Everything is negotiable - before you use your credit card or hand out cash - ask for a discount. If you forget anything you read here just remember this - You can negotiate and ask for a discount for everything you buy. Everything.

Doesn't mean you are getting a discount, but you can still always ask. Here are a few tips:

  • Leave your ego at the door - in asking for discounts at retail stores, or negotiating a raise from your boss - leave your shame at home. This is money, and in every transaction - it's a zero sum game. Ask for what you want with confidence, and back it up with objective reasons. "I bring value to your company, and I was the top salesman last year - I should be compensated accordingly"; "I'll buy three pairs of shoes if you are willing to give me 20% off." Don't just ask - do your homework, stay objective.

  • Establish a rapport - So much easier to ask for what you want, and 100x easier for the person with authority to give you want you want if they like you. Make a friend, tell them a story, listen to theirs. I remember when I bought a sofa while in grad school, I started chatting up this middle-aged lady who was the store manager (major American furniture retail store). The sofa was $899, already a great price. I told her I was in school and paying for it myself, she shared how her niece is also in grad school and she knows what I'm gong through. When it was time to pay, I asked for a discount. She smiled and declined. I asked again, pleading her that it will really help me out with the expenses and all. She said - " you know what, I'm allowed to give up to 30% for defective showroom sofas. Let's just say this one is defective."

  • Know the company policy - Every major retailer has a price match policy - bring them proof that a competitor is selling the same product for a lower price and they will match it. Some companies even match online prices. If they refuse, ask for a manager for assistance. Before you buy anything online, check for coupons and promotion codes. It takes literally 1 minute. Hotels will refund your money if the room stinks (or give you some future credit). Retailers like Macy's, Bloomingdales and Nordstroms will give you discount when buying more than 2-3 items. Almost all retailers give you student discounts (apple, j crew). Ask for a discount.

  • You win a negotiation in the preparation phase - never go unprepared. Know your bottom line before you walk in, and stick to it. Asking for a straight discount at a supermarket is silly, but you could prepare a coupon strategy and apply it at the point of sale - stick to the plan and you will be successful. If you are negotiating with a person - know in advance if it's better for you to give the first price or wait for them. My general rule: if the end price has an objective value that is easy to determine, it's better to set the first number. Why? it's better to anchor low because both parties know what range the final price will be. For example - buying a car in America. Final price will usually be somewhere below the invoice and the MSRP - so anchor low and give the first number. If you are negotiating with an artist to commission a portrait - let him come up with the price. It might be lower than your number, so don't shoot yourself in the foot.

My favorite negotiation tactics:

  • Question the price - "how did you arrive to that figure?" Always a winner. You ask for an objective reason for their price, so you can poke holes in the reasons for the price. Very effective.

  • Divide and conquer - if there are multiple things to negotiate at once, do them one at a time. Sticking with the car purchase for a second - don't tell the dealer you have a trade-in when you walk in. They will pull something like this on you: "look, I just spoke with the manager. He is willing to come down on the new car price, but he can't give you more than $2,000 on your trade-in." Don't let them do that, negotiate each transaction separately. Note that if you are in the opposite position, you want to ask questions early, so you can pull the same shit on them ("what are you hoping to achieve today?")

  • Know the leverage - who loses more if the negotiations break down? This is usually the most important question in every deal. Do you think your boss gives a shit if you leave your telemarketing job if you are middle of the pact salesman? But what if you are an asset? Is there a time when you have more leverage? For example - lets say you are a lowly manager for a retail store (a college job). Aside from your knowledge of the system (acquired through time only), you bring nothing special to the table. BUT - how valuable are you 2 weeks before Christmas? Will your branch survive without your 55 hours/week time commitment? Will it do worse? How long will it take corporate to replace you? Sidenote - if you are easily replaceable - time to find another career, but this is an issue to a later post.

  • Walk away - no need to for extra words here. Shake their hands, smile, and say thank you for your times - and walk away.

  • Show me the money - don't underestimate the power of cash. Show the other person the amount you are talking about, it has profound effects on people. For example, I bought my first car when I was 19, an old Toyota. It was an excellent condition, I was buying it from an old lady while her son (an accountant) was handling the negotiation. I offered half of the asking price. He laughed. I pulled out cash (in 20s, $4000 total), which looked like a large stack of money. His eyes lid up, he probably expected a check. I put the money in his hands and said: "keep it and let me have the car, this is literally all I have." I sold it 2 years later for $5,500.

  • Get a commitment / put them in a corner - condition your demand with an event. If you are negotiating a salary with a new company and they are playing hardball, condition the salary with performance (days worked a week, sales quota, etc...). If you are negotiating a lease agreement with the landlord - ask if they are willing to give you 5% rent discount if you rent the place TODAY (the word today is so freaking powerful in negotiation. learn to use it!) and give him 3 months advance rent (works magic). You basically give them a reason to make a concession by giving them a victory (what they don't know, is that you are wiling to give that concession anyway).

This shit is important. All of this comes up in everyday life - not just in business or buying stuff. School, family, broads - leverage, power, walking away - these are all TRP concepts that you have to master in order to get to the next level. Good luck