Money Saving Tip: Don't Dress Like You're Rich

Here's a money saving tip that works for me, but I want to hear your thoughts on it as well:

Don't dress/act like you're rich/wealthy when shopping (and especially when negotiating.)

If I have a choice, I always dress down. Sweats (shorts in the summer) and t-shirts are my favorite fashion. Mainly, I choose them for comfort. But there's also a financial advantage to dressing down -- you don't look like you have a ton of money to spend. As such, you can get some price breaks.

This may not help when you shop at Walmart, a department store, or any other retail location with "fixed" prices, but when it comes to businesses where the price is negotiable, it certainly can be to your advantage.

Why? If you dress up, you look like you can afford more than the average person. You exude wealth, so why should the clerk give you a price break or come down on price? On the other hand, if you look, let's just say "less wealthy", and if you act accordingly, suddenly price breaks seemingly pop up.

I've used this tip to my advantage at a bike store, car mechanic, car dealership (when buying a car it works REALLY well), furniture store, mattress store, and more. Literally, saying phrases like, "That seems a bit expensive," "Can you do any better," and "Is there a price break you can give me" along with wearing clothing that says "this guy doesn't have much -- if the price is too high, he won't buy" can work magic for you. It's saved me thousands of dollars in the years that I've used it.

Now here's where I need your thoughts. Some people think that better-dressed people get better deals because they look authoritative, commanding, and in-charge. The theory is that people cower to a well-dressed man and are stunned by a well-dressed woman and so these people do better with price breaks. I've never used this method, so I wouldn't know.

What do you think? Which is better -- dressing down or dressing up? Which will help you save more money? Or maybe clothes don't matter one way or another. Let me know what you think in the comments below.

Comments

[Blaine Moore (Run to Win)]

It's all about attitude. Both methods can work equally well, and one or the other may work better depending upon who you are or where you are shopping.

The biggest thing, though, is your attitude. You have to fill one role or the other in order to make either one work.

[Dave]

I think it is how you approach it.

If you go well dressed then you have to have a very strong personallity and be able to negotiate. Where as if you dress down the cloathing sets the tone and if you say the coments mentioned then I believe that helps too.

I don't think it is a coincidence that you see all car dealers wearing a very nice suit. They try and make you feel small, and make you buy their deal.

I think both work very well but you have to decide which you can use to your advantage the most. Decide which is best for the certain situation.

[frank]

That might work, but on the other hand for a person of color like myself, it might lead to discrimination. Here's an example from someone trying to buy a car:
http://www.neuralgourmet.com/comeoutcomeout

[Amanda]

Well, I have two points to make.

1) If you're traveling, dressing up is definately the way to go. You can do this without forgoing comfort. You're more likely to get upgrades and better service from the airline staff.
2) I think that being nice and pleasant to sales people is the best way by far to get good deals. Treating salespeople with respect and being friendly works wonders!

[sean]

Going to have to agree with Blaine. It's all attitude. Dressed up, dressed down, doesn't matter. If you're an easy mark, they'll bowl you over whether you're in a suit or in sweat pants. A good salesperson can smell desperation... ;)

[rdub]

It is not just the attitude that you exude either. It all depends on who you are dealing with at that car dealership, that airline, or that department store. If that person has attitude, then neither will work for you.

[lamoneyguy]

It depends on where you are. As you mentioned, the auto mechanic or the bike shop may respond better to jeans and a t-shirt. But, as Amanda pointed out, when you travel, or if you shop at higher end stores, you definitely want to dress up.

The latter may not "cut you a deal" but you may get extras, like upgrades or small freebies.

[Bruce]

I had a horrible experience in a furniture store once due to my outfit. My wife and I had just moved, and we were doing yard work on our new place. We were dressed down, in jeans and t-shirts, but we weren't stinky and reeking. We ran to the store together to get something.

On the way back, we decided to stop in at a furniture place to buy a new dining room table which would fit the new place. The salesmen didn't have the time of day for us. When we eventually went up to one and explicitly asked for help, he brought us to the bargain "chip/dent" area, waved his arm, and left.

Wow. Needless to say, we never shopped there again, and we bought a gorgeous, non-pressboard-and-plastic dining room table at another place.

[Duane Gran]

I also disagree with the advice about dressing down. Slovenly clothes are pretty much the norm, but stepping out the door wearing a collared shirt and a jacket will literally and figuratively open doors. In a negotiation the biggest upper hand you can have is "walk away" power, and people who look like they don't need it (whatever it may be) have an edge. Dressing like a professional is one part of the act, but clothing also affects one's mood. While one can overdo fine clothes, wearing a quality garment can boost self confidence.

[Alanna]

I think you dress up if you're buying something where they are hoping for repeat custiomers - like a clothing store. They want you to be wealthy and someone who'll come back. Dress down for one-time purchases like a car. At a car dealership they just want to squeeze what they can from you on that sale, and if they think you have less they will try to squeeze less.

[Dorothy]

I believe it has to do with the person. Some people dress up for pretense and don't have a pot to you know what in and others dress down (yet neat) and are Loaded! As for me, I dress neat all the time and depending on the occasion, doll up(e.i., weddings, parties, etc). I believe that when some people have diarrhea of the mouth (bragging, boasting), they give away their "secrets of wealth" or lack thereof.

Just have a great attitude when you shop and believe that you can get a great deal and you will.