Never Say Yes First Time

Of all the principles we shall look at, this one is the simplest and probably the most effective. Remembering this will save you money and increase your profit on every single deal you make.

This principle should be a reflex action. I was co-presenting at a seminar in a large room at Heathrow. One of the other presenters asked the delegates this question: 'How many of you here never pay the full rate for hotel rooms?' About one-third of the room raised their hands. That means that two-thirds were regularly paying too much for overnight stays.

A friend of mine was staying away in a hotel to prepare for a new seminar he was writing. The hotel was one of a nationally recognised and reputable chain, located in Milton Keynes. He simply asked, 'What is your best rate?' and managed to negotiate from an offered rate of £120 down to £78 per night. Never say yes first time.

What about when you buy advertising? Did you know that you should never pay the full rate? Agencies usually claim 10 per cent, and you can use that fact to get 10 per cent reduction straight away. Call some advertisers to see what response they have achieved, and use that information to lower the magazine's aspiration. You can even send a cheque for half the rate, and say, 'Feel free to cash my cheque when you place my advert on the inside back cover.'