Quick Answer: Why Is Bargain Shopping An Important Part Of A Healthy Financial Plan?

What are the seven rules of negotiating?

The 7 Rules of Power NegotiationWhere do people learn to negotiate successfully.

Rule No 1 – Everything is negotiable.

Rule No 2 – Know what you want before negotiating.

Rule No 3 – Aim for a Win/Win negotiation.

Rule No.

Rule No 5 – Never believe anyone else is entirely on your side.

Rule No 6 – Strive to be innocent.

Rule 7.More items…•.

Why is it important to be honest when negotiating?

Stark and Jane Flaherty write: “The more confidence your counterpart has in your honesty, integrity and reliability, the easier you will find it to negotiate.” When you develop trust, you can more easily accomplish what they say is the ideal outcome in almost any scenario: win-win.

What is the If I take away technique?

Use the “If I” take-away technique. You use this one near the end of the deal, after you’ve pretty much figured out the lowest price possible. The point is to agree to a price, but then throw something else into the deal.

What are the key elements of negotiation?

Seven Elements of NegotiationsInterests. Interests are “the fundamental drivers of negotiation,” according to Patton—our basic needs, wants, and motivations. … Legitimacy. … Relationships. … Alternatives and BATNA. … Options. … Commitments. … Communication.

What qualifies as a significant purchase?

Significant Purchase. An amount of money you spend, usually $300, that causes some pain to part with. Opportunity Cost. refers to the financial opportunity that is given up because you choose to do something else with your money.

Why financing a purchase is a bad idea?

Explain why financing a purchase is a bad idea. Going into debt for any reason is a bad idea because it puts you at financial risk, causes you to pay more than the cost of the item, and prevents you from building wealth. … Considering opportunity cost is just one of the steps needed to have power over purchase.

What is the best option if you begin losing money in your mutual fund?

What is your best option if you begin losing money in your mutual fund? a. Call your broker and switch your funds.

How can shopping for bargains help you to win with money?

Involves negotiating the lowest price possible, then throwing something else into the deal. Will make you a wise consumer. Gives you more bargaining power than using credit. Because Cash is emotional, Cash has immediacy, and Cash is visual.

What are the three keys for getting bargains?

Terms in this set (14)What are the 3 keys to getting bargains? Learn to negotiate everything. … What are the 7 basic rules of negotiating? Always tell the truth. … What are places to find a great deal? … Integrity. … Markup. … Negotiating. … Patience. … Walkaway power.More items…

What are the 5 principles in negotiation?

Ethics and Negotiation: 5 Principles of Negotiation to Boost Your Bargaining Skills in Business SituationsPrinciple 1. Reciprocity: Would I want others to treat me or someone close to me this way?Principle 2. Publicity: … Principle 3. Trusted friend: … Principle 4. Universality: … Principle 5. Legacy:

What are the benefits of being a wise consumer?

In addition to economic savings, wise consumers enjoy improved health and have a positive impact on the larger social and even global environment. Explain how “walk-away power” can be used as a negotiating tool. You must not get emotionally attached to the purchase.

What is a good consumer?

Being a Good Consumer. A consumer is someone who purchases goods and services. Being a good consumer is being careful about how you spend your money. In other words, a good consumer spends money wisely.

What are the skills of a wise consumer?

Terms in this set (6)Wise consumer. Can promote his/her health and well-being can save time and money spending wisely to get the most out of what is spent.Budgeting. Plan ahead what to buy and budget money.Bargaining. Negotiate for a price.Data collection. … Comparison buying. … Communication and assertiveness.

What is the first key to getting a huge bargain?

negotiateWhat is the first key to opening the door to a huge bargain? Learning to negotiate. Learning to negotiate is everything.

What are five steps you should take before making a significant purchase?

Test Review – Chapter 6 – Consumer AwarenessABWhat are the five steps you should take before making a significant purchase?1. Wait overnight, 2. Consider your buying motives, 3. Make sure you understand what you are buying, 4. Consider the opportunity cost, and 5. seek wise counsel45 more rows

What are 5 rules of negotiation?

1) SHUT UP and Listen :2) Be willing to Walk Away.3) Shift the Focus Light.4) Do Not take it Personally.5) Do Your Homework.

How can I be a wise and intelligent consumer?

How to Be a Wise ConsumerAsk Others for Referrals. Having hundreds of friends on your social network sites can be real plus when you’re shopping for something. … Do Your Own Research. Researching before you purchase is more than just hunting down the lowest price. … Investigate Return Policies. … Stick to Your Budget.