How to secure lower rates and save money without cutting services

If you’re feeling squeezed by rising prices, you’re not alone. From internet and cable to insurance and phone plans, the cost of everyday services has crept up in recent years.

The good news: Many of those bills aren’t set in stone. With a few smart negotiation tactics, you could shave hundreds of dollars a year off your monthly expenses without cutting the services you rely on.

“Almost every bill can be negotiated,” said Matthew Erickson, founder and CEO of Identiti Financial. “Many people are missing out on a few hundred dollars of savings just because they may lack the courage or patience to make a phone call.” But it’s definitely worth taking the time to ask for a lower rate. “The worst thing they can say is no,” he added.

So, comb through your monthly budget and highlight recurring charges, such as:

• Utilities

• Rent

• Phone and cable bills

• Credit card rates

• Insurance premiums

• Medical bills

You might be surprised by how many “set it and forget it” payments have crept up over time, either due to price increases or unused add-ons.

Ultimately, your service providers want to keep your business. If they sense that you could cancel your service due to the cost, they may be inclined to lower your bill and keep a paying customer.

“You aren’t being difficult, you’re being smart,” Erickson said. “Many of these large companies are expecting negotiations, and, often, the rep you speak to will be trained to offer better deals if you ask for them.”

He added that even a $20 reduction in your bills translates to $240 in savings each year, simply by spending a few minutes on the phone.

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If you think there are opportunities to trim your costs, there are the steps you should take to get the ball rolling and set yourself up for success:

Brush up on the terms and conditions of your service. Understanding how much you’re paying and the terms of your plan will give you a starting point for your negotiations.

You should also note how long you’ve been a customer, your history of on-time payments, and any notable price increases you’ve experienced since signing up. This can give you additional leverage when you call the service provider.

Before contacting your provider, be sure to research competitor packages and pricing. Coming to the negotiation table prepared with solid numbers and a strong case for why they should offer you a lower rate can make all the difference.

For example, if your internet provider charges $90 a month, but a rival offers a $65 plan with comparable speed, that’s valuable data to use in your discussion. This also puts pressure on your service provider to act swiftly before you take your business elsewhere.

If you’re asking for a lower rate due to a recent change in your circumstances, such as a job loss or other financial hardship, be sure to mention this. Many providers offer financial assistance and hardship programs that can provide some relief.

3. Call with confidence (and courtesy)

Remember that politeness goes a long way. The goal is to work with the customer service representative, not against them. A good script might sound like this:

“Hi, I’ve been a loyal customer for several years, but my monthly bill has increased. I’ve noticed competitors are offering lower rates for a similar service. Is there anything you can do to help me reduce my payment?”

This approach shows that you’ve done your homework and opens the door for the representative to offer solutions.

If they can’t make adjustments, ask to speak with the retention or loyalty department — these teams often have more flexibility to apply discounts or offer promotions.

In some cases, your service provider may not be able to provide a lower rate, but that doesn’t mean they can’t offer you a better deal.

For example, in place of a permanent discount, you may qualify for a temporary promotional rate, a one-time rebate or credit, or a better package at no additional cost.

Make sure you receive written confirmation of your lower bill or rebate. This creates a paper trail and ensures that if any issues arise with future bills, you have proof that you secured a lower rate.

If this all sounds overwhelming, apps such as Billshark, Rocket Money, and Trim offer bill negotiation services that simplify the process and negotiate on your behalf.

No matter how you go about it, Erickson said it’s always worth trying. “Sometimes, just hinting that you’re considering a competitor or getting rid of the service altogether can open the conversation for better rates.”

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