Case in point: I am staring at a check for $399 that I just received in the mail from an ADT Home Security independent contractor called Defender Direct, Inc.
When I decided to install a security system late last year, I did some research and found that I could either buy directly from ADT, which would have required me to purchase the system from them at a cost of about $850, but pay only about $25 a month in monitoring fees. In the alternative, I could buy from the independent contractor, who would give me the identical system for free plus give me a $99 "rebate," but charge me $45 a month and require a three-year contract. Adding it up:ADT directly = $1750 over 3 years
contractor = $1519 over 3 years
Still not an easy choice: Although the contractor was cheaper up front, buying/installing through ADT directly seemed like a less risky option than the contractor (even though, as confirmed by ADT, an "authorized" one).
So I called the contractor to tell them of my decision to go with the ADT direct option... and they offered me 3 months free service. I hesitated, tapping on my calculator; their new offer brought the 3-year price down to $1384. I can tolerate a lot of risk to save almost $400. After I told them I still would go with ADT, I was transferred to a supervisor, who offered to give me six months free service (which eventually became "an even $300" or almost 7 months free service). Total price over 3 years: $1219, or a savings of $531 over ADT direct. And ADT provides the monitoring service either way. (Defender Direct makes its money by selling my contract to ADT, presumably for some amount well over $1219! It's win/win for everyone!)
Best of all, at the end of my three year contract, I can "switch" services back to ADT directly, and pay only $25 a month (or even shop around and try to find a cheaper monitoring service; I own the equipment even though it was free to me!)
ooooo, you're good!!
ReplyDeleteThat stresses me out even reading about that much negotiation. I could barely handle bargaining the mattress seller from 150 to 125; I had Chip ask for me.
ReplyDeleteIn this kind of market, the negotiations do themselves. Seriously; entry-level negotiations is to just express hesitation. Tell the seller you are interested, but it is just out of your league--they will offer. Second entry-level-negotiations lesson: play them off each other. Get a price from seller #1. Get a price from seller #2. Whoever is higher, go back to and say, Would you be able to match the other seller's price? Easy-peasy. You can do it in a way that doesn't risk offense. (And even if it offends--who cares? Any "offense" is likely a negotiating tactic.)
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