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Last weekend, The Washington Post published an article from Mike Rosenwald about the recent resurgence of haggling. To get a feel for the art of the deal, Rosenwald spent a week putting haggling to work in his own life:
For consumers like me who have spent decades shopping at full retail, getting a deal on previously no-deal items is liberating and invigorating, as I found out during a recent week I spent haggling. At first, my wife and friends asked me if I was crazy, but when I reported saving $3 on steak at Giant and $50 a month on our Verizon bill, they asked only one thing: How?
Just before Christmas, I spoke with Rosenwald about haggling. Though none of my tips made the final article (which is no big deal; that’s how journalism works!), he did profile long-time GRS reader Stephen Popick (who also volunteers as the GRS discussion forum admin). Rosenwald writes:
Popick is a well-paid guy — he can afford things. But he looks at price tags merely as suggestions. (Call him cheap, and he’ll thank you for the compliment.) For years, Popick has haggled down prices on ground beef, videogames, beer, bicycles, magazines, satellite TV and even the his-and-her plastic reindeer that adorned his front lawn for Christmas.
“I’ve always wondered why more people don’t do this,” said Popick, who lives with his wife in Alexandria. “This is your money. It would be wasteful not to do this, right?”
Taking lessons from Popick and others, Rosenwald gave haggling a try. He negotiated on everything from DVDs to steaks to cell phones. Final result? Rosenwald saved $730 in seven days.
As I’ve said before when this subject comes up, haggling isn’t for everyone. But if you’re brave enough to negotiate — and willing to put up with occasional rejection — you really can save money.
Here are some past Get Rich Slowly articles on this subject:
- How one reader uses haggling to save big bucks
- How to haggle
- You can negotiate anything
- Negotiate once, save thousands every year
- How I cut my Comcast cable bill by 33% (without losing any service)
Do you haggle? How often? Only on the big stuff? What rules have you set for yourself? How successful are you?
[The Washington Post: In tough economic times, shoppers take haggling to new heights]
This article is about Consumerism, Money Hacks, News, Real-Life Friday, 5th February 2010 (by J.D. Roth)
February 5th, 2010 at 5:10 am
This is an interesting article. I have never really haggled except with cell phone bills. When we first got our cell phone account, I thought I had an international plan, but I did not. My wife called her family several times (outside USA) and when I got the bill there were several calls in excess of $25 each. I called the cell phone company and explained the situation and they cut the calls in half. I was happy.
February 5th, 2010 at 5:32 am
I’m all about haggling with the internet/cable providers. I know that they can change the rates. I’m not very good about haggling with other companies though!
February 5th, 2010 at 5:57 am
Thanks JD, I figure the comments I get here will be very different than the ones by the Post Online Community.
A few things that I wish would have been in the article that weren’t
1) If you are in line, it is too late to haggle.
2) Haggling is best done 1 on 1, and not in view of 25 other customers. Be discrete.
3) It helps to be specific.
I haggle on maybe 2% of what I get. It may be as simple as getting the 10% off deal without opening up the required credit card.
February 5th, 2010 at 6:42 am
I refused to allow my now-husband to “surprise” me with an engagement ring. I knew that I could get a much better deal than he could as I am not afraid to haggle. As a result, I saved us hundreds of dollars. I did the same thing with respect to our wedding bands. We saved a total of $2,000.
Last week, I haggled over our cable bill. Somehow, they were able to find a magic coupon code saving me $20 a month.
February 5th, 2010 at 7:05 am
I grew up in a house where haggling for a better deal was part of the process of buying. Some people might say its cheap. I call it an art. My mother is especially good at it, and I’ve noticed a few things along the way:
1. It is much, much easier to haggle at an independent store than it is a giant chain.
2. Be confident. If you don’t sound like you know what you’re talking about, the salesperson will brush you off.
3. It’s easier to haggle when you frequently shop at the same place, and the people know you.
4. Put the salesperson in a tight spot. This is what I’ve seen my mother do: she walks into a fish market (we’re Italian — we like our seafood!). Tells the salesperson that she needs help getting things from the freezer. She points out a small bag of mixed fish (for risotto - yum!) and asks him how much it is. He gives her the price, she says okay. She then asks him to grab a bigger bag of the same mixed fish, and asks him the price. Bigger bag, bigger price. So she says, “I’ll get it if you give it to me for the same price as the smaller one.” The salesperson, who is left standing there holding the bags, says, “okay”.
