| What is the difference between what you want | | | | example, instead of going out to the store and |
| and what you need? What you need is money | | | | buying expensive Xmas and birthday presents, |
| for food, shelter and clothing. It does not mean | | | | why not start making your own? I have a friend |
| food in a restaurant, it does not mean frozen | | | | who has a large family and at Xmas time, they |
| food, or ready-made meals or gourmet foods. | | | | pull one name out a hat and you only make or |
| Shelter is anything that will get you out of the | | | | buy a present for one person. That saves a lot |
| cold or the heat - regardless of how cramped the | | | | of money too. |
| quarters are, a safe place to live, just so you are | | | | To sum up wants and needs: |
| not out on the street. | | | | You NEED: food, shelter and clothing - everything |
| And clothing - if you have clothing in your closet, | | | | above that is a WANT. E.g. a big house, designer |
| no matter how many years old and it still fits you, | | | | clothes, fancy foods, a new car, electronic goods... |
| that's your basic clothing. You don't need to go | | | | How can you have more of the things that you |
| out and shop for more clothing, and you certainly | | | | want? |
| don't have to have designer clothing. | | | | By becoming a smart shopper. |
| What I'm going to show is a blueprint. We'll start | | | | The economy is going down, the competition is |
| out with the extreme circumstance. The extreme | | | | fierce. As conditions worsen and as competition |
| kinds of budgeting. If you have more money at | | | | increases, the smart businessperson will adjust |
| your disposal and you are not incurring credit card | | | | their prices accordingly, and the smart negotiator, |
| debts, then you can use some of that money to | | | | the smart consumer will look around and shop for |
| relax some of the standard of living that a | | | | better prices, and try to get a better deal before |
| recession or a depression forces us into. | | | | buying. |
| You may want a very big house, but do you | | | | For example, in my home town, computer repairs |
| really need it in this economy? Can you stay in | | | | are quite expensive. However, I noticed a new |
| the house you are in, or if your mortgage is too | | | | computer company advertising their services for |
| onerous for you to handle, perhaps you could | | | | half price and nights and weekends are being |
| consider downgrading and moving to a smaller | | | | offered at the same price as normal business |
| house? | | | | hours. |
| I had to grapple with this issue myself a couple of | | | | I know a lady who has a computer servicing |
| years ago when I wanted a bigger house and I | | | | business and all of a sudden she has no clients. |
| was all set to buy one - it was a lovely house and | | | | They don't need computer repairs and servicing |
| was everything I ever wanted and I didn't buy it | | | | any more - they're economizing. So she will have |
| because I saw signs that the economy was | | | | to reduce her rates and advertise herself |
| turning. I had to wrestle with myself with my | | | | differently in order to create customers. |
| wants and needs. I am still living in the same | | | | People are being held hostage to a lot of different |
| house, it's a bit cramped, but it's mine - and | | | | kinds of companies and they think that they don't |
| someday if the economy turns around and the | | | | have options. But they certainly do. And with the |
| money is there and that property comes back on | | | | downturn, businesses have to be much more |
| the market, maybe then I'll move - or maybe I'll | | | | creative in their marketing and they have to be |
| have just become accustomed to less space. | | | | willing to negotiate on price. |
| Do you want or need a luxury car? Could you | | | | We will be seeing more and more businesses |
| make do with something that gets you from A | | | | offering special deals and using new marketing |
| to B? | | | | techniques to attract our business. So this is a |
| Do you want or need more clothing or an extra | | | | great time to improve your negotiating skills. |
| piece of jewellery? What is it that you do need? | | | | How can you negotiate a better price? |
| You may say that you need things for business, | | | | Buy in bulk and buy when it's on offer. Even if it's |
| for example, better clothing. But do you really | | | | not on offer and you are buying a large quantity - |
| need more clothing or could you buy clothing | | | | e.g. envelopes, tins of beans, whatever it is - |
| more cheaply? | | | | always ask for a discount. I had to walk my own |
| Ladies, how many pairs of shoes do you actually | | | | talk this week in a local discount stationery store. |
| need? | | | | I was buying 50 envelopes and a few other things |
| While some books are wonderful to own, must | | | | and I asked the assistant for a discount. He flatly |
| you own all the books you read, or can you get | | | | said that they did not offer discounts unless you |
| some at the library? | | | | spent at least $1000. So I asked him to call the |
| How often do you go out to eat? What kinds of | | | | manager who did agree to a discount. It is always |
| restaurants do you go to? Can you cut back on | | | | worth trying and usually will save you some |
