Easy does it in bargaining

Haggling is all about negotiation and this is something we do every day. Parents negotiate with their children. Employees negotiate with staff.

In the movies good negotiators are often tough and may yell. In real life, a competitive approach often won't work.

Collecting your facts is crucial. If your financial planner wants to charge you 1 per cent per annum on your funds, work out what that will cost you over one, two, five, 10 and 20 years and how much it will eat into the growth of your investments. Now you've got hard cold facts to negotiate with.

Other tips include:

* Work with your counterpart, not against them.

* Smile, compliment your opponent and crack a joke if appropriate. * Don't become adversarial.

* Anticipate the other party's moves.

* Listen, don't just think of your next move.

* Take a position at the beginning but be willing to move.

* Don't be obsessed with winning.

How you negotiate depends on the length of the relationship anticipated. For a long-term relationship you need to take great care. But if you're visiting a lawyer for a one-shot house purchase, you might want to go for broke.