5. When paying a larger amount, say at a butcher, don’t be afraid to impulse grab. My mother frequently does this, too. She’ll be paying at the cash, and grab an item nearby (olive oil, cheese, chocolates) and say, “how about you throw this in for free, since I’m spending so much/since I’m such a good customer?”. Works for her everytime (I think I’d feel like a jerk!)
6. I’m currently planning a wedding. I always tell the vendor what I want. They give me the price. I’ll either say for that price, can you throw in this, this or this? Alternatively, if I don’t want anything extra, I’ll ask if the price they’re offering is the best they can give. If it is, I walk away because it’s not good enough for me. If it isn’t, they’ll lower it. And once they’ve lowered it, I tell them I’m willing to pay cash (always have it on hand), will they knock off the taxes? Works like a charm.
7. Frequent the same places your friends and family members have frequented, and demand the same prices. My fiancee and I are going to have our wedding reception at the same place my brother had his; doing so saved us $47 per plate! Other venues that didn’t know us were willing to charge us top dollar for our traditional Italian meal. So, we went to where he got married, told the owner my brother got married there (five years ago), he pulled out the contract and saw how much my brother paid, and understood that he had to offer the same price.
At first haggling is awkward, but then it can be quite fun.
February 5th, 2010 at 7:08 am
I have haggled only a few times, when shopping for furnishings. I basically ask them if I can save the tax if I pay for it in cash (here in Ontario that’s a 13% savings). I get turned down maybe 60% of the time.
I am also not afraid to ask for a discount if there is make-up or any other flaw on clothing that I am buying. That’s usually good for 10%.
But I am terrible at flea markets, car dealerships, and any other place where you have to have a back and forth exchange. I’m better in situations where I can just ask for what I want and if they say no, that’s the end of it.
February 5th, 2010 at 7:15 am
After years spent living overseas in countries where haggling is the norm, I’m of two minds on this.
On one hand, I like to think I’ve gotten rather good at haggling, and I’ve even come to enjoy it most of the time. The key there is not to think of it as a competition where you have to best the other person, but as a legitimate exchange where you’re each seeking to acheive something (does that make any sense?)
On the other hand, true haggling takes FOREVER. In some countries, it can be 5 hour long process! By that point, you’ve gotten the guy’s life story 3 times over, had tea, met the neighbours… at that point, it might be fun, but you can’t go through that for all of your everyday transactions!
Not to mention that there’s the frustration of the inconsistency of pricing. I got it for 10 bucks last week, why will this guy only go as low as 20 this week?
Coming home and/or shopping at “Western” stores where set pricing is the norm is often a huge relief. It’s just easier.
It’s one thing to “haggle” when you’re the only person doing it, but when a culture of haggling sets in, then I’m not convinced things get any cheaper- just more unpredictable.
February 5th, 2010 at 7:23 am
There are some easy techniques for amateur hagglers. Some have already been said above, but I’ll restate them if they’ve worked for me. Pay cash (or check, but cash is preferable) and ask for a discount since they don’t have to pay credit card fees since you are paying cash. Ask “Can you do better than your listed price?” and see what they say. Use a competitor’s lower price and see if you can get that price - some places will give you the competitor price and a little more off.
If I’m spending $500 or more I’m gonna at least ask for a least 10% off. Sometimes it works, sometimes not. If I’m buying a $20k car, for instance, I’m offering $17000 (cash). I got a list price $21000 used Acura for $16,700 just by knowing a few things (they’d had the car on the lot over 2 months and I was paying cash). I started the negotiations at $15k, which is way less than I would have if I didn’t know how long they’d had the car. Also don’t be afraid to walk away from the dealer - don’t ever fall in love with one specific car. It’s just a car - you can find another suitable match out there if you look.
I fell in love with my house and probably paid more than I would have if I’d have waited. But I’d much rather fall in love with a house I’m going to be in for 50 years than a car I’ll drive for 10.
