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Transcript

Save Without Sacrifice: Bill Negotiation Tips · Talking FACS

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  Welcome to Talking FACS, what you need to know about family,
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  food, finance, and fitness.
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  This nationally recognized, award-winning podcast is hosted by the University
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  of Kentucky Family and Consumer Sciences Extension Program.
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  Our educators share research knowledge with individuals, families,
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  and communities to improve quality of life.
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  Everyone wants to have less money going out than they have coming in.
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  Welcome to MoneyWise on Talking FACs, where we share research-based information
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  to help you improve your financial future.
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  I'm your host, Mindy McCulley, Extension Specialist for Instructional Support.
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  On today's episode of Talking FACS, we're joined by Kristen Jowers,
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  Extension Specialist for One Op with the Kentucky Cooperative Extension.
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  So welcome back to the podcast. Kristen, I'm glad you're here.
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  Hey, Mindy, I'm happy to be here.
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  So today we're talking about a skill that you can practice to put money back
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  in your pocket without getting a second job or cutting back.
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  Sounds like a win-win to me.
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  We're really talking about bill negotiations. So, Kristen, when we talk about
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  negotiation, what are we really talking about when it comes to our bills?
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  That's right, Mindy. When you hear the word negotiation, you might think about
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  times where you've bought a car and done some negotiating or applied for a job
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  and tried to negotiate your pay or salary.
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  And some common forms of negotiation related to bills might happen when you
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  go to the doctor's office or you're calling a hospital about a bill that you
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  have and requesting to set up a payment plan.
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  Other examples include calling your credit card company to arrange a new payment
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  due date Or even filling out a student loan income-driven repayment plan request
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  where you set up and kind of negotiate based on your income how much those payments are going to be.
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  But there's other types of bill negotiations, including negotiating your recurring
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  bills, like your cell phone, internet, cable, or maybe even your insurance.
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  So it really works? Yeah, sometimes it works. And it really depends.
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  And I'll tell you one of the reasons that it does work. And it's because companies
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  really want to keep you as a customer.
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  It usually costs companies more money to find a new customer than it does to
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  keep the ones that they already have.
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  And that's why many companies actually have what's called a retention or loyalty
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  department. And their entire job is to prevent customers from leaving.
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  So that means that they have access to discounts and promotions or special rates
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  that aren't advertised online.
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  So if you've been a loyal customer, especially for several years,
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  you may have more leverage in negotiating those bills than you think.
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  So that's why when you call, let's say, your Internet provider and say,
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  I'm switching to someone new, and they're like, but wait, let me give you this.
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  Or, but wait, you know, for two years, we'll give you a reduced rate.
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  And so that explains why that happens. So what should someone do before picking up the phone?
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  That's exactly right, Mindy. I think we all love to hear the,
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  but wait, here's a special offer.
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  But before picking up the phone, a little preparation goes a long way.
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  So first, you want to know your numbers. So pull up your current bill,
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  find out how much you're paying, what services are included,
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  are you renting equipment, or are there add-ons that you don't use? Yeah.
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  Next, you want to check the competitor prices.
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  So this would require a little bit of research, like looking online and seeing
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  what other companies are offering.
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  So new customer promotions are especially helpful because they might give a
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  really good comparison point in your phone call.
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  And then third, know how long you've been a customer.
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  If you've been with the company for, let's say, three, five or longer years, then mention that.
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  And when you do this type of preparation ahead of time, you'll feel more confident
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  when you actually pick up the phone.
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  Oh, and speaking of advanced preparation, can you help our listeners understand
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  exactly what they need to say when they make these calls? Can we walk through this process?
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  Yes. The good news is that you don't have to be an expert negotiator.
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  You can keep it really simple and polite.
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  Here's a couple of things that you might say. Hello, I've been a customer for
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  five years and my current bill is $120.
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  I noticed another company is offering a similar plan for less.
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  I'd prefer to stay with you. Are there any loyalty discounts available?
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  Another example of something you might say is, I'm reviewing my monthly expenses
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  and trying to lower my bills.
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  Are there any promotions or discounts that you can apply to my account?
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  And then I've got one more example of something you can say.
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  Can you transfer me to your retention or loyalty department to review my rate?
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  If the first person says no, politely asks for someone else that can review your account.
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  Different departments sometimes have different flexibility and things they can
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  offer you. And I think key is that you said politely.
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  Now, if we get all hairy and upset, then we're probably not going to get as
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  far as we will if we're polite. So remember to keep that smile on your face
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  while you're on the telephone, right?
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  Right. So what kind of discounts should people ask about?
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  So sometimes additional savings are available, but only if you ask for them.
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  So you might qualify for things like bundling discounts if you combine services.
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  This is especially true with insurance. If you have renter's insurance and car
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  insurance and combine those with the same company, there might be a bundling discount available.
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  Oftentimes, auto insurance may offer safe driver discounts.
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  There also may be promotions related to paperless billing or setting up auto payment.
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  And then you also want to check into military association or employer discounts that may be available.
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  And how often should someone do this? A good rule of thumb is once a year.
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  So pick a month, maybe January or your birthday month, and review your recurring bills.
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  You'll also want to pay attention when the contract or the promotional rate expires.
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  So you can ask on the phone, is this a temporary promotion? And if so, when does it expire?
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  You don't want to be surprised when the rate jumps back up. So if it's temporary,
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  put a reminder on your calendar to call again before it ends.
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  That'll be the perfect time to call.
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  And what about companies that do the bill negotiation for you?
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  Do you recommend checking them out?
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  So it's true. Some services will offer to negotiate your bills on your behalf,
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  but they usually charge to do that service.
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  So the cost is a percentage of what they save you more often than not.
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  So they kind of take a cut of what the savings would be. So in many cases,
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  this isn't advisable just because it's something that you can do yourself after
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  a 15-minute phone call, and it should be absolutely free for you to make that call.
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  So it might feel a little uncomfortable at first, but like any skill,
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  the more practice you get, the easier it becomes.
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  So using tools like the free bill calendar from Consumer Financial Protection
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  Bureau to track due dates and stay organized will really aid in the whole process.
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  And seeing all of your bills in one place helps you spot opportunities to save.
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  So I think everything that you have talked about today is just going to benefit
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  our listeners and me in a great way. So thank you, Kristen, for sharing with us.
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  Absolutely, Mindy. And if you give it a try, let me know how that goes for you.
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  That's exactly right. So if
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  you are just tuning in, you're listening to MoneyWise on Talking FACS.
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  We are presented by Family and Consumer Sciences Extension in the Martin-Gatton
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  College of Agriculture, Food, and Environment.
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