance at all. Paying cash up front is one way to cut your costs. SmartMoney's example: "Say your insurer covers 80% of a $650 root canal (or $520). Negotiate a $450 cash fee before filing the claim, and you've cut your out-of-pocket costs by $40. An uninsured consumer could save $200."

In other words, it really does pay to ask.

Prepare to Make Your Case

Unless it comes naturally to you, haggling is a strategy best saved for big-ticket purchases. That way, you have time to do your research (a must) and will save some serious coin for your efforts. Here are a few rules of thumb for negotiating a better price on just about anything.

Shop before you shop: You won't know whether you're getting a real bargain or a dud deal unless you have some pricing history for comparison. Go online and find out what the going rate is for the item you want. Then you can use your retail recon to make merchants play good cop/bad cop. Flash your cash and a competitor's lower advertised price (you'll need physical evidence), and many stores will match the price. Don't get too cocky, though. Most will honor coupons or sale prices only if they have the exact item in stock.

Know when to ask: Take your cue from the automobile industry, where wheeling and dealing is most prevalent right before sales milestones, such as the end of the quarter, end of the season (particularly for seasonal items like patio furniture and Christmas ornaments), and end of the fiscal year. Getting more granular, you'll get better results by visiting the store when foot traffic is at its lowest -- during the middle of a weekday, for example.

Know whom to speak to: Some stores have price-match policies -- which is why you want to come armed with a competitors' deals if possible. Best Buy, for example, will match a local competitor's price on the spot if the item is the same make and model. Same with Staples. Sears Holdings' Sears stores will match the price on some items and give you an additional 10% discount. The catch with most of these offers is that the "competitor" must be local -- many retailers will not match the price of an item found on the Internet.

Move up the chain of command: Some retailers leave discounting up to the employees' discretion, typically at stores in which employees earn a commission. If the first person you talk to won't budge, ask (politely!) whether there is someone else, perhaps a department or store manager, who may be able to make the call. Don't limit your line of questioning to big multi-location retail chains. Mom-and-pop stores are often willing to meet or beat a big-box retailer's advertised price or provide free add-ons when presented with firm evidence and a ready purchaser.

Show that you mean business, but always be nice: A polite way to ask for a discount is to say, for example, "Is this the best price available?" If, after all else, the answer is "yes," you must be willing to walk away -- or at least act like it. But don't storm away in a huff or start your negotiation from an adversarial position. For example, instead of saying "This is way overpriced!" say "I really like this item, but this is more than I was planning to spend." Remember, you and the retailer both have something to gain in this transaction.

Phone a friend: If you need time to waffle -- and stall the sale in hopes of getting the best price possible -- tell the salesperson that you want to get a second opinion from your spouse/partner/buddy/mother-in-law. The idea of seeing a near-sale walking out the door may inspire the salesperson to trot out the absolute best price possible.

Fool.com consumer-finance columnist and confessed shopaholic Dayana Yochim is lobbying for "shopping" to be recognized as an official Olympic sport. She would like to nominate herself as team captain. She doesn't own any of the stocks mentioned here. Best Buy is an Inside Value and Stock Advisor pick, and the Fool owns shares, too. Staples is another Stock Advisor selection, and Sears Holdings is also an Inside Value recommendation. The Fool's disclosure policy shops the discount aisles till it drops.