Tips on negotiating everything

You didn’t specify which area of negotiations you were interested in (shopping, leases, contracts, etc.), so here are some basic ground rules for the beginner. I get a lot more in-depth in my book, "How to Haggle" (published by Paladin Press):

1. Everything is negotiable, except for groceries and gasoline (and sometimes even then.)
2. It’s never been more true that "cash is king".  Many sellers, landlords, and other providers of goods and services are hurting for cash right now, and will give larger discounts than when the economy is good. Let the other party know that you are a serious customer, and that you have cash available. The more stuff you’re looking to buy, the more they’ll discount.
3. Don’t fall in love. Be prepared to walk away unless most of your terms are met. There will be a new deal coming along shortly, I promise.
4. Do as much market research as you can to find out the other party’s position. If negotiating salary, for instance, do some web research to find out what this position typically pays in your area of the country. If negotiating price, be aware of similar items and what they’re selling for online (including shipping). If negotiating a lease, find out what similar properties are renting for.
5. Be polite. People will be more inclined to ease up on their terms if they like you.
6. Ask for more than you want, then be prepared to take less than your initial offer. For example, if you want a $100 discount on a $500 item, ask for a $150 discount and let them counter with $100.
7. Examine the condition of the item (or apartment or whatever), and gently point out flaws. Example: "Gee, I’m really interested in this car. It’s too bad the fender is scratched." If the seller does not immediately drop the price, this approach will still give you ammunition later on.
8. Even on items where profit margins are tight, you can still usually get a 4% discount by offering to pay in cash, rather than by credit card. The merchant has to pay 3-4% of the total sale price for credit card processing, and it usually doesn’t matter to him whether that discount goes to you or to the credit card company.
9. You might also get the seller to "eat" the sales tax or waive any start-up fees, application fees, etc.
10. Even if you don’t end up saving any cash, you can sometimes get the other party to throw in a few extras–another item thrown in for free with the sale, 3 months of free garage space with the lease, etc.
11. Don’t start out too low. Offering $200 for a $500 item will insult the seller and he will refuse to negotiate further.
12. Make sure you’re dealing with someone who has the authority to negotiate. A floor clerk at Walmart will not be able to negotiate; an assistant manager will.

In addition, bear in mind that negotiation is a skill, not a super power. Different techniques will work in different situations. Nobody was born knowing how to negotiate, and even top-notch hagglers don’t always get their way. With practice, though, it’s a skill that will save you a pile of money. Now go out and practice!