#562: The Secret Psychology of Successful Negotiators, with Matt Schultz

More than 90 percent of people who ask to get their credit card annual fee reduced are successful. Yet most people never ask.

Why? They assume the answer will be no.

Matt Schultz, the author of “Ask Questions, Save Money, Make More,” joins us to explain the psychology and tactics behind successful negotiation.

The key insight: companies want to keep your business. Banks, employers, and service providers invest in long-term relationships because it’s more profitable than constantly finding new customers.

This gives you more leverage than you might think.

For credit cards, Schultz points out that calling the retention department directly (rather than general customer service) often leads to better results. He shares his own experience of getting his $600 annual fee cut in half just by making a yearly call.

With mortgage negotiations, Schultz suggests getting quotes from 3-5 lenders on the same day, since rates change frequently. A quarter-point rate reduction on a $360,000 mortgage saves $20,000 over the life of the loan. The fees themselves can differ by $5,000 between lenders.

When it comes to workplace negotiations, Schultz recommends keeping a weekly log of your accomplishments. Note both your regular duties and times you went above and beyond. This creates a strong foundation for salary discussions.

The most effective negotiations frame requests as win-win scenarios. Instead of just asking for tuition reimbursement, explain how additional education will help you contribute more to the company. Rather than demanding a lower rent, offer to sign a longer lease that reduces the landlord’s vacancy risk.

Schultz emphasizes building relationships during negotiations. The person at the call center has likely dealt with angry customers all day. Being pleasant and making a human connection can lead to better outcomes.

The interview also covers negotiating with family members about money, choosing when to negotiate versus pay full price (like at charity shops or with small businesses), and how to time requests effectively.

The common thread: success comes from understanding the other party’s interests and finding ways to align them with your own.

This episode will show you how to save hundreds — or thousands — in your regular spending, simply by asking.

Timestamps:

Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths.

0:00 Intro: Most people fear asking for discounts/negotiation

1:37 Keep weekly notes of work accomplishments for better negotiations

3:38 Companies want long-term customers – use this as negotiating leverage

6:04 Credit card fee negotiations – 90% success rate when asking

8:36 How to negotiate mortgage rates and compare lender quotes

13:15 Open-ended questions get better results than yes/no questions

19:41 How to handle pushy mortgage reps who bash competitors

26:41 Tips for millennials who hate phone calls but need to negotiate

31:17 Framing tuition reimbursement as benefit to company

39:19 Building rapport during negotiations vs being aggressive

44:42 When to walk away from difficult negotiations

49:20 Negotiating with small businesses vs large corporations

54:53 Red flags in workplace negotiations

58:38 How companies signal if they value employee growth

1:06:38 Final thoughts on customer lifetime value and negotiating power

Thanks to our sponsors!

Policygenius
Go to policygenius.com for free quotes and comparisons across many insurers. With Policygenius, you can find life insurance policies that start at just $292 per year for $1 million of coverage.

NetSuite
NetSuite is the number one cloud financial system, bringing accounting, financial management, inventory, HR, into ONE platform, and ONE source of truth. Head to NetSuite.com/PAULA  to download the CFO’s Guide to AI and Machine Learning.

Source: Afford Anything