How to Negotiate Your Bills and Save Hundreds
A 15-minute phone call could be the most profitable quarter-hour of your year. Here's how to do it.
1. Do Your Homework First
Knowledge is power. Before you call, research competitor offers. What are other companies in your area charging for similar services? Knowing the market rate gives you a powerful negotiating position. A quick search for 'internet deals near me' can save you hundreds.
2. Target the Right Bills
Not every bill is negotiable, but many are. Your best targets are services with high competition: cable TV, internet, cell phone plans, and even car insurance. Your rent or mortgage is less likely to be negotiable, but it's not impossible.
3. Get to the 'Retention' Department
When you call customer service, your goal is to speak with the 'retention' or 'cancellation' department. These are the employees who are authorized to offer you the best deals to prevent you from leaving. Simply state, 'I'm considering canceling my service because it's become too expensive.'
4. Be Polite, But Firm
The person on the other end of the phone is more likely to help you if you're courteous. Explain your situation calmly. 'I've been a loyal customer for X years, and my bill has gone up. I've seen an offer from Competitor Y for a similar service at a lower price. I'd like to stay with you, but I need a more competitive rate. Can you help me with that?'
5. Don't Be Afraid to Walk Away (or Bluff)
If they aren't offering a deal you're happy with, be prepared to thank them for their time and hang up. Sometimes, they may call you back with a better offer. If you're genuinely willing to switch providers, your negotiating position is even stronger.
6. Set a Calendar Reminder
Many promotional rates only last for 6 or 12 months. When you secure a new, lower rate, immediately set a reminder in your calendar for one month before it's set to expire. This prompts you to make the call again and keep your bills low year after year.