How to Never Pay Full Price Again with Dave Ramsey

[Music] hey you guys I'm so excited about this episode because I'm joined by Finance expert host of the Ramsey Show and my dad Dave Ramsey hey Dad thanks for being back on good to be back we're twins look at this look at that twins look at that twinsy sign know it's the black shirt day the black shirt day yeah okay so a month or two ago George Campbell and I did an episode on negotiation on our podcast smart money happy hour and it did great because George and I went back and forth on this like role play where he like was trying to sell me a boat and it was great it was awesome because there's a lot to learn about negotiation and so I realized oh my gosh I I I feel more awkward in asking for a deal or just trying to like play the game of negotiation George loves it you love it I feel like growing up that's like part of though being wise with money especially if you're on a tight budget you're like oh yeah yeah we're going to go in and ask for a deal and you still I feel like with cars and different stuff right you still like negotiate yeah I ask for a deal all the time sure not because I'm a cheap skate but just because it's part of the rhythm of being a noble hillbilly you're supposed to get a deal I know cuz growing up do you feel like you did it more when you guys were tight with money like if you had to walk in and buy a washer and dryer were you more upt like no no we're we have to get this deal like what did that look like um yeah probably I I guess we were we were tighter on money so we were more careful with every little thing then we we might be a little sloppy today on you know not every single thing but but you know my mindset is always you know just ask you know is there a promo code is there a coupon is there a deal are you getting ready to put this on sale this weekend and because you know these stores in particular if you're dealing with that they their like job is to sell stuff so they they like to sell stuff so it's a blessing to them if we buy stuff so it's always good to just try to see if there's something that motivates us to step into the deal right then yeah how okay like out of like 10 times you ask for a deal how often do you actually get one do you think I almost always get something do you think it's because it's you no you think like just asking for it no it's just um you know honestly because it's me I get one thing of the other I either get like they got their Dukes up like I'm gonna you know I don't want I'm GNA fight Dave Ramone fight Dave Ramsey you know I don't want Dave Ramsey's always looking for a deal or they're like oh he's got plenty of money I'm going to take every bit he's got yes so I have to we get some of that too so but most of the time when we're just dealing with regular folks in a regular transaction and they're treating us like regular folks right then it's just like guys you know that doesn't work you know let's figure out a way that this works and see that even makes me nervous okay well we're gonna get into it okay so he's going to be walking us through four steps to a successful negotiation plus he's going to share some of his biggest dues and don'ts when it comes to this topic but first before we get started I want to tell you guys about one of my new favorite games taple so we've been talking about this on the show and you guys this is a really fun game and I love this game personally because there's some games that are kind of like laidback and you kind of socialize and those games are great I like a little bit of the competitive spirit and taple has it there's like a timer you got to do something in an amount of time your brain has to work fast and if it doesn't you lose and so it's just fun and it goes quick which is great too so if you have kids and they know how to spell they they're going to be able to play this game and your friends and your family and there's so many great memories when it comes to board games and it's a great way especially if you're trying to get out of debt save your emergency fund if you're not able to go out and spend a bunch of money out in the world being home with your family not being on screens and playing games it sets up a great great nights for friends and family so make sure to check out taple at Walmart all right let's set up the the first scene okay I'm walking in to an appliance store I got to buy a dryer our dryer broke I need to buy a dryer so my first question to you is do I ask for help or do I just mosy the aisles and not look desperate and see if they come up to me oh I don't think it matters okay it doesn't matter at all that's not going to affect it um you know it's just whether the salesperson in that particular store is empowered to change prices if they're not empowered then you're going to have to talk to salesperson and whoever their leader is whoever the manager is in the store so you could ask for help or have them come to you either way there's not a power no because you know this is not a conflict this is a pleasant experience they're making money and I'm buying a dryer it's a pleasant experience all the way around okay okay so then again you mentioned it earlier you know if you're talking to the 24 year-old sales guy would you automatically like hey can you grab your manager I'd love to you know uh bring him in would you offer that or you good just going back and forth with the sales guy I just ask them I just say listen you know we're going to have to do something different than we're doing right here in order for me to get the dryer because this isn't working can you pull that off or do we need to like bring in your leader your manager and it's okay with me either way but you know this what we're doing right here is not going to work so we're going to have to take it to another level yeah and in order to do that do you have can you do that and they're like sometimes they'll go okay you know and they've got the power to Mark I didn't tell you about this but there's this way we can you know if you wait till Saturday morning we can do it because they're getting ready to go on sale for Labor Day or whatever you know all that kind of garbage they they'll pull something out of their hat or they'll go you know theyve done all you know Mr R