February 5th, 2010 at 7:24 am
Don’t be afraid to be frivolous when asking for a discount, either! Along the lines of Alexandra’s tip, above, I asked for a discount the other day when buying $50 icer doodads for velcroing to one’s winter boots for hiking on snow and ice, simply because my package had lost the product description strip that my husband’s had.
No matter that the first thing to go would be that advertising strip, and that this “defect” had nothing to do with the functionality of the item, but I got 10% off.
If I hadn’t asked, I wouldn’t have received.
(Love those ice-handlers too! Took ‘em out immediately for some snow-hiking on an icy, packed trail under a full moon. Note the cheap exercise choice, too!)
February 5th, 2010 at 7:45 am
My Mom who was born and raised in Chicago does this all the time and remember growing up (in the burbs) being embarrassed by it. I think it’s a cultural thing, that she was raised that way and everyone did it but now it’s not part of the culture, at least in most parts of the states and considered gauche. She doesn’t do it for the small stuff so much, but I am amazed how much she has been able to talk down costs from everything from cable to a new car to her property taxes. And I do not think she would use the term “haggling” (that’s akin to calling a frugal person “cheap”) she would say something like the price is not fixed and she is simple “negotiating” the price. Her advice: don’t take the first offer, and always always be polite.
February 5th, 2010 at 7:59 am
I haggle all the time!
I agree that it makes life interesting and there is a bit of an rush that goes through you. Somehow creating an awkward situation puts you in control and gives you confidence. When I first started and saw early success my confidence was sky high!
I chronicled much of it in my blog, and was even featured in Forbes and the Local News this summer as a result. It’s something anyone can do, go try!
My best advice is to always breach the haggle with “Is that the best you can do?,” always be prepared to walk if you don’t get your price, and always buy when you do get your price!
February 5th, 2010 at 8:07 am
@ JD: You have some bug - I can sometimes see random other posters’ contact details that are supposed to be private in the “leave a reply” box
We haggle on big items - cars, furniture etc. We just bought a sectional sofa a few weeks ago. We were happy with the original price, but I told the sales man that it was above our budget and if there is anything he can do to help. Without a fuss he cut the price by $400 - nothing to sneeze at.
February 5th, 2010 at 8:09 am
Yikes. You guys are right. Something goofy is going on with the comments. I’ll get my “tech team” on it.
February 5th, 2010 at 8:21 am
I’m going to have to come down on the other side a little; by all means suggest a discount if you are making a decent size purchase, but please also know when to give up asking.
I used to work in a retail store and we weren’t allowed to give discounts; if the purchase was really large (>$1000) we would maybe call the manager and ask if we could offer a discount.
However, I am not going to knock 25% off your $7 can opener, nor 20%, nor 15. At this point you are embarrassing yourself and irritating the sales assistant, believe me even if you come back and spend $1000 they’re not going to offer you any discount.
February 5th, 2010 at 8:36 am
As a former retail manager for over ten years, I can say that, yes, these techniques work. However, there are other factors to consider.
First, these things work because so few people do it. The general manager may be in charge, but he/she has other bosses looking at financials and results. A point-of-sale discount here and there doesn’t ruffle any feathers, but widespread deal-making is sure to land the GM in hot water.
If purchase-by-haggle became more commonplace, retail sales hiring and training would change dramatically, the new skill sets would diminish retail sales as an entry level job, and wages would probably have to go up. This would probably raise the sticker price on the goods you’re haggling and you’d end up paying the same price.
On a personal note, I would have to say that the haggler’s self-described “confidence” comes across as arrogant. I’m sorry, but asking for a lower price than 99% of the rest of the masses just seems elitist and snobbish. Conversations that began with “I’m a loyal customer…” or “I spend $X a year at your store…” usually ended with me sticking my reputation out for very little gain. Especially since I knew many, many other customers who were more loyal and/or spent more money that didn’t try to haggle with me.
Because a single customer won’t spend (or refuse to spend) enough on their own to impact a large company’s profits, the biggest currency the customer has is their willingness and ability to spread the store’s reputation, good or bad. This is why a loud, belligerent customer often gets his and her way; presumably, they’ll be loud and belligerent when talking to their friends about their experience. This is also why retail employees resent loud, belligerent customers; it is the most unfair of power struggles, and won’t likely stir up generosity in a general manager.
