Here’s how I saved 28% on renewing my lease for my office space (read: UPS box).
I’ve been reading up on negotiation lately because it’s something that interests me (I’m weird like that). Anyhow, today I thought I’d put a little bit of that into practice since my UPS box was up for renewal.
I used to think that the only stuff you could really negotiate on was stuff you bought second hand. I mean, who walks into a store and tries to talk the cashier down on the price? It seems kind of absurd……. or does it?
So, I thought I’d do a little test. I’ve read stories about people being able to negotiate all kinds of things at retail establishments, and if I’m not mistaken there’s even a TV show about the very topic. So, I thought I’d give it a go in my own life and see how it worked out for me.
A few tips that I used to save myself some cash are:
1. Shop Local.
Smaller shops are MUCH more inclined to be able to negotiate simply because you’re significantly more likely to be talking to someone that is a decision maker. If you try and walk into your local drug store, chances are you’re going to get weird looks from the cashier behind the counter if you try and talk your way down on price , although that’s not always the case! I used to get employee discounts from people all the time, especially if they work on commission.
The key is to be talking to someone that has the ability to do something for you… not just a button pusher. So, in my UPS box story, I happened to be talking to a manager. A side note, the UPS stores around me are all independently owned and most of them are owner operated, so chances are good you’re talking to an owner.
2. Terms ARE Adjustable
The first thing I did to get myself some savings was extend my term. It’s advantageous to the UPS store, since they don’t have to worry about a box sitting empty if I’m locked in for a year or longer. So, what I did was change from a 3 month term to a full year and then asked for an additional 3 months free for extending my terms.
I was currently paying $18 a month for the box in 3 month increments. When I switched to a year long lease the price dropped to $16 per month… and with the 3 free months I got, my monthly cost dropped to $13 per month.
3. Use Discount Opportunities
Next I asked the lady if they offered student discounts. Unfortunately they didn’t, but she did mention that they do offer a discount for AAA members… so had I been a AAA member I would have saved some more money. Always ask if the establishment offers some sort of discount method. I’ve been out of school for (I’m not telling) years now and I STILL have my student ID and use it regularly for movies and other things. Call me cheap, I care not… haha.
4. Cash Is King
So she rings up the tally and it’s just shy of $200 bucks for a 15 month lease on my box… At this point, I made a face and asked if she’d work me a deal for cash, otherwise I was gonna use my charge card and get some airline points.
See, retailers pay fees when you use your credit cards. A lot of times smaller retailers, mom and pop shops especially, pay much higher fees than larger retailers. This means that for a $200 transaction, they’re already taking a hit on that dollar amount for merchant account fees. Furthermore, many times a merchant account holder will have to keep a certain % of all their purchases in reserves in case of charge backs and refunds. So it actually hinders their cash-flow abilities when they accept credit cards.
Cash solves that problem for them (and you). The vendor gets their money right now, and you can often times strike a deal and get some kind of discount.
In my case, the manager offered me 10% off for paying with cash. Hot damn, I just saved some more!
All in all, I ended up saving 28% for something that I NEED to have, that I would have gladly paid the full $200 for. But why pay top dollar if you don’t have to?
The moral of the story is this, folks. If you know some basic techniques like what I just laid out for you above, and you just ASK… you can easily cut dollars off your monthly expenses.
And if it doesn’t work, then by all means, get those airline miles and cash in that way (that’s a whole other blog post).