The rising costs of utility bills are causing some to rethink the idea of homeownership altogether. Many are re-examining their rental options, and in some cases, moving back in with their parents to minimize their bills. However, you don’t have to give up your freedom or privacy just to save a few bucks. There are plenty of tricks you can use to negotiate with your utility providers for lower bills.
[Read: 8 Ways to Avoid Being Disappointed About the Condition of Your New Home.]
Common Negotiation Tactics
Most utility companies expect their customers to negotiate. Their business model accounts for this by maintaining relatively high price tags on the services rendered — until you ask for a better deal.
— Threaten to cancel. Not only is this one of the most common negotiation tactics, but it’s also one of the most effective. Utility providers never want to lose customers, so most will be willing to work with you by providing steep discounts, fee waivers and other perks.
— Use low-ball offers. Don’t be afraid to put your own offer on the table. They might reject it, but that’s the worst they can do. You’d be surprised at some of the offers a company is willing to accept in the name of customer satisfaction.
— Take advantage of bundled savings. Many utility companies offer multiple services that are available in package deals. This is a great way to save money on your monthly utility bills, and it’s the perfect option for those who prefer the non-confrontational approach to negotiations.
— Compare their service to competitors. Never hesitate to compare their services — including the costs — to a competing company. An accurate comparison will take some prior research on your part, as you’ll want to quote exact prices and deals, but it has the potential to save you a lot of cash on your monthly utility bills.
As useful as these strategies are, it’s important to know what bills are negotiable and which are not. This can be difficult, since much of this depends on your specific region and, in some cases, your exact neighborhood. However, some utilities are better known for their ability to compromise than others.
[Read: 8 Things You Can Learn From a First-Time Homebuyer Boot Camp.]
Typical Bills That Are Negotiable
The majority of your bills are negotiable to some extent. Some exceptions do exist, especially when you’re locked into a certain company due to regional availability, but even many of these service providers embrace the art of negotiations.
— Telephone. Consumers have been negotiating telephone bills for decades. What started with landline phones has been all but replaced by cellphones, but the idea remains the same. Cellphone service providers often adjust bills and modify payment plans to fit their customer’s needs, so this is one of the first places consumers look when trying to lower their monthly bills.
— Internet. Your internet bill is also highly negotiable. Most new customers will sign up for a company with the promise of huge discounts for a specified period. Once the deadline is up, however, many are faced with escalating payments that can quickly grow out of control. To prevent this, call your internet provider and begin the negotiations — most will be more than willing to work with you.
— Cable television. Again, consumers have been working with customer service and retention departments for decades to achieve lower cable bills, and many have received satisfactory results. If you’re not one to negotiate, there are also several third-party options available to get the job done.
— Monthly rent. You might not think of your monthly rent payment as a negotiable bill, but some renters have plenty of leeway and flexibility in their payment arrangements. Depending on when you move, you may also get a discount. As real estate service company Triple Crown Corporation notes on its website, “Because so few people move during the wintertime, landlords and property management companies often offer specials or are willing to negotiate.”
As a consumer, never hesitate to ask your utility and service providers for a better deal. You might run into that stubborn customer service agent or company that simply refuses to budge, but most will find the process of lowering their bills is straightforward and painless.
[Read: How Much Should You Spend on Big-City Rent?]
The Modern Consumer Advantage
The average consumer holds more power during negotiations than they’re even aware. With greater competition in nearly every utility market, and with more homeowners willing to relocate to find a better deal, many of your bills are more flexible than you think.
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High Bills? The Best Practices for Negotiating Home Expenses originally appeared on usnews.com