In summary: Be aware of what matters most to a manager. Be nice. Stop telling so many people what you’re doing, or you’ll spoil your own party.
February 5th, 2010 at 8:37 am
Was anyone else surprised that the guy saved $730 in one week by haggling? We don’t spend that much in a week normally…maybe he bought some big ticket items he wouldn’t normally purchase (furniture, etc)…
I get a thrill from haggling, but it isn’t something I want to do all the time. My husband won’t do it at all, so I do most of our shopping.
I got our car for $21,000 instead of $26,500, saved us $75 on our bedroom furniture (should have been more but I wasn’t on my game), recently got our cable bill reduced by $25 a month, and never paid more than 60% of the asking price on any souvenirs we buy when we travel. I will also haggle for jewelry, but I haven’t bought anything new in years.
In short, I haggle for big ticket items, recurring monthly charges, and souvenirs that I know are marked up. I won’t haggle at Kroger’s or Walmart (the places we do our everyday shopping)…it just isn’t worth the trouble to work myself up for a few dollars…haggling stresses me out.
February 5th, 2010 at 8:43 am
This is a great article but I’d love to see more a more in-depth story and some specifics on how to haggle effectively.
February 5th, 2010 at 8:46 am
We haggle when we travel internationally whether it’s at markets, for a hotel room, for bus tickets, or what have you. We also haggle domestically too at hotels/motels. The degree to which we’ll haggle (i.e. how long we’ll dance the dance) varies depending if the country we’re in is one with a haggling culture.
At first I really, really didn’t like haggling, but after years of experiencing it, now I think it’s a lot of fun! Speaking of which, if it’s helpful, I wrote a post on our travel blog about how to haggle when traveling in another country called Seven Ways to Enjoy Haggling. For me, when I approach haggling as something that’s fun - rather than something that has to be done - then fun is what it is…and hey, you may save a few bucks along the way too!
February 5th, 2010 at 9:06 am
Crystal– I was thinking the exact same thing. To get a lot of value out of haggling, you have to buy a lot! Though negotiating something like cable or cell phone service or insurance could result in big savings for a year (assuming you already have those services).
We did a great job negotiating a car price using the fax method on fool.com, but we used email instead of fax. DH and I are talking about how we need to negotiate our next mattress purchase… last time we paid $2000 for a set… but it was a fantastic mattress set.
February 5th, 2010 at 9:06 am
The only things I’ve ever “haggled” are cell phone contracts and credit card rates. And I’ll ask about “special offers” when I’m booking a hotel room. And, since I’m a slow shopper sometimes salespeople offer discounts,and I’m a “regular” at several places where I routinely get “samples” thrown in with my purchases. But I don’t ask for them.
In general, the only person I really haggle with is myself — if I convince myself to buy something at the price that its offered at, I’m OK with it and don’t need to try to get a few more dollars off from what is usually already a sale price!
February 5th, 2010 at 9:14 am
Haggling is all around us in our industry (estate sales) so it helps us to be comfortable in asking for a discount (which I prefer to call it) in sale venues.
Similar to Jessica, coincidentally, when I think of haggling I think of loud and dramatic gestures, colorful street bazaars in foreign lands… not JCPenney. Typically, the larger the ticket the more negotiating courage people muster but just the same, more and more people are doing it for smaller amounts. Remember, if done politely and respectfully as it should be then that’s the best approach for a successful outcome and exhilarating experience.
PS - #5 can get you into their bad books and sour the experience, that’s not what you want. Some of these “demanding” approaches are considered brash and offensive by retailers so beware… it can backfire and get you an unfavorable response.
February 5th, 2010 at 9:30 am
I like the additional tips by JerichoHill (#3).
I’m always of two minds about haggling. On one hand, I’m always interested in trying it out to try to save some money. When people do it right, it seems like an art form, and both sides end up happy.
On the other hand, I’m against it because in my experience too many people do it “wrong” and it’s left a really bad taste in my mouth over the years. As a grocery cashier in my teens, I’d have people try to haggle with me as I was ringing them out. I had no power to give them a discount even if I wanted to, and calling the manager over just wasted the time of everyone else in line to save one person $0.15
I also ran a small independent artisan business, and some people took that as a license to be incredibly rude about haggling, because they clearly thought I was “desperate” for a sale, any sale. Nothing like being told that something you worked hard on handcrafting is junk because some yahoo wants it for cheaper to turn you off haggling.