we've done all we can do so well let's let's ask your manager then and just see if there's we can do we're not going to be able to connect at this level okay it's good okay next do you tell them that you have a certain amount of money to spend do you tell them that amount or do you let them negotiate or like say the price and you just try to bring them down to what you like you know the total in your head is it do you lose power sharing that total because George in our boat discussion I had like $65,000 to buy this boat or whatever and he was like no he told me I was like no you never share upfront what you have you always kind of work them down or something I don't remember the exact discussion we had but I remember he mentioned that so I was like oh yeah I don't know I probably wouldn't depending on the situation what what is it is it a washer and dryer at a retail store you know you're you're not dealing with anything there but but if you're buying a boat from an individual that's selling a used boat yeah I definitely would not tell them that okay because what the amount of money you have is not relative to the discussion what's relative to the discussion is what's the boat worth and what am I willing to pay for it okay that's really all that matters yeah that's good that's good okay and then how long do you go back and forth with someone until you realize oh yeah it's not going to be there's not going to be a deal here I try not to get into the go back and forth thing yeah I just go you know give me your best deal what have you got here and and you know they'll negotiate with themselves if you ask them too you know it's like you know you're asking 65,000 and you go well that's cool but you know you know I'm here with cash and we can do a deal today what's your best deal the one that makes you hurt just a little bit but still the boat's gone yeah because your your goal is get rid of the boat today right they're like yeah yeah well you know what's your very best deal and they go you know 55,000 well I might have offered 59 you knowt yeah I need to be quiet and let them come on down and then when they go and I go well is that all you can do 55 and they go h i could do 54 five you know okay well you know I'm willing to do and then I'll put a price in you know I'm willing to do 52 right now okay so you still even go a little lower yeah sure sure why not because all they can do is say no I told you 54 is all I can do y well okay then we're there and and all of this is contingent upon this there's there's three things that make a negotiation successful one is you as a buyer have to have a lot of knowledge about the value and the details of what you're doing yeah yeah so if I'm going to look at a $65,000 boat or a washer and dryer I'm going to know the price of that washer and dryer whole bunch of different places I'm going to know I can get it here at Amazon I know I can get it here shipped I know I can get it at Costco there I know I can get it Lowe's there whatever right I'm going to have look through the their website and then if I wander into the store then the guy goes and I go well man I get like six places cheaper than that you know so your knowledge base of the thing and that $65,000 boat I've looked it up on Kelly Blue Book I've studied some of the Marine websites where they're selling boats and just a little I'm actually not coming in cold like I have no idea what this boat is worth yes I actually know what it's worth that happened to me with George I I know the boat is worth 60 and so I know if I can get it for 53 that I've gotten a good deal and he got rid of a boat that is's sitting in his driveway blocking everything he needs to get rid of it so it's good for him um so that the second thing is know your options which is part of the knowledge base you got to know the product know what it is know what the value is and and then know your options know where else you can do it you don't have to buy that boat I don't have to buy that washer and dryer today at that place and I think that's one of the biggest mistakes people make and again you could go range from like wash and dryer to a house even but you get so locked in on one individual thing and you're like this is all I want this is all I want and then suddenly you lose power you've lost it all because what what you don't realize is the the human on the other side even though they don't know they're doing it they have taken all your cues in your body language changes your voice pitch changes the way you're standing changes the way your eyes are moving changes your uh your Cadence and your voice everything changes when you are married to something yeah and desperate for that one you have you have surrendered and all of the you know all the body you know and they're like oh that one's dead let's just wrap it up you know and but if you're still in the game you know and you're still like you know and you're I can go some place else and they know you mean it then all of a sudden that changes their their need to help you with the transaction uh and then the third thing that goes with that is patience mhm the walking away know is knowing the product knowing your options and then patience and that gives you walkway power patience is I don't have to do this yeah yeah because we really there's very few of these things we have to do but we emotionally get all excited and we get car fever and so I have to buy the car and it's the only one and they're rare and they're hard to get and oh and all this drama queen crap and our own head costs us tens of thousands of dollars yes it's so true though it is so emotional and especially depending on what it is I'm like it is I can feel that feel that so much okay so now that we've kind of gone over some of that because I think those are such great tips okay are there any things that you just don't do like avoid this well I mean we would be the opposite of it you don't walk in with no knowledge you don't walk in and go you know and cuz they can read as you're walking up to the couch the furniture salesman goes well they already bought the couch y yeah or they're going no they're kind of looking and they might go to the other store and so when you know they can read your body language again your voice tone and they