Martin Lewis dedicates whole sections of his programme, and on his website, Money Saving Expert, it says: “In mature industries, companies grow by tempting customers from other firms, not by grabbing customers new to that market (for example, almost everyone has a mobile). Retaining custom is key.”
In those sectors, such as breakdown insurance, TV/broadband/phone deals and car buying, haggling can really pay off.
Recommended reading:
Consumer expert Helen Dewdney is an expert haggler, who gives advice on money matters at The Complaining Cow. Here she shares her top haggling tips for negotiating the best deals.
How to haggle on contract renewal
1. Get negotiating
Usually, if you threaten to leave a company, you’ll be made an offer. However, you can possibly get better deals by negotiating. Look at offers available for new customers and request one for being a loyal customer. This is particularly true of telecom and insurance companies.
NB: Insurance companies must now legally offer you the same price as they would a new customer. This does not mean it is the cheapest price, though. So, tell your provider about the comparison site prices that they must beat.
2. Do your research
Do your research and work out how much your exit fee would be, should you be charged one, and see what other companies can offer. Look at comparison sites, including using cashback sites.
This would allow you to tell your current provider the price, showing that even with the exit fee it is cheaper to leave.
3. Phone and threaten to leave
You’ll be put through to the department that deals with negotiating. It might be called something quite different along the lines of ending contracts but they will try to convince you to stay.
Helen’s top tip: Before you call, write down two numbers: the maximum you’re willing to pay monthly and the lowest you’re willing to pay. These numbers should guide your haggling: Stay focussed and within the limits you’ve set.
You can probably do this on an online chat too.
How to haggle to get the best prices for goodshttps://t.co/rv0jhJbMa6 https://t.co/rv0jhJbMa6
— Helen Dewdney (@ComplainingCow) January 30, 2024
4. Don’t take the first offer
Phrases to get a better offer:
- ‘I’ve worked out my budget, and my absolute max is £[insert amount here] a month…’
- ‘[BT/Sky/Virgin Media] can do it for less…’
- ‘I need to think about it…’
- ‘I think my other half/housemate/horse will go bonkers if I agree to pay that…’
- ‘It’s still a lot of money…’
- ‘Is that the very best you can do?’
They may push you to agree to an offer because it’s only available for a ‘limited time’, but don’t feel pressured into agreeing to a price or deal unless you’re certain it’s what you want.
5. And finally…
As negotiations come to a close, a classic sales technique is to stay silent. They want you to feel awkward and fill the silence by saying you’ll take the offer – keep quiet and make them fill it with a better offer.
Tips for getting what you want
- Build and develop a good relationship as you negotiate
- Be cool, calm, polite and assertive.
- Importantly, make sure you start the process with the person who has authority to make deals.
- Keep good humour. It’s just a game. People are more open to persuasion if you make them feel good rather than trying to beat them down in price. Make them want to help you.
If all else fails…
Write to the Executive team
Find the email address for the CEO from ceoemail.com and write to them saying that you are intending to leave and follow the advice above. This works if you feel that you don’t want to speak to anyone by telephone or you want your evidence that a deal has been agreed.