Shopping

Step one: Get informed. Find out the recommended retail price of the item (RRP). Otherwise you are vulnerable to canny sales assistants who will bump up the price once you start haggling, only to knock it down to the 'bargain' price equivalent to the RRP.

Step two: Timing is everything. Never haggle when there is a queue, make the sure the shop or showroom is quiet. If it is a big-ticket purchase, think carefully about the day you make your purchase.

If it is a car, for example, a salesperson may not let you haggle him down much at the beginning of the month because he is at the start of his commission cycle. By the end of the month, however, he is probably getting concerned about his overall sales totals and will be keener to close a sale.

Some travel agents also have a flexible pricing approach which means they have to sell a certain number of holidays a week. Be patient and test the water on different days.

Christmas is probably the worst time to try haggling for items such as mobile phones or electrical goods, and this year there were so many reductions anyway that it hardly seemed worth the grief. But after Christmas? Well, now may be just the time to polish up your bargaining skills.

Step three: Be nice. Being confrontational or rude will get you nowhere. Be jovial, maybe a little cheeky and build a rapport with the shop assistant. For example, many specialist electronics stores are manned by gadget experts, so get into a discussion about the item and make a connection before starting to haggle.

Open your negotiations with something simple such as: "I like this DVD player, but I don't like the price." You could even use the standard haggling tool of quoting a cheaper deal elsewhere and asking them to beat it.

If the original shop assistant can't give you a discount, ask who can. Ask them to get this person for you and maintain your rapport with your first contact.

Step four: Keep it flowing. Open up the process by offering a low price for the goods. Never say: "What is your best price?" The haggle would end before it even got started. Don't keep on chatting nervously - give them time to respond. If the reply is: "We don't do discounts”, don't be put off. Keep chatting – you might have to ask three times before you get some money off.

Step five: Read the signals. Sometimes the store may genuinely not be in a position to give you some money off, but you should still try to get something else thrown in, such as a few free DVDs to go with your new player.

Alternatively, they may be able to upgrade the item, especially if it is a PC or laptop, so you could end up paying the same price for a better machine.

Step six: Find a friend. A great way of getting money off a major purchase is to link up with friends. After asking for the usual price, ask the salesperson the price for two, or even three. Many salespeople feel obligated to lower the price each time you add a unit.

Step seven: Be prepared to walk away. Remember the seller does not owe you a favour. Always keep your cool, enjoy the process and above all keep your sense of humour.