Beer Day

Posted by Tim Stobbs on July 8, 2009

Today in honour of a good beer that is waiting for me to drink it there will be no post.  I’m on vacation so it works.

The New Parent Sticker Shock

Posted by Tim Stobbs on July 7, 2009

Friends of mine are expecting their first baby this fall and it has been amusing to me to discuss the cost of everything with the father.  He has joked to me “I’ll have to sell an organ here just to afford all this baby stuff.”

I can relate.  When we were expecting our first I also quickly found you can go deep into debt for baby gear if you want to.  Key word there was “‘want”.  It is possible to have kids and not break the bank, it just takes more planning.

1. Don’t Underestimate Baby Gifts.  I was shocked with the volume of clothes we got when our first son was born.  In some cases the kid only wore a outfit a couple of times before he out grew it.  So if I was to do it over again I would only buy a few sleepers to start with and then got shopping after the baby gift train has come to a complete stop.
2. Realize the Baby Does Not Care.  Really the difference between the hardwood crib and the used one from a garage sale is price and what you think of it.  The baby could not care less what it is sleeping in.  Even as they get older they will likely have no memory of their crib.  So don’t buy expensive “for the baby” you are really doing it for yourself.
3. Try Breastfeeding.  Formula is grossly expensive, so save a small fortune in costs and give breastfeeding a go.  Beyond the money savings you will also be giving your baby a great start in life.  Numerous medical studies have been done on the benefits so do some research if you want to learn more.
4. Avoid Brand Name.  Do you know why all hospitals have Pampers or Huggies?  Because they want to get you sucked into a certain brand from the start.  Don’t fall for it.  I have a friend that has worked at commissioning a diaper plant and trust me there is almost no physical difference between the brand name diapers and store brands.  So save the money.  That applies to most baby products.  No name is just fine.
5. Avoid the Extras. You don’t need a change table.  In fact I’ve never changed a diaper on one in my life.  There are lots of nice things to buy when baby comes, but for the start just keep to the basics like a place to sleep, infant carrier/car seat and some sleepers.  You can pick up diapers on the way home from the hospital.

Well that’s my new parent advice summary, but I curious what other new parents have found out after their baby.  So if you have a tip, please share.

The Art of the Deal

Posted by Tim Stobbs on July 6, 2009

There really is something satisfying about getting something for cheaper than you expected or getting something extra tossed in.  I know every time I negotiate a deal that I thought I did well on it gives me a smile.

I’m not an expert on negotiation, not even close, but I still manage to find a use for the skill once in a while.  Here’s my tips on how to make it work.

1. Ask.  It’s amazing the amount of times in people’s lives that someone doesn’t ask for a deal when it would be appropriate.  If you are buying anything used, you can negotiate the price.  If you are buying any large ticket item negotiate the price.  If your buying anything that would resemble a bulk order you can try to negotiate.
2. Don’t argue.  Negotiation isn’t a fight where the winner takes all.  It’s rather trying to find common group between two people who want to do business.  So don’t come off as overbearing and inflexible.  Just be calm and ask “So would you take less for this?”
3. Have options ready.  If you want to pay $10 for the item don’t offer that as your first bid.  Start at $7 or 8 and be willing to move up.  Also consider in advance the most you will pay for the item in question.
4. Understand the other person’s needs.  When I started my last job I was aware it is often easier for people to offer you move vacation than salary, so I focused my negotiation on vacation.  I got an extra weeks vacation, which is equal to a 2% raise.  We both win in that case.
5. Be careful with low balling.  Offering a very low initial offer can come across as insulting if not done very carefully.  So if you are going to do it, for example on a house, you better be prepared to cut some slack and drop other common terms on the offer to make it clean and somewhat appealing such as home inspection or selling your home first.  Then if the price starts going up you can start adding in terms.  I know I bought my current house without the clause of getting approved financing, which my bank asked for.  They were a bit touchy I didn’t put on the term, but they got over it and it helped me save 5% on my house.

Well that’s my limited experience with negotiating. What has worked for you?  Please share with a comment.