How to negotiate your way to cheaper bills

You don’t need me to tell you how much bills are going up by, or how much food is still going up.

Even when inflation comes down to normal levels, we will still have inflation, so everything will still go up, just slower.

So how can you minimise how much you spend each month without going without?

You negotiate your bills down as much as you possibly can.

Brits aren’t great hagglers. Many of us don’t even like talking about money, let alone haggling.

We must take inspiration from our European or North African cousins for whom haggling is part of life.

It can not only be immensely satisfying, but it can also be very effective at saving money.

Here’s how.

5 tips to lower your bills without cutting services

Depending on when you’re reading this, it is possible to negotiate your insurance, broadband, mobile phone and TV easily.

Energy isn’t so easy as there isn’t as much competition around right now. In fact, at the time of writing (April 2023) there is no competition in the energy market.

Switching could actually cost you money.

That will change of course and if you’re reading this in a few months’ time, use the same principles here to negotiate your energy bills down too.

1. Assess what you have and what you need

Your first task is to figure out what you have and what you’re going to need.

For broadband, is your current deal fast enough or do you need more or less speed?
Do you need so much data or the newest mobile phone?
Do you need the movie or sports package on your TV contract?
Do you want more for less or less for even less?

You should ideally answer these questions before you begin haggling so you have a goal in mind.

For example, if your broadband speed is plenty fast enough, you can haggle a cheaper price.

If it isn’t fast enough, you could haggle more speed for the same or lower price.

If your aim is to lower outgoings as much as possible, ask yourself ‘what’s the minimum I need without compromising my way of life?’

Next, check where you are in your contract.

Haggling is only effective when you’re coming towards the end of the fixed part of your contract.

It is then you could leave the provider so is when you have the most bargaining power.

If you’re mid-contract, you could leave if you wanted, but you would probably face early termination fees.

2. Compare the market to find a better deal

Comparison sites have done more to shake up the domestic market than anything else I know.

There’s nowhere for providers to hide. Their prices are out there for all to see and we can see in black and white how much each charge and what they offer.

Taking the goals you set in step 1, use comparison websites to see what’s available.

Use several sites as not all of them cover the whole market.

3. Call your current provider to negotiate

Now comes the fun part, the haggling. You know what you have and what you need. You now know what’s out there in the market.

Now it’s time to use that knowledge to your benefit.

Call or use web chat and tell the agent you’re planning to leave as other providers are offering cheaper deals.

Chances are, you’ll be put through to customer retentions to try to persuade you to stay. They have a lot of power to offer incentives to keep you as a customer.

It’s cheaper for them to keep customers than set up new ones, so there’s a lot of scope.

Be calm, be nice, be polite. But also be firm.

Tell them what you found, what you’re paying now and that you’re planning to leave.

You don’t have to really be planning to leave but we want the provider to think that…

Ask them if they can better the cheapest/fastest/best deal you found.

4. Never take the first offer

If you have ever sold a car or a house, this is the same. Never accept the first offer as nobody offers their best price up front.

With service providers, they will often try to get you to spend more or upsell you to a larger contract, perhaps for the same price or a little more.

We want to spend less, so unless you need those things being offered, politely turn down that offer.

Tell them you found other providers offering contracts for less and your main aim is to save money.

Give them an opportunity to make another offer.

You may have to be insistent on wanting to save money but keep calm and stay polite. You really will get the best out of the agent if you do this.

Remember, even if they say no or goodbye, you have found a couple of deals you could switch to with zero effort on your part.

You have nothing to lose.

I do this every year or 18 months depending on the contract.

I’ll do my research, find out the best option for my needs and negotiate with my current provider.

Sometimes they made a sensible offer on the phone after haggling.

Other times I have said I was leaving and ended the call (politely of course) only for them to call me the next day with a much better offer.

Hold your nerve and see what patience brings.

5. Switch or stay

Now it’s decision time. Depending on the offer made by your provider, you need to decide whether to stick with them or switch to another.

Switching for most services is effortless, so don’t let change stop you switching if it’s the right decision for you.

If your current provider made a good offer and you want to accept, do it.

Confirm your acceptance, sign the contract and enjoy lower bills, faster speeds, more data or features, or whatever your goal was.

Haggling can save you money

Brits are a little hesitant when it comes to haggling and that needs to change.

You can still be polite and still be British about it but you can also use your power as a customer to get a better deal.

Providers are in business to make a profit. Your job as a customer is to make sure they don’t make that profit too much at your expense.

Follow these tips and you could substantially lower your outgoings. That has to be worth stepping out your comfort zone, doesn’t it?

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