The Secret to Saving Money: Ask

A few years ago I was checking into a hotel and heard the person checking in next to me ask if he could get a free room upgrade. After a brief check of what was available, the man was given a free upgrade to a suite. I was amazed at the ease of this exchange.

I have not checked into a hotel since without kindly asking if there were any free upgrades available. It seems that more often than not, there is some type of upgrade given, whether it is the type of room, location of the room or a hotel amenity.

Price negotiating is too often associated with swap meets and garage sales. Fortunately, discounts can be had nearly everywhere just by asking.

Areas like credit card interest rates, cable bills, car insurance, department store purchases, travel and auto repairs are just a few areas where there is generally room to lower the price.

Next time you are paying your cable, phone, or internet service bills, call the customer service number listed on the invoice and ask if there is any way you can lower the bill. Ask about any fees or services that have been charged to see if there is room to eliminate or lower them. Are there any discounts for loyal customers or promotions that could be applied? It’s even better if they know you are thinking about moving to another service provider, unless they can sweeten the deal to make you stay.

In department stores, if you find defects or damage that wouldn’t deter you from owning an item, ask the manager for a discount on it. Most managers will have the discretion to lower a specific price up to 15%.

Normally when we purchase a big ticket item, we quit pricing that item. It is important to understand the return and price match policies of the store and continue to price the identical item for the remainder of the return policy deadline to check for lower prices. Be sure to not just check other stores but also continue to check the store where the item was purchased.

If you find the item for a lower price, ask the manager if they could refund the difference in price. If it seems like a no go, offer to take store credit rather than cash. This way you both win. If the store won’t refund the difference, and the difference would be worth it, return the item and purchase the item at the retailer with the lower price.

Ask if there are any discounts available that you may not be aware of. I did this at a shoe store the other day and received a 10% discount because I was a member of a travel club. Ask about any loyalty or club cards, coupons, or ads that could be applied to lower the cost.

Understanding the motivation of a business can go a long way in getting discounts. Businesses are always looking to move more products or sell more services so ask for a discount if you were to add additional products or services to your purchase.

New businesses are motivated by getting the word out and getting new customers in. Offer to "like" the business on Facebook or to place a link to the businesses website on a blog. Ask for a discount if you introduce a friend, or group of friends, to the business.

It is important to ask the right way. Always be sure to be assertive but nice when asking for a discount. As the old saying goes, "You get more bees with honey". Many times the person you ask will have the discretion to give you the discount but is not obligated. If you annoy or offend them, forget about it.

Once you get your first discount simply by asking, you’ll be hooked. Make a habit out of asking for a discount and you’ll quickly find this is a habit that pays off.



Paul L. Anderson is an investment advisor and Partner at Moneywise Wealth Management in Bakersfield, CA. He is also a host of the Moneywise Guys radio program on KERN 1180 and can be heard throughout Central and Southern California weekdays 10 a.m. to noon PST. His website is www.MoneywiseGuys.com.

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