The Simplest Way to Save Money: ASK!

About a week ago, my wife called our local heating/cooling/plumbing service company to send someone to our house to check out the problem we were having with our water heater. Naturally, it was not good news (is it ever?).

The plumber informed us that we needed a new water heater. After going over our options, on both water heaters and warranties, we found that the bill would come to $1,933. Naturally, the first thing both my wife and I wanted to know was: “What can you do for us?”

The plumber gave us the name of the right person to speak to and the next morning I got on the phone with the office manager. By the time I got off the phone I had obtained a discount of almost $350. All because I asked!

The point of this story is that most people just accept any price thrown at them. They’re either too afraid or ashamed to ask. There’s no shame in saving money. Besides, what’s the worst thing that could have happened to me when I asked for a discount? They could have said “No.” So what, I’m still no worse off than I was before.

They don’t put you in jail for asking for a discount, and also no one is putting a gun to the seller’s head to give one to you. I’m amazed at how much money both consumers and business people leave on the table.

Call all the companies you do business with and find out if there are any special deals going on. Call your phone company, cell phone company, utility company and find out if there are ways to lower your bills. And don’t forget to check your bills thoroughly each month; companies make mistakes. In the last four months, I found over $200 worth of mistakes on my cell phone bills. Better off in my pocket than theirs.

Now, let’s look at this from the salesperson’s or business owner’s side. As a business owner, I always have prospective clients asking for discounts, either on my fee or on my products (audios, videos, books). My policy is this: On my fee I never discount unless someone is willing to book me for multiple engagements. On products the policy is the same: bulk orders get the discounts.

This does force me to say "no" to many prospective clients, but remember it is the client’s responsibility to ask for a discount. They want to get the most they can for their money. However, as a salesperson or business owner, it is not your responsibility to cave in.

Once you start dropping your price too quickly and easily, be prepared to always drop your price. There’s a great old expression from my days as a salesman in The Garment Center in New York City: “The way you break them in, is the way they’re always going to be.”

Don’t be so quick to drop your price. Usually, when a client asks for a discount, they’re testing you to see how much they can get away with. You’d be surprised how many people back down when you say, “No.”

Quick note: I just asked for and received my first ever senior citizen discount at the movies (I turned 55 in October). On second thought, I should have started asking when I was 40. Most of the people working at movie ticket booths are teenagers and to them everyone 40 and above looks 60 anyhow.