A nice feature of this is often instantly salesmen are hypnotized to close the deal. Their eyes get stuck on the money if you count it in front of them before offering. Understand you can manipulate salesmen far more effectively than they manipulate customers if you want to. People that have strong closing experience in retail, fundraising and such, can often negotiate large purchases so close to the margin lines that the merchant actually takes a loss on it (thinking it’ll be counterbalanced by future purchases) or earns practically no profit on it. This is, obviously, optimal for the purchasing power of the consumer. Let the businessman retire making profits on the person behind you in line.

When negotiating for cashmere sweaters in Europe I proposed the merchant and I go into business together and I buy sweaters 10 at a time or better yet 100 at a time for sale in the US. What kind of a price could we get to? We went back and forth a bit and agreed on around half the retail price in his store. I told him I’d certainly keep it in mind but for the moment I’d just take 2. Guess what, half-price. Apparently I’m not the only one that’s ever thought of doing this.

A friend of mine sells expensive imported italian furniture in the US. An executive of a large hotel approached her at the business and explained they were interested in 100 nightstands or perhaps 100 coffeetables, perhaps both. What kind of a price range would they be in, as obviously they didn’t want to pay retail. She and the owners of the furniture company figured they’d lucked out, after all, the hotel could have just bought the furniture directly from the italian manufacturer for the lowest possible price per item, right? So patting themselves on the back for their luck and with as much of an attempt to prevent blowing the deal, they offered a price just a few % points above their cost. The hotel executive said great, that’s just the range we were thinking about, of course I’d need one of each to take with me to the presentation where we decide if these are what we’re going to go with. They sold him those 2 pieces at the pro-rated cost of the order of 100. She asked me why I thought 2 weeks later she hadn’t heard from him and the sale on 100 hadn’t gone through. I felt it was obvious the night stand and coffee table were sitting in the executives home… at 55% of their retail price in the furniture store. Purchased practically at cost.

You go into a TV store and say what’s the best price you can do on this after looking at sticker price, they’ll shave 2-5% anywhere, even major chain stores. Let’s say this tv costs x amount. And you say “how much less will you charge me if I pay in cash? I know if I put it on a credit card the merchant would pay up to 3% in fees, so we can start with that as a discount range…” I got to a discount of approx. 35% below bestbuy price, yes it was new, no it wasn’t a show model or factory 2nd.

A nice way to buy a used car is to already know what you want and the fair price for it. when you see one and you know it’s at a fair price offer 10-15% less for it, offer at least a few K less. Tell them if they agree you’ll buy it today, paid in full in the next few hours. They’ll give you 12% off. You may have to be willing to walk away, come back 6 hours later, re-offer a few hundred more. If not, be prepared to walk away and come back the next day. But I think often the walk away gets you to an optimum price when used twice buying a used car.

To the person in favor of 0% APR on a car loan, they only give those for new cars right? if so depreciation counterbalances gains.

If I’m offered 0% APR on a car loan, you better believe I’m not paying that off in cash. I’ll set up automated payments of whatever it needs to be, but I’m collecting the 4.5+% interest in and ING account.

For example. #1, Pay off all your debts starting with the high interest ones. I understand the mathmatical logic of knocking down the higher interest rates first, but it doesn’t necessarilly allow personal success early and often.

I’d say Pay off all debts starting with the smallest. This gives you early success, and allows you to roll over the payment from the first debt into the next. Sure, you’ll be paying a little more interest, but as you move down the list, rolling each paid-off debt payment into the next debt, you’ll build a ton of personal satisfaction.

And on #8, Invest all windfalls: add the personal touch: Invest all windfalls after you take your wife to dinner (it’ll go a long way, especially if she’s not a math geek like you or me)!

Amen to buying used cars.