I have run a successful training company for over 10 years and one thing puzzles me more than anything else. Out of hundreds of quotations to clients, I have only been asked to negotiate on my prices a couple of times. Even then, when I say that I can't discount my prices, the response is usually 'Well, I had to ask', before they go on to buy at the full price.

On the other hand, I rarely pay full price for anything and it usually takes less than a minute to obtain a useful discount. Prices for goods and services are not set in stone. Sellers price their wares at the price they would like to get. Invariably, they will accept less, especially in the current economic climate. I recently got a £50 reduction in the price of something in only 30 seconds. That equates to earning £6000 per hour, tax free!

Here is my formula to get them to drop the price in less than a minute. It does not work all of the time, but it does most of the time.

Stage one is to apply some subtle flattery. This needs to be sincere, which is not a problem. If you want to purchase something, you obviously like it enough to want to buy it. So take the time to inform the seller why you like the product. We all respond to positive feedback and it makes the seller feel good about himself and also about you.

Stage two is to give your problem to the seller. Tell them that although you like their offering, you just don't have the budget to buy at that price (explaining why is optional). Then ask if there is any chance of them doing something for you on the price. Because they like you, the chances of them moving are increased dramatically.

I recently bought some advertising space. I chose the provider because their website was the most professional and appropriate for my product. The cost of placing an advert for 6 months was just under £50. However, if I wanted to include my logo in the advert (which I did), that cost an additional £50. I rang the advertiser, told him that I really liked his Website and commented on how professional it looked. I then stated that I really wanted to advertise with him, but because the advert was for a new business, I could not justify the additional £50 for including my logo. I asked him if he could do anything for me on the cost of including the logo. Immediately, he said that he would include the logo for free and also offered me a complimentary press release statement for my product on his homepage.

This was a good deal for both of us. He generated goodwill with me by including my logo for free and I'll definately consider advertising with him again in 6 months time.

So, this simple two stage approach works, but don't try it next time you are buying a can of beans from the supermarket!