Money
5 ways to negotiate a better deal and save a stack of money
Prices keep going up, up, up, but don’t just accept it. Here’s how to fight for a better deal on insurance, utilities and services.
By Bron Maxabella
We all know people we’d call ‘born negotiators’. The ones who seem to be able to wheel and deal their way through life. However, most of us aren’t like that at all. Instead, we’re intimidated by the mere thought of approaching a supplier to ask for a better deal.
Fortunately, there are plenty of techniques we can learn that will help us get a better deal on our health insurance, reduce our mortgage repayments or save money on our car, utilities and other services.
As the saying goes: you don’t get what you deserve, you get what you can negotiate. Here are 5 tips for getting a better deal on insurance, utilities and services.
1. Know your options
Make a list of all of the insurances, utilities and services you use and what you’re currently paying. Then note down exactly what you’re getting for your money so it’s easy to compare like with like when you research what else is out there.
It’s definitely worth comparing the market. Companies often offer their best deals to new customers, leaving their long-time customers paying what’s known as a ‘loyalty tax’.
If you’ve been with your current supplier for a long time, chances are you’re going to save money by switching. If you’re keen to stay with your current supplier, knowing what’s being offered elsewhere can significantly improve your ability to negotiate a better deal.
Savings can generally be made in these areas, but have a think about other services you use, too:
- Private health insurance
- Home & contents insurance
- Car insurance
- Other insurance
- Mobile phone plan
- Internet supplier
- Electricity
- Gas
- Superannuation
- Mortgage
- Other loans
- Credit cards
- Home help like cleaners, gardeners, pool care
Top tip: When it comes to home help, ask around your neighbourhood to see who also uses the same services. You might be able to all use the same suppliers and negotiate a ‘bulk deal’. Home care suppliers save time and money when they don’t have to travel far between clients.
2. Use a comparison website
Comparison websites make shopping around for better deals super easy. You can compare offers on things like insurance, credit cards, home loans, car loans, utilities and more. Knowing exactly what’s out there will give you more confidence to negotiate a better deal with your current supplier. We like:
- Compare the Market
- iSelect
Top tip: Private health insurance premiums are set to increase on 1 April (this is generally true every year). Now is the time to jump online to see if you can find a better deal elsewhere. Remember to add the percentage increase your current insurance will rise on 1 April so you’re comparing like with like.
3. Make the call
Be ready to phone up your supplier to talk through the information you’ve gathered in your comparison search. You’ve done your homework and know what’s out there, so take a calm and friendly approach. Then stand firm when you’re asking for a discount.
Some tips for negotiating over the phone:
- Speak to the right person – the customer service representative who answers your call may not be the right person to offer you a better deal. Check in to make sure.
- Listen attentively – we can get so caught up in what we want to ask that it can be easy to forget to listen to what the other party has to say.
- Repeat back – to ensure you’re hearing the other party correctly, repeat back what they are saying from time to time. This will ensure you are both on the same page.
- Be specific – once you’ve agreed a new deal, ask your supplier to outline exactly what it is you will be receiving and when the new arrangement will start (hopefully immediately).
- Follow up – ask for a follow up email from your supplier outlining what they’ve agreed to offer you. That way you have it in writing and there’s no ambiguity.
Top tip: If you’re not getting what you want, go back to your comparison and start contacting alternative suppliers. Switching is easier than you think – for example, did you know that if you switch to a different private health insurance provider with the same (or lower) level of cover, you don’t have to serve a ‘waiting period’?
4. Bundle and save
Streamlining your services can help improve your negotiation leverage as your business is worth more overall to the supplier. It makes you an attractive, high-value customer with a proven payment history. Good bundles to put with one supplier might include:
- Communications – mobile phone(s), internet, entertainment
- Energy – electricity and gas
- Insurance – home, contents, personal, car, pet
- Home – cleaning, gardening, pool care
- Banking – savings, home loan, car loan, personal loan
Top tip: Don’t underestimate the savings you can make by cutting down on your energy consumption in the first place. Switch off lights, hang washing out instead of using the dryer, use the economy cycle on your appliances and turn down your heating. No negotiating required!
More tips: 17 things you can do right now to save big on your energy bill
5. Be prepared to change suppliers
If you simply can’t get your current supplier to reduce their price to your satisfaction, it’s time to go. Luckily, you’ve done all that research in preparation to negotiate a better deal, so you should know exactly where to move your business. Don’t forget to call up your proposed new supplier to negotiate an even better deal than the one they are advertising. At this point, you’ve certainly got nothing to lose and plenty of money to gain.
Top tip: Even when you change suppliers, don’t get complacent. Continue to check the market from time to time to make sure you’re still getting the best possible deal.
Feature image: iStock/Rockaa
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This article originally appeared on Your Money & Your Life and is updated and republished here with permission.
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