don't know they're doing it's not like they had some class on it humans we know we can you just look over you go well that one bought that and there's no playing hard to get here at all and so uh the other thing I don't do is I'm not trying to harm the other side just not to bring harm to them not be mean well it's not and therefore it's not a conflict it's actually a blessing to the guy if we buy his boat and get it out of his driveway and he has cash on his hand to go do whatever it is he's going to do with his cash he wanted rid of the boat we got rid of the boat he he got his goal was accomplished that's a win for him win for us is we got a boat and we got a good price on it based on our discussion and so this is a win-win scenario if you have to harm someone yeah take advantage of someone lie to someone in order to get a good deal that's completely off limits totally you have to have integrity and you can have the best interest of the other party at heart yeah and do you think is there is there like ever a scenario where somebody is selling something will use a car and you you've done all your research and you know it's worth 20 grand and they're like I don't know if this would ever happen but they're they're like oh I don't know maybe 12 and you're thinking oh no like you could be getting more for this and you don't know what you're doing on that side I don't know does that make sense like yeah I've done that buying like real estate for instance I said you know the appraisal on this property is 300,000 that means you could probably get 300,000 for it and you really need to think about that but if you want it sold today and we'll close it Monday I'll give you cash the deal I'm willing to doce 200 but you know you really need to think about that and just kind of put it back on them because you don't want them later feeling like well they ripped me off yeah that's right and you know and I've heard some wonderful stories with Ramsey listeners as an example I I talked to one not long ago and the lady said you know we had a a cheap car that we were selling we were moving up uh or we were buying a car I'm sorry for ourg daughter and um uh for a teenager a cheap car and the people they're talking to they said why are you selling the car we're selling it to get out of debt well they said you know we're going to pay full price to help them on their debt free Journey yeah oh yeah it was just it was more of a generosity move yeah than it was a negotiation move yeah totally but they just said that or I've run into situations working in the church in a Ministry situation where there's a widow involved and someone says okay you know you don't take advantage of widows I me you want to make sure paid too much there right but that's not really a negotiation thing that's just a values issue that's right that's right and I think that's where people get maybe could get tripped up when we're talking about negotiation all of it where it's like not only do I not want to feel cheap but I also like don't want the other person to walk away with a bad deal I want us to both win and you can do that you can do that in a negotiation where you both walk away exactly I mean the ultimate is the garage sale right if it doesn't sell by the end of the day what happens to the crap in the garage sale right it goes to Salvation Army yeah for zero yeah and so anything you get for that couch is great at 3:00 in the afternoon in the garage sale is way more than you're going to get tomorrow at Salvation Army and we got it out of your garage and you didn't have to move it you know so everybody's winning here yeah that's good that's so good okay so let's talk about what people should do in like very specific scenarios that they probably will find themselves in so the first big one buying a house MH negotiations around house prices which again the market it's so wild it's high but yet people you know depending on where they are financially still are in a position that they want to buy a house and they're able to so they're walking into that scenario what are some things in there that they should do and the housing one specifically well again let's go back to our big three okay we're going to have a lot of knowledge about it what's the square foot average square foot price on the size of Home in the area that I'm looking for therefore what is this house worth okay and by the time you've looked at a few neighborhoods and you've kind of got it dialed in your realtor your real estate agent your Ramsey trusted agent should be walking with you and saying okay here's comps here's comparable sales in the area so you know you're looking at that house and you're going it it it's just not a $900,000 house yeah it's a $700,000 house the guy's got $900 on it but it's just not it's not worth that the value AA it w't appraise for that and and so you know that going in so you got to know what's going on you don't get married to it you got to maintain walkway and the way you don't get married to it is you have lots of options you just keep looking there's another house there's a house on every stinking Corner we'll find another house and so slow down where people got you know in this last cycle when it got so frenzied people were overpaying because they were violating every bit of that and they were just like they were completely on fire they were in the fever mode and run run run run run I'm not going to get a house as if in your entire life you're not going to get a house if you don't buy one right now in one of the most frenzied times in history well that's crazy yeah just calm down so you know for instance we have bought ramsy have bought no real estate M recently there's not been deals and I don't buy real estate unless I buy it at a deal there's not even been any Bargains out there you know things are slowing down we may see a few more Bargains again so we may be back in the market again but we just set on the sidelines um you know in terms of investment real estate yeah you know and we're not going to buy it unless it's a deal so for a family though that's buying just their primary home if you're in a financial position to do it though yeah it's a it's a great time to buy overpay though that's the point is don't overpay because you didn't control you