Print

Email story

Comment

Letter to the editor

Columns

Don't be afraid to ask for a better deal

Several months ago, we got a great offer in the mail and switched our home Internet service to Bright House. When I called Verizon to cancel our DSL line, the customer service representative asked why.

By Helen Huntley, Times Personal Finance Editor
Published February 24, 2008

Several months ago, we got a great offer in the mail and switched our home Internet service to Bright House. When I called Verizon to cancel our DSL line, the customer service representative asked why.

"Bright House gave me a better deal," I said.

"We would have given you a better deal," she replied.

"Too late" was all I had to say.

I was highly annoyed that Verizon had taken me for granted and not offered me a better deal without prompting. However, I have to admit that paying too much for Internet service was my own fault. Verizon had enticed me to sign up for DSL with an attractive offer. When the initial term ran out, the rate went up, but I never called about it.

The bottom line: If you don't ask for something, chances are good that you won't get it.

"This is probably one of the most competitive markets in the country," Verizon spokesman Bob Elek said. "It's in all consumers' interest to do their homework and be very up front with companies when you talk about what you are thinking about doing."

A reader emphasized the point for me recently, telling me about his CD renewal experience at a local bank. When the bank offered him a renewal rate he thought was too low, he asked to withdraw his money. In response, the bank representative offered him a higher "customer-retention rate."

Banks often are willing to go the extra mile to make a customer happy, said Greg McBride, senior financial analyst at Bankrate.com. "Whether that's offering a higher CD yield or waiving fees, there is greater empowerment at the branch level to make decisions that are customer-friendly."

He said employees don't have unlimited latitude - "they can't give away the store" - but they are willing to be flexible.

The "ask-for-what-you-want" principle particularly applies to businesses that are highly competitive, such as financial services and telecommunications services. But many businesses will respond to simple customer requests, such as honoring competitors' coupons or advertised specials if you ask. Jewelry and furniture stores, appliance and car dealers, and other sellers of big-ticket items often are willing to negotiate on price.

Here's what it takes to get the best results:

- Knowledge of the market. What deals are out there? If you aren't paying attention, you don't know whether the price you are paying (or being asked to pay) is a great deal or a lousy one. If you have a competitor's offer in hand, you have evidence to back up your request.

- Willingness and ability to take your business elsewhere. "If you call a credit card issuer and ask for a lower rate, you have to be prepared that they might call your bluff," McBride said. If you have lousy credit and probably wouldn't qualify for the great offer you have in hand, your negotiating position is weak. But if both you and the person you're asking know that you can go elsewhere, your position is strong.

- Asking nicely. If you come off as rough and abrasive, customer service representatives are going to be less inclined to use their discretion to give you what you want.

[Last modified February 22, 2008, 21:50:22]