February 5th, 2010 at 9:54 am
What do you people do for a living? How would you feel if the people who pay your salaries were constantly trying to get you agree to work for less?
I generally don’t haggle, if something is priced higher than I’m willing to spend, then I’ll just not buy it.
February 5th, 2010 at 10:17 am
I have a surefire way to save 100% on selected items-
Stop Buying Crap!
That being said, it makes sense to shop wisely, compare prices in different places, and come armed for negotiation on the big ticket iteams and recurring expenses
February 5th, 2010 at 10:23 am
@Tyler - While employers aren’t constantly trying to get employees to work for less, they are consistently trying to get more for less. Job offers, annual raises, and bonuses are all initial offers which should be countered by the employee.
February 5th, 2010 at 10:27 am
Tyler K– Remember Econ 101? That first lesson about supply and demand? Firms are thrilled if they can offer different prices to different people with different demand elasticities. They’d love it if they could offer high prices to people willing to pay them and lower prices to people less willing to pay them. People who haggle often have lower elasticities of demand, firms want them to buy up to the point where the price they pay is greater than the cost of producing/storing/etc. They get more producer surplus that way. And producers can and do say no when the offered price is too low.
If I was doing multiple projects for different clients and had enough time I’d love to be able to price discriminate… if it’s a choice between negotiating pay and not having any work, you bet I’d love it for people to try to agree to have me work for less (so long as all costs are met including time). Weren’t you just telling people to negotiate salary — that negotiation isn’t a one way street.
Heck, when we were trying to rent out our house we would have loved for some good-risk tenants to have offered us less than we were asking (since the market price we asked included compensation for that risk). (In the end we did get someone from a haggling culture renting it.)
Personally I hate haggling and I only do it for big ticket items, but that’s not because I feel bad for producers, just that with my time I’d rather comment on forums than argue prices.
February 5th, 2010 at 10:33 am
@Caitlin,
If it wasn’t obvious, I’m the longtime reader in the story =).
@Tyler,
We haggle over raises and initial salaries. I’ve heard this comment alot but it doesn’t hold any water.
February 5th, 2010 at 10:51 am
I would like to give you all a view point from the INDEPENDENT SALESMAN’S PERSPECTIVE.
Usually I’m very neurtral-to-kind on GRS but this topic hits a sore-pooint for me: it hits my pockets.
I sell collector’s memorabilia online to local purchasers (individuals) and if you were buying say, an item for a few hundred, asking for $10-$20 off wouldn’t really hurt. Even up to $30.
But on smaller items, some “hagglers” can be VERY nasty. They will try to insult my intelligence by claiming “I read at so-and-so website I can get it for less” while waving less money in my face. The problem is that these are the same individuals that AGREED ON THE PHONE/ONLINE TO THE ORIGINAL PRICE, then THEY WOULD HAGGLE 25%-50% IN PERSON. I’ve seen this countless times, it makes me nauxious. I have to pay my suppliers, my overhead costs, my taxes. This is my bread-and-butter we’re talking about! Have they no shame?
If the item had a defect, was unoriginal, had a chip, was bought in multiples, bundling etc. I could completely understand. But I find *most* haggling is downright disrespectful when done for large percentages of items. Sure you can try and haggle at the local department store if that works, but *please* not with independent sellers.
When I first started in the business, I used to be a sucker for these elaborate stories about “needing” the item for a “grandson Jimmy’s birthday” etc. and I would buy into it. As it would turn out, many of these items were infact RESOLD ON CRAIGSLIST for more. Boy was I a dope.
Now I learned (Being a current psychology major) that “HAGGLING” is also known by a much more insidious name: “FINANCIAL MANIPULATION.”
If J.D. has taught us ANYTHING on here, anything at all, it is that you DON’T BUY WHAT YOU CAN’T AFFORD. If you can afford it, buy it, if you can’t, be mature about it, suck it up and move on. LIVE WITHIN YOUR MEANS.
@#23 Tyler: I agree with you completely.