| the number of times you entertain or go out to | | | | money! |
| dinner? Can you cut back on the types of | | | | Ask for an extra e.g. I bought an alarm clock - it |
| entertainment you go to? | | | | was reduced from $35 to $29 and she wouldn't |
| Everyone nowadays seems to love everything | | | | reduce it further, but she threw in two batteries |
| electronic. Do you really need all those electronic | | | | which would have cost $10.00 |
| toys? How fancy does your computer have to | | | | Shop on days and at hours when trade is slow |
| be? How much of a sound system do you need | | | | In vegetable and flower markets, shop late in the |
| to enjoy your music? Can you do these things | | | | day when vendors want to get rid of perishables. |
| more cheaply or relinquish them altogether when | | | | If you cannot come to an agreement, try holding |
| necessary? | | | | out the money in cash that you are prepared to |
| It's better to know what your options are to | | | | pay - the sight of cash is very powerful. |
| conserve your assets rather than wait around | | | | Be prepared to walk away - don't be attached to |
| and some day maybe have to give them up | | | | the deal. |
| altogether. | | | | When I had my property investment company in |
| Right now, while you still have a choice, if the | | | | the UK, I had to negotiate on every property |
| economy is affecting you adversely and you are | | | | that I bought and sold. I had to negotiate with |
| being forced to reorganize your priorities, you | | | | banks and finance companies to get the best |
| would be best served by taking a look at what | | | | mortgages, I had to negotiate with lawyers to |
| you have, what you are willing to give up and | | | | get the best representation for the contracts I |
| what you are willing to economize on. | | | | entered into. If you are in business, you can |
| So if you are ever in a position where you have | | | | expect your customers to negotiate with you, |
| to give up something or everything, it will be less | | | | and in this downturn, if you are not willing to |
| painful. Any by economizing now, when you are | | | | negotiate you might lose the sale. |
| not being forced to do it, you will end up with a | | | | For example, there was a woman in the US who |
| plus in your savings account. | | | | wanted to buy a new Honda. She had been told |
| Many people just want to get away from it all | | | | that if pushed to the wall, a dealer is allowed to |
| and they go on holidays that they can ill-afford. | | | | give up to 20% off on the sticker price. They |
| When they come back nothing has changed in | | | | don't like to do it, but they will do it - especially |
| their lives, except now when they come back | | | | when they have no sales. She called this company |
| from holiday they have less money than when | | | | and tried to negotiate with them - they said: "it's |
| they started. If you are going on holiday, make | | | | not our philosophy to discount our cars. We will |
| sure you can afford it and there is still going to be | | | | not negotiate. |
| money for you when you come back. | | | | So she went elsewhere. She ended up buying a |
| Everyone needs a break in their routine. It doesn't | | | | car, getting her 20% discount from another |
| mean you have to spend money to take that | | | | dealer that didn't have a philosophy of no |
| break. Take advantage of the free things that | | | | negotiation. If you don't get emotionally attached |
| are available to you - walking, cycling, fishing, free | | | | to what you want to buy - and a car is one of |
| concerts, art galleries, museums. | | | | the examples of where people do get attached, |
| For entertainment, instead of going out and | | | | you will be able to get a good deal. What often |
| spending money on entertainment - how about | | | | happens, is that people often get emotionally |
| having people over to your home, or you going | | | | attached to big ticket items e.g. a car, a house, a |
| over to their home and playing cards or board | | | | boat. Always remember, if one company doesn't |
| games? There are many ways to relax and have | | | | want to deal, there's always another company |
| fun with other people that don't cost you a cent. | | | | that will. Just keep looking. |
| In an economic recession, people get more | | | | So there is a middle road between wants and |
| depressed more easily so they need a little lift | | | | needs in the economy. Maybe you can have |
| from time to time. However, there is no reason | | | | more of what you want if you become a better |
| to think total depression at the thought of having | | | | shopper. But at the current prices, it is essential |
| no money, no entertainment and nothing to break | | | | that you separate your wants and your needs. |
| up the doom and gloom when there are plenty of | | | | So if you are a smart shopper and can negotiate |
| free activities to do. It requires friends and family | | | | much better prices, you might be able to afford |
| to pull together to do things that are enjoyable to | | | | one or two of your wants. But if you aren't an |
| lift one another's spirits. | | | | informed shopper, then I would suggest that you |
| Learning how to economize can be enjoyable. For | | | | stick to your needs. |