How to Save Money with the Cash in Hand Method

Did you know that buying with cash can actually save you money?

The old saying, “Money Talks” has never been truer than in today’s economy. Even big name retailers are open to negotiation; their sales are down and more people than ever are buying on credit. The holiday season is coming up and stores are desperate to make their sales quotas.

We recently bought a used refrigerator and a gorgeous, new, recliner sectional couch using the Cash in Hand Method. Our savings were substantial. I’ll walk you through what steps we took and maybe it will help you save money too.

First, we saved up the cash. Well duh! This may seem like a no-brainer but it really is the basis for the whole idea. A debit card won’t work the same and neither will a check. On the day you are prepared to buy, you must have the cash in hand. You won’t believe how salespersons eyes will light up when you start waving those greenbacks around.

Do your homework before the day that you are prepared to buy. It’s imperative to know exactly what you want. You should have a first choice in mind and an alternative if the first choice isn’t available. Do some research on the cost of the item and be prepared to offer a fair price.

Be ready to walk away. This is very important. No matter how much you want something, you must be able to walk away when the salesperson won’t bargain with you. There are other stores that will.

Have confidence. You are the one with the money. Money is power. Don’t let a salesperson follow you around asking questions. They are trying to feel you out so they can use their special sales tactics. The best thing to do is check out the store beforehand and know exactly what you want and where it is located. Then you can go right to it and start your negotiations.

When we needed a second refrigerator, we shopped all the second hand stores within a 40 mile radius. We knew we wanted a side by side with water in the door and an ice maker. Prices ranged from $250 for well used piece of junk to $800 for an almost new model. We found a gently used one that fit our needs. They were asking $450. We offered them $300 cash with tax included and we would pick it up. The deal was done so fast that we were asking ourselves if we should have offered them less. We paid a flat out $300 and saved $150 plus the taxes. The refrigerator works great and we love it because it was worth it.

Shopping for the sectional couch was a little more difficult. There were so many choices. We decided we wanted a sectional couch that had at least 2 recliners and we did not want leather or vinyl. We wanted it to be brown or tan. It had to fit our budget and our living room. While we were saving the money for the couch we were looking around. We looked online too. We compared prices and styles. We decided the maximum amount we wanted to spend was $1800 total.

When the big day came, we found our couch in the second store we went into. Our hearts fell when we saw the price tag of $2199. We were immediately discouraged and left the store. We spent the rest of the afternoon looking around at other stores. Nothing came close to the couch we had already fallen in love with. So, we gathered our courage and went back to the second store. We offered the salesman $1600 cash. That was the best we could do. It was late in the day, he wanted to make a sale and we could tell that he was salivating over all that cash. When he hesitated, we said thanks anyway and started to leave. Then he was ready to deal. With taxes and delivery charges our couch came to $1773.

We’re very proud of our new couch. It’s our first major purchase as a married couple and will be used for many years to come. We’re glad we saved up the cash and were able to get a good deal. If we had bought it on credit or made payments, the price would have been more than double what we paid.

If you are planning on buying any bigger ticket items, say anything over $100, give the Cash in Hand Method a try. You might be surprised at your savings. Note that this approach can work with smaller ticket items as well.

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5 Responses to How to Save Money with the Cash in Hand Method

  1. Rob says:

    Have you had any experience with this in a major retailer? Or just second hand shops?

  2. M. Beddingfield says:

    Hi Rob, the couch was bought at a major chain retail store. Sometimes you can dicker with them and sometimes they don’t have much room to bargain, but you will never know unless you try.

  3. Alain Theriault says:

    Wow that’s was a great article and great advice. That’s a really cool trick. So you have to show them the money to kinda prove them that’s all you have.

  4. Maybe this is common knowledge to everyone else, but it was news to me that you’re *supposed* to bargain for beds. Even at the biggies like Sleepys and Macys (am I allowed to name stores?).

    But there’s one thing about your article that I really don’t understand (I’ve never worked in retail, which might explain my ignorance): why is it appealing to major retailers to be offered a cash sale? That saves them, what, 1-2% in credit card fees? Yet you’re expecting a bigger discount than that for this type of transaction.

  5. Carol says:

    But there

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