Most regular bills we pay are negotiable, but many of us don’t realise it and end up paying the “loyalty tax”. That tax refers to the higher prices paid by loyal customers. Often applied to banking products, this is also true for other regular bills we pay. Providers normally have enticing sign-up deals to poach new customers. Meanwhile, existing customers end up paying higher prices, hence termed the loyalty tax. What can you do about it? Negotiate! Most of your regular bills, such as phone, electricity or gas, are up for negotiation. Here’s how to do it in three steps. 1. Do your research First, you need to compare prices on what you need. Look around for the best deals. Once you’ve found a better deal for what you need, get a quote via email. This will be useful in step 2. Be aware, however, that some comparison websites may recommend certain products in exchange for a commission. These are normally labelled “sponsored” or “ad”. 2. Contact your provider Now that you know what’s out there, hop on a call with your provider. Here’s what to say: “I’ve been a customer for __________ years. I’m looking to reduce my __________ bill. I’m currently paying __________. However, __________ is offering me __________. Can you beat it? Otherwise, I have to consider switching.” 3. Get a better deal (or switch!) Ask for the new offer in writing. You can think about it and give them an answer later. If they can’t offer you a better deal, it may be worth leaving. Remember, when you’re paying something regularly, a small saving per month accumulates to hundreds of dollars saved every year. There are a few things to keep in mind before you attempt to renegotiate a bill. First, always speak to someone who has the authority to negotiate. If you do switch, make note of any introductory offers and when they expire. And finally, repeat process every few years to avoid the loyalty tax!