Keep Asking for Those Discounts!!!!

Here's a comment a reader left on a post of mine about asking for a discount to get a better price:

Sometimes with bigger work, you can get a significant discount if you pay with cash. For example, I had some major work done in the backyard last year. The original quote was $3,000 but when I asked if I could get a cash discount, he dropped the price to $2,100, almost a thousand dollar savings to me. Now, I'm guessing that with cash, the government doesn't get tax income. If you have misgivings or worries, this might not be for you. I also wouldn't do this with someone you've not worked with or been referred to, because I'm guessing the lack of paper trail would make it harder to get repairs or the like taken care of. However, this was someone that had been doing work for my parents for years, so I was comfortable making the offer. Just something else to consider.

For more examples of how people have saved by simply asking for a discount, see these links:

• More on Asking for a Discount

• Another Example of Saving by Asking for a Discount

• Reader Success Story: Asking for a Discount

• Another Example of Asking for a Discount Saving Money

• Two Examples of Saving Money by Asking for a Discount

• Save Money by Asking for a Discount and Paying in Cash

• Yes, You Can Save Money by Asking a Hotel for a Discount

Comments

[Trent D.]

I don't see any problem with the cash payment option, and don't think you should worry yourself about whether or not the company will pay the appropriate taxes. Paying tax is their responsibility, not yours. Now if they said to your face "Yeah, pay me in cash so I won't have to pay any taxes!" then I would have a problem doing it...

[Katy McKenna]

We've had the opposite happen. A guy did a ton of work on our property (he is our neighbor, so we knew how to track him down later if necessary...). At the end of the job, he asked to be paid in cash. I think he offered us a small discount (we were taken aback at his request for cash, since it was a great deal of money, so I doubt the discount came close to reflecting how much he likely would not be paying in taxes). We did what he asked, but I haven't been thrilled whenever I think about it. He did not say he wasn't going to pay taxes on that income, so I agree it is not our responsibility to ride herd on him. Still, we are in the "just take all of it" tax bracket, and he's....not! It's a quandary.

["Mo" Money]

Discounts are a good thing, but when paying in cash and you suspect the receipient won't be paying taxes, you are just a responsible for the crime?

[Josh Stein]

File a Form 1099 for the work at year's end, especially if you have his address and federal ID (SSN) number. That ensures that the government knows about the work done and the money paid for it.