Inflation hit 3.7% in August 2023, and while that number might not seem scary, it’s enough to make your wallet sweat. As prices for groceries, rent, and everything in between soar, those monthly bills start feeling like a personal attack. The good news? You can negotiate bills during inflation, from utilities to insurance, and keep more of your hard-earned cash. Let’s talk about how to make that happen.
Identify Bills That Can Be Negotiated
Utilities (Electricity, Water, Internet)
These might seem set in stone, but most utility companies have customer retention programs or hardship plans, especially when inflation bites.
Cell Phone Plans
Carriers love locking you in, but they also love not losing customers. A little negotiation can go a long way.
Insurance (Auto, Home, Health)
Insurance premiums increase during inflation, but you can ask for discounts, loyalty perks, or even shop around for better rates.
Subscription Services
Netflix, gym memberships, even that random software subscription you forgot about—if you’re still using them, ask for a deal. If not, cancel.
Rent
Landlords are also feeling inflation, but that doesn’t mean you can’t negotiate a rent freeze or smaller increases during lease renewals.
Do Your Research (And Use It to Your Advantage)
Local Inflation Rates
If inflation is driving up costs in your area, bring that data to the table. “Hey, I know inflation is at X% here, but my wage hasn’t gone up to match it.” Use sites like the Bureau of Labor Statistics to pull your local inflation rates and throw them into your argument.
Competitor Prices
Compare the prices from competitors. Whether it’s an internet plan or an insurance quote, competition is your ally. No company wants to lose a customer to a rival.
Know Your Rights
Some contracts (like rent or utilities) have legal limits on how much they can be increased during certain conditions, such as a declared state of emergency. Check local laws to see where you stand.
Leverage Loyalty and Hardship
Loyalty Discounts
Many companies offer loyalty discounts, but they won’t just hand them out—you have to ask. Tell them you’ve been a loyal customer for X years and are exploring other options unless they can reduce your rate.
Hardship Programs
Companies also provide hardship programs during periods of economic stress. Utility companies, for instance, often have reduced-rate plans for customers struggling to pay their bills.
Be Ready to Walk Away
Call Their Bluff
If a service provider won’t budge, be prepared to take your business elsewhere. Sometimes, just the threat of canceling is enough to bring down that monthly payment.
Explore Alternatives
For example, if your internet provider won’t lower your bill, consider switching to a local ISP or downgrading your service. With things like auto insurance, new online insurers (like Lemonade or MetroMile) are shaking up the market with competitive rates.
Practice Negotiation Techniques That Work
Be Polite But Firm
There’s a fine line between asking for a better deal and demanding one. Be polite but don’t shy away from asserting your need for lower costs.
Use Scripts
Have a plan. Here’s an example for negotiating your cell phone bill:
Hi, I’ve been a customer for X years and I’ve noticed my bill has increased by X% recently. I’m wondering if there are any promotions or loyalty discounts available to bring it back down. I’ve seen competitors offering lower rates and I’d prefer to stay with you if you can match that.
Stay Calm and Be Ready to Walk
Losing your cool won’t help. Stay calm and patient—companies train their reps to handle disgruntled customers. If they don’t meet your request, politely tell them you’re exploring other options.
Don’t just “take it”
Inflation isn’t going anywhere fast, so now’s the time to sharpen your negotiating skills. By identifying negotiable bills, leveraging loyalty, and using smart research, you can cut costs and keep more of your hard-earned cash. Don’t be afraid to push back on rising costs—remember, no one’s going to give you a discount unless you ask for it. It’s your money—fight for it.
