Tightwad Tuesday: How to Negotiate Lower Utility Costs

Photo courtesy of Salvatore Vuono; FreeDigitalPhotos.net

Unless you are completely off-grid, you've got to pay utility companies for electricity, cable service, Internet service, phone service, natural gas and heating oil.

Several of these bills can be negotiated since different companies are competing for your business:

Check out the competition. 

See what offers you can find available from carriers other than your current one.  Record the offers and who they are from.  It is best to use offers that are not only for new customers when you negotiate with your current company.

Approach your current carrier:

• Express your desire to lower your bill.  You don't have to be secretive or sly about it, just state your intention.
• Ask what their best offer is.  Assume you can do better.
• Present offers from other companies and ask if they are willing to match or beat the offers.
• Once they present their "best" offer, ask for a better one by saying, "That doesn't work for me.  Can you do something better?"
• If the company representative is not giving you what you want, ask kindly to speak to their supervisor.
• Go through the same steps with the supervisor.
• Be friendly and open to walking away if you don't get what you want.  This is an attitude assuming you will get what you are after, not a superior attitude toward the employees.

Remember what doesn't work:

• Demanding to speak to a supervisor
• Nasty, mean, or condescending tone
• Threatening to go to another carrier right away.  Save that one for a last resort tactic.
• Making the call when you are in a rush.  Allow time to be on hold, to discuss, and to hold again.  If you assume and allow for this, you are less likely to get angry for being on hold for lengthy periods.

Revisit at least once a year or preferably, every six months.  I write it in my calendar on the day I make the initial call so that I won't forget and accidentally pay the higher rate when my promotion period has expired.