A Slow Economy Means Big Bargains
photo credit: SqueakyMarmot
The economy has slowed to a crawl, which means less buying power for the average American. But when you do decide to buy, there’s good news: you now have leverage. Vendors are eager to sell their services, from mortgages to gym memberships, and that means that they’re willing to negotiate with you.
Mortgage brokers typically take a percentage — between 1% and 2% — of a loan’s value in fees, so don’t hesitate to ask for a commission cut. Begin by only working with brokers who are upfront and will tell you their fee percentage, then ask if they’re willing to accept a smaller fee. In today’s market, you should pay no more than 0.75% on a $250,000 loan.
When you already have a home, it’s time to negotiate your cable television, telephone, and internet services. Phone and cable companies, longtime rivals, are suffering from unpaid bills and less disposable income, so they’re willing to price-match for your business. Call your current company, call its competitors, and figure out which prices are best. If you don’t have much luck, ask for the retentions department.
Another utility badly in need of your consumer dollars is the cell phone industry. Again, play companies against each other, and look for the best prices. Cell phone retailers, who deal with several companies, are governed by incentives, so you’ll probably get the best deal from them.
For more bargains on health club fees and retail goods like electronics and clothes, check out Money’s Haggle for better prices in a tight economy.
This entry was posted on Saturday, August 23rd, 2008 at 5:21 am and is filed under Economy & Business News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
