Diana Clement: It takes a bit of cheek ...

Mention the word "haggling" and most people think of Third World markets or, at best, buying a second-hand car.

But virtually everything we spend our money on is negotiable and you can save hundreds or thousands of dollars a year by simply asking for discounts. Most people don't ever think to haggle with their accountant, estate agent, financial planner or insurance company. Yet ask these professionals and most will admit having dropped their fees for clients they want on board.

Bargaining doesn't come easy to New Zealanders. If you played Monopoly as a child, you've bargained. And what happened the last time you went to buy something and found yourself short on loose change? The likelihood is you probably got the item for the money you had.

Some of the easiest items to bargain on include:

* Houses

* Professionals' fees

* Hotel rooms

* Private hospital fees

* Gym memberships

Hotels, retailers, banks and other businesses have different rates for different people. Next time you're asked, "What rate did we quote you?" answer, "What's your best rate?"

Other one-liners to keep up your sleeve include:

* What's your corporate rate?

* I can't quite afford it, can you drop the price?

* What's your price if I stay two nights [or buy two]?

* Will you sell it to me for X?

* If I buy it, can you throw something in for free such as [X]?

Or just suck air through your teeth in the way the plumber does when you ask how much it costs to unblock your drain.

If you're worried that you'll get poor service if you bargain over your finances, don't. A good professional such as a financial planner won't give you second-rate investment advice just because you negotiated over their fees. It's not in their interest to treat you second-best as their best form of new business is by referral.

It's important when bargaining to make sure you're dealing with someone who has the authority to drop prices. Ask for the manager or to speak to head office on the telephone.

Sometimes there are discounts for belonging to organisations. Using middlemen such as insurance brokers, mortgage brokers and financial planners can be an excellent way of getting a better price.

Although you can bargain anywhere, you might want to ration your energy. I, for one, prefer to negotiate with big business, not local shops as my ethics say the latter may not have the margin to take the price reduction I want. Nor do I remember with pride the bargaining I did from one end of South America to the other when just out of university.

A few dollars here and there won't make a huge difference to my family's bottom line. However, consistently haggling on big-ticket items and financial services will pay off.

Accountant Michael McCook saved $7295 on a new car by having the gall to bargain.

The effect of compound interest means that sum of money invested conservatively at Superbank's present rate of interest of 6.7 per cent would be worth $13,953 over 10 years and $26,688 over 20 - all for having the cheek to haggle.

Haggling in shops - or "bare-faced chic" as I call it when trying to get boutiques to drop their prices - is always possible. Oddly enough, items already on sale are the easiest to haggle over. Generally, the shop wants to get rid of them to make way for next season's stock.

Whenever you bargain, think carefully about how you present yourself. If haggling at a garage sale, don't park your Mercedes outside and don't look too well dressed. If, however, you want your bank's mortgage manager to cut his rate to the bone, turn up looking and sounding like someone who will be back with repeat business.

FINE ART OF HAGGLING

When accountant Michael McCook goes to the ASB for a mortgage on one of his rental properties, he steps through the door ready to haggle the rate down from the standard one offered by the bank.

"Even if it is point five of 1 per cent that I get off I feel like Tarzan swinging through the trees," he says.

When McCook went looking for a new car for his business, Accountability, in February he managed to squeeze the price of the Hyundai Santa Fe he bought down by $7295 by employing an experienced negotiator to negotiate with the Hyundai dealership.

The Greenhithe resident always bargains hard when buying investment properties.

"Knowing what you are prepared to pay is a big thing. If you have that vibe around you, the salesman will pick up on it and nine out of 10 times you will get what you want."

* Recommended reading: Getting to Yes: Negotiating Agreement Without Giving In - by Roger Fisher. $30 at Whitcoulls.