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Never has there been a better moment to try your hand at those negotiating skills usually only ever seen in far-flung markets, writes Harriet Meyer
There may seem little cause for cheer at present, but for those still willing and able to splash out on big ticket items there is reason for a spring in your step: the economic gloom makes this an ideal time to hammer down the price of luxury goods and bag a bargain.
Ever tested your haggling skills in the chaotic street markets of far-flung holiday destinations? Putting this talent to use on home soil may not immediately appeal as a way to slash costs - haggling over prices is far from the traditional, reserved British character. Yet with retailers expecting dire consequences from a deep recession, shops and businesses alike are inclined to be more flexible than ever when it comes to negotiating - so why not chance your arm and take advantage of this?
Whether you need a new sofa, car or holiday, it's a buyer's market, says Mark Lockley, a negotiating expert and author of How to Pay Less for More. "Embarrassment prevents many people from negotiating when it comes to price," he says. "But if you do some preparation and practice, your confidence will increase and you can make some serious savings."
New car
Sales of new cars have sunk to an all-time low, with the drying up of finance deals compounding the misery for dealerships since the onset of the credit freeze. This has inevitably left dealers feeling the pinch and scrambling to get rid of stock. The flipside for the savvy consumer is that you can get big sums off your dream set of wheels.
According to Simon Empson, managing director of Essex-based car broker Broadspeed.com, there are discounts of 25% to 50% to be had for those willing to haggle. The best time to approach a dealer is in the final few days of each quarter, when they are at the end of their commission cycle.
"Nearly half of all our business is concentrated on just four days a year, at the end of each quarter, when the brave customers searching for a deal approach us - and they can take advantage of lots of offers we are forbidden from displaying online," he says.
Try to get some extras thrown in, Lockley adds, such as a free tank of petrol. "And be interested, but not committed; talk-up a competitor's model that you are also considering - if the salesperson thinks you may go and buy an alternative model down the road, they will do all they can to stop you doing that."
Get your skates on, however - Empson says production cuts, struggling component manufacturers and the collapsing pound will see a short supply of cars later in the year, and cheap deals will dry up.
Furniture
Big-ticket items such as furniture often have a high mark-up, leaving room for the buyer to negotiate. If you're planning to haggle, your best bet will be with the independent retailers, as they are more likely to be open to reducing prices.
"Furniture retailers aren't growing at the moment unless they're very niche," says Neil Saunders, analyst at retail consultancy Verdict. "They will be looking for every sale they can as it's no longer about making profit, but keeping the cashflow going."
If it's a particular item you want, look on the internet to find the cheapest price on offer, says Sarah Dennis, retail research at consumer group Which?. "Then ask for a senior member of staff in a shop as they are more likely to advise on available discounts, and build a rapport with them."
Be specific about the deal you want, she adds - asking for, say, 20% to be knocked off - and then negotiating from there.
Electrical goods
The method for knocking a significant sum off electrical goods is similar. Start with the online retailers, and find the cheapest price. Then, take a printout of this to the shop and find a salesperson keen to detail all the bells and whistles on the product you want.
"Put effort into asking lots of questions, and think about what will motivate them to give you a better deal, so stay away from saying your freezer has packed up, for example, as then they'll know you're desperate for a new one," Lockley says. "Staff invariably work on commission in these shops and can offer hefty discounts if you refuse to budge and they feel you could go elsewhere."
Also, get them to throw in free delivery if the item is bulky. Sales staff have weekly, monthly or quarterly targets on the amount of warranties they can sell. Reaching this target's often crucial to them, so it gives consumers a real bargaining tool on products they're likely to flog warranties with.
The best bit is you're free to change your mind within 45 days of purchasing the warranty, so cancel for a full refund. Comet, Dixons at PC World are especially good for this loophole, according to website MoneySavingExpert.com.
Holidays
With holiday firms such as XL and airlines such as Zoom going bust during the downturn, the survivors need your cash more than ever to stay in business. So here's somewhere to put your haggling skills to the test. Before booking a holiday, spend some time doing your research and comparing prices online, in brochures and at travel agents - it may be worth calling the tour operator and speaking to someone senior who can further reduce the cost.
Some travel agents also have to sell a certain number of holidays a week, so be patient and test the water on different days.
"To a certain extent travel agents expect you to haggle, and have a pot of money that's available to clinch the deal if the price is right," says Rochelle Turner, head of research at Which? Holidays. "Our research shows the brochure price tends to be higher than that available from a travel agent."
Also, pick up the phone and speak to the hotel owners themselves, or the manager of the resort, Lockley says. "This can work in your favour when booking a holiday independently."
• Do you dare to haggle? Have you ever tried it and been successful - or had the door slammed in your face? Let us know by writing to us at Cash, The Observer, King's Place, 90 York Way, London N1 9GU, email cash@observer.co.uk. You can find more haggling tips on our website at www.guardian.co.uk/money/series/the-negotiator
Case study
'I got £300 off a keyboard and a stand thrown
Bartender and musician Oliver Stuart, 23, from Islington, London, has saved hundreds of pounds by haggling down the price of many high street goods.
He first became aware of the potential savings while working as a sales consultant for electrical retain chain Currys for six months while he was at university in 2004.
He says: "It had a system which allowed employees the chance to offer discounts of 10% off an amount ending in 99p and 20% off a sum ending in 95p, but customers were unaware of this. It doesn't occur to people to haggle in a major store."
Since then, he has made even better use of his haggling skills.
"Even if I just go to the grocer I ask for 20p off an avocado. As I'm a musician, I haggled £300 off a keyboard which was priced at £1,200 in one well-known store. I even got a stand thrown in."
He also managed to get the price of an Apple laptop reduced by 15%. "I just asked, and told them bluntly I couldn't afford it otherwise - although I try not to be too brazen, and throw in a little charm," he says.
A spokesman for Currys claims that its stores have never had - and do not currently have - the discount policy in place that Stuart details from his time there.
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