Negotiate Cheaper Utility Bills



Negotiate Cheaper Utility BillsWhen you’re in an apartment community, certain utility providers might be set: you probably won’t be able to change your gas or electric providers, for example.  Other utilities, such as water, may be included in your monthly rent.  But if you have choices — especially with your telephone, cable, or Internet service — then you have the potential to negotiate your utility bills down.

Here are some tips for saving money on utility bills by negotiating with providers.

Utility deals
First, keep an eye out for promotional deals.  Cable and telephone companies are often eager to offer you new deals, such as free premium channels for three months.  If you live in an area where gas is deregulated and you have the ability to choose your own gas provider, you may also be able to take advantage of deals there. When you accept a new deal, note the length of the deal and mark your calendar, as you’ll want to start negotiating before the deal ends.

Let’s say you sign up with a cable company to get Internet service for a reduced rate for three months.  A couple of weeks before the bonus period is up, call your cable provider to ask about extending the rate; make it clear that you’re thinking about switching to a competitor. You may be able to get the introductory rate extended, or get a better deal than you would have if you’d just let the introductory rate expire.

Negotiating tips
If you’re going to negotiate cheaper utility bills, here are a few general tips:

  • Be knowledgeable about the deal you’re accepting in the first place.  A company has less incentive to negotiate with you if you’ve already agreed to pay a hefty early-termination fee for cancelling the contract.  Similarly, make sure that any incredible deals don’t come with charges for renting a cable box or modem.
  • If you plan to threaten to switch providers, be prepared to actually follow through.  That means having information on hand as to other potential offers — which can be tricky, especially in the case of cable, where two competitors might not offer you the same line-up of channels.
  • Always be polite to the customer-service representative.  They may or may not be able to help you.  That said, if your first conversation with a customer-service representative goes nowhere, you have two options: hang up and call back at another time, hoping to get someone more helpful, or ask to speak to a supervisor.  Always ask for, and write down, the names of people to whom you speak.
  • Ask to get offers in writing, either mailed to your apartment or via e-mail.  Take notes while you’re talking, and repeat back any agreement to the representative.
  • Don’t try to negotiate when you’re already at a disadvantage. You’ll be in a better position to get cheaper utility bills if you’ve consistently paid your bill in full every time and otherwise demonstrated yourself to be a customer worth keeping.

Competition for your service dollars remains fierce, so leverage that power to get the best deals you can for the services you need.  Read the fine print, and be ready to negotiate for the lowest utility prices you can get.

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