yes yeah your emotions yeah and if you got other options cuz you've looked at a lot of different properties Shar and I sold our home back in 20 and we knew we were moving to a certain neighborhood so we had looked at eight houses in that neighborhood and immediately had ruled out five of them so there were three possibilities and you know we were going to buy one of them because that's where we wanted to be and you know so we bounced we hit one and couldn't and we bounced and went to the second one we're living in the second choice you know and it turned out it turned out to be okay you know totally It's a Great Mouse it's probably better than the other one I think God had his hand on it so but you just can't get all fatalistic as if there's one there's only one oh brother drama okay so for cars what's some of the roles the three you're talking about for sure but things like you want to check to make sure like clean take it to a mechanic making sure that it's inspected like what are a couple of those Nuance things it's great to have the car having a mechanic do an inspection on it if you want to get real detailed they can do an oil change with the owner's permission and do an analysis on the oil because what's in the oil it tells you how bad the engine is if there's shavings in there and so forth it tells you the engine's got some wear if there's smoke in that oil there's that engine's got some wear and so you can look at stuff like that if you want to get real technical about it I wouldn't do all that for a 20,000 an under car though if you're buying a super something expensive yeah I probably have it looked at yeah if you're not getting it from a reputable dealer who's already combed through it do you think dealers or individual buyers for someone that's buying a used you know $25,000 car uh individual individual you because the individual doesn't have any um they don't have cost of goods sold in it if a dealer's got that $25,000 car sitting there it's because he's traded for it or he bought it at auction to put on his lot that means he just the other day paid $18,000 for it okay the seller of of an an individual selling $25,000 car they bought it four years ago for 50,000 yeah and so what they paid for it is completely irrelevant in the discussion as to what you'll pay for it today what the dealer paid for it is very relevant because they're not going to buy it for 18 and then lose money right right so their cost of good sold ERS into that they're looking at margins is what they're looking at an individual seller is not their margins don't come into it they what they paid for it's irrelevant it's just what's the car worth what are they willing to take for it what's their situation how motivated are they to sell it yeah uh but you can almost always get a better deal from an individual those are great tips so I think one of the most powerful things though for people to take away from this is that negotiation is not bad and and that you can have a level of power in it to make a wise decision for your family and not harm the other person in the process absolutely I mean if you just change moccasins for a second with the person who if you have something you want to sell if someone buys it from you at a surpris that you that you're okay with they have blessed you yep yep a and so you're a blessing when you're a buyer mhm you're bringing them good news you know I have money I have money yeah I have money and you're not going to have to have that boat in your driveway anymore it's a wonderful day for both of us you know so just it's not a conflict y it's a dance and everybody's enjoying the party and do the dance because it'll it'll end up saving you money probably if you get the deal that's the other great thing is you walk away I think when people uh don't ask for a bargain or or refuse to negotiate for that vote um it's because a they feel like it's a conflict or B that they feel like they're harming someone and you just have to take those things off the table if it is a conflict or you're harming someone you should go to another deal right you should walk away right you shouldn't do something to harm someone y but you know I used to buy foreclosure houses and we would buy them and close the deal on Thursday before they Geto foreclosed on on Friday yeah so these people did not get foreclosed on and put money in their pocket yeah that 24 hours later they would have zero Y and a foreclosure on their record yes obviously I'm getting a great buy but it saved their lives yeah yeah in that way totally totally so good thanks for coming on fun negotiation a great topic you guys and again it can be a little intimidating at times but you guys step into it step into it especially these bigger purchases that you're doing whether it's appliances cars even houses use these tips because because it'll save some money which is awesome okay so one way if you are planning to buy something that I would really recommend to use is the every dooll app so we talk about this app all the time on the show but it's great for budgeting but it's also great for planning so if you know ahead of time hey we're going have to replace the car probably by next summer you can start putting money away and actually using every dollar has a tool in there to help with the syncing fund and to help you when it comes to these big purchases so make sure to download it for free check out every dollar and if you're interested in hearing more or learning more from Dave himself s all of us Ramsey personalities make sure to check out the ramsy show and it is on podcast on YouTube on Radio on serus XM it's all over the place so make sure to listen and follow you on all socials at Dave Ramsey and uh you're on Tik talkk Instagram Facebook you're on all of it pretty great make sure to send this video to a friend who may be like me and you they need like a little pep talk you know when it comes to negotiating make sure to send them this video thanks you guys and remember to take control of your money and create a life you [Music] love

Channel: Rachel Cruze

Views: 52,354

Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, How to Never Pay Full Price Again with Dave Ramsey

Id: AZDjw2B1vaQ

Length: 22min 6sec (1326 seconds)

Published: Mon Nov 27 2023