Negotiating in Life, Business Negotiation June 8, 2009

Recession Is Boon to Negotiating Skills

There has never been a better time to sharpen your negotiating skills. Many companies are feeling the recessionary economy’s pinch and are now more open to negotiating rates, fees and added value. Because of the recession, the power scales are being tipped in favor of the buyer.

Consumers who negotiate are getting better deals and saving money. Savvy shoppers are bargaining for deals on furniture and for other goods and services that were traditionally sold at face value. In fact, many shoppers are using the recession as leverage, knowing that stores are anxious for sales.

“Most everything, it seems, is open to negotiation these days as supply outstrips demand, emboldening price-conscious consumers to push for discounts and deals,” writes Susan Todd in the New Jersey Star-Ledger.

http://www.nj.com/news/index.ssf/2009/06/in_recession_more_consumers_pu.html

Price negotiations are also going on in the business-to-business sector. For instance, according to Crain’s Detroit Business, hotels are now more flexible on rates for meetings and conventions (read article here:

http://www.crainsdetroit.com/article/20090607/FREE/306079992/1068#

The Los Angeles Times is reporting that a growing vacancy rate in even upscale retail locations is “giving a bargaining edge to those tenants who've been able to hang on, and many have been negotiating cheaper leases. In some cases, landlords in the Los Angeles area have dropped rents between 20% and 40%, brokers said.” Read the full article here:

http://www.latimes.com/business/la-fi-retail-space6-2009jun06,0,826746.story

As with any negotiation, be prepared. Do your research, and know what price you are willing to pay before you start negotiating. Also, be sure to understand the willingness of the seller to negotiate.

For a more in-depth look at how to negotiate during a recession, refer to our earlier post: Strategies for Recession Negotiations.

Have you found that you are negotiating price more during the recession? Please share your experiences in the comments.