How to Negotiate - Expert Advice

Know your prices

Before you make any purchase, spend some time trawling the internet to familiarize yourself with the cost of the product at online retailers. This will stand you in much better stead when negotiating, as you will know when it is or isn’t a good deal and be able to negotiate with more confidence. If you know any other self-builders, find out what sort of discounts they received — and don’t settle for less at the same supplier.

Aim high, but be reasonable

A 10% discount is offered almost as standard at many suppliers, so you should aim higher. Indeed, they often expect it. Do your price research beforehand and you will be in a better position to negotiate 20%, even 30% off the list price.

It is possible to go even higher than this, especially given the current economic climate, but be careful not to keep hammering at them when the deal is already good. Very large reductions are likely to make the deal unprofitable for the supplier, and they might begin to look upon you as a waste of time. Saying that, some selfbuilders who knew when to push have managed to save 50% or more.

Play suppliers off one another

Most businesses would rather you bought from them at a cheaper price than put money in the pockets of a competitor. It might take longer to keep going back and forth, but it will pay off in the long run.

Make friends with the staff

Or at least be polite and friendly. Tell them about your project, so that they know you are an individual building a home for your family. The right attitude will make them want to help you.

Get serious

Show them your plans and suggest that you have a lot of potential business coming their way, now and in the future. They’ll want you as a customer, and so will be far more forthcoming with discounts.

Negotiate with online suppliers, too

Just because a business operates solely online, doesn’t mean that you can’t negotiate. The internet is an even more competitive marketplace than the high street. A reputable business will publish a telephone number on the website, so give them a call.

See what else you can get

If their level of discount doesn’t quite meet your expectations, it’s worth asking for other extras. Ask for free delivery and see if they’ll throw in any smaller items or usually paid-for services.

Remember they can only say no...

Asking for a discount can be one of the most dreaded parts of self-building for many people, who would rather shy away from possible confrontation or embarrassment and pay full price than discuss a discount. But not only are suppliers used to people bargaining, they do it themselves with their own suppliers — you have nothing to lose by trying.

"Check the invoices"

Author of The Housebuilder’s Bible, Mark Brinkley offers advice.

Self-builders should start by opening accounts at local builders' merchants. The time has gone when such places were ‘trade only’ — these days they are generally happy to deal with anyone who may be spending significant sums.
Go in and introduce yourself, show them your plans and tell them you want to open an account and get some quotes for materials prices. Ask them if they will consider pricing up your job. Sometimes this is a free service, but you may be asked to pay something (around £100).

Having got two or three sets of prices, you immediately have a good idea who is offering what and what the going rate is for materials locally. What tends to happen is that one merchant wants it more and the manager or the sales rep will make overtures to you to try and win your business. At this point, use the better prices from rivals to gain some traction and get them to better their prices. With an account, you can deal directly with them over the phone, rather than having to haggle at the counter.

Also, check the invoices when they arrive. The prices shown are often rather different (i.e. higher) than the ones you have agreed.

"You've got to stand your ground"

Self-builder Marcus Copeland shares his negotiating tactics.

I played everyone off each other to save £10,000s. I simply got one quote and then took it to someone else, got a lower quote, and then took that onto the next company and so on. Take my windows: the first company wanted £50,000. In the end, I paid £25,000. Using the same tactic, my glass balconies were originally quoted at £15,000 (I paid £5,000), while my zinc roof was half price.

Most builders’ standard discount is 30%, so if you push for it you’ll get it too. Tell the merchant, “I’ll get it all from you, but only if I can pay trade.” Especially now, companies want your business and almost everyone was prepared to negotiate. You’ve just got to stand your ground, although relations can sour.

I threw away too much money in the early stages, where I was happy with discounts of 5-10%, as I had money to spare. But you negotiate a lot harder at the end, when money is tight. From day one, imagine you’ve got no money left!

Read more about Marcus' Self-build in his online blog...

Find out how to save £1,000s on your self-build by negotiating...

Further Reading

• The Secrets of Building to a Budget
• The 10 Rules of Building a House for Under £150,000
• Building Contracts: When Things Go Wrong