@#5 Dotty: “I’ll get it if you give it to me for the same price as the smaller one.” The salesperson, who is left standing there holding the bags, says, “okay”.” << Imagine, she commends her own mother for manipulating people carrying heavy objects? Disgust is all I feel towards that scenario.
February 5th, 2010 at 10:54 am
@Tyler - what do you think layoffs, downsizing and union negotiations (think Big 3 automakers) are about? It happens all the time.
We recently bought a twin mattress for our son and simply asked for a better price than what the sign advertised - $325. The salesmen “went to check his computer”, came back about $25 than we offered, we said we’d think about it and about 5 minutes later came back and accepted our original offer. I think being one on one with no other customers around and coming in close to closing time helped us (the salesman said early on he only worked certain days, and the day after wasn’t one of them.)
February 5th, 2010 at 11:03 am
This morning I read this article then went to pay a medical bill. I asked if there was a discount for paying it off in full and was told it would be 10%. I asked if this was the best they could do, was put on hold and when the operator came back she was able to take 20% off. I saved $100 off a $500 bill!
February 5th, 2010 at 11:03 am
Okay, haggling does not necessarily mean being rude. I’ve never insulted anyone while haggling or tried using a guilt trip. If you know what you are willing to pay and why, you and the seller can come to a mutual deal. I’ve never haggled a price down so low that the salesperson looked let down. I simply state what I was hoping/willing to pay and we take it from there.
February 5th, 2010 at 11:06 am
@Heather
Thanks for the post. I will keep that in mind! Our last big medical bill was $800 after our insurance covered the rest and I didn’t think about haggling…I’ll definitely think about it next time though!
February 5th, 2010 at 11:30 am
@#30 Crystal: See THAT is a positive, proper example of what I prefer to call “negotiating.”
Coming to a mutual agreement where both parties are reasonably satisfied by an offer of price decrease within a reasonable range, where neither feels slighted. This practice is perfectly acceptible by me. “Haggling” with its’ negative connotations (especially with what we sellers call “low-balling”) is not polite nor becoming.(The Independent Salesman.)
February 5th, 2010 at 11:40 am
I don’t haggle for every day things. Really…I am simply not going to haggle in the grocery store or Wal-mart.
However, I did just buy a 1940’s desk and two 50’s chairs from someone that sells furniture for a living on Craigslist. I offered him less than his asking price on the desk, he countered and I accepted (I knew he wouldn’t take my original offer). The chairs were sort of an add on purchase. I went to look at one in particular and sort of fell in love with a second one. I just asked if he would give me a deal if I bought both of them. He said sure but we didn’t talk specifics. A few minutes later while I was still looking at the chairs he came back with a number for both of them that was actually less than I probably would have offered. He was happy because he sold two instead of one and I was happy because I got two chairs that I really loved. It helped that I paid cash.
As many people above stated, haggling should really be about both parties coming out at least reasonably happy. Beating up a vendor doesn’t help anyone, including the buyer, in the long run.
February 5th, 2010 at 12:04 pm
When I hear “haggle” I think “Monty Python’s Life of Brian.”
I can’t be bothered. I don’t buy that much, and with the power we have now of comparison shopping, I’m almost always on the side of the seller: if it’s something I need or want, and it’s offered at a fair price, I say “thank you” and tell ‘em to ring it up.
I believe in NEGOTIATING a) large purchases or b) contracts. But for everyday stuff? Eh, no.
February 5th, 2010 at 12:13 pm
We had about 3 inches of snow on the ground this morning and then it started raining cats and dogs (in other words a horrible day) and I needed an oil change/tire rotation. I took my coupon to Precision to get a deal on both. While there they told me I was about 3k miles from needing new brakes (I knew I was getting close). I also knew I needed some fluids changed as they were breaking down. I was the only person there on this wretched day. I didn’t even have to open my mouth and the guy said “We need the work. Let me see what the best deal is the computer will let me give you.” I got 20% off on the brakes and buy one get one free on the fluid changes I needed, + I got to use my coupon for the oil change/tire rotation - without even opening my mouth.
I’ve actually done this a few times and its worked to my benefit. I hate waiting so I will get routine car maintenance done on days where the weather is absolute crap. I’m usually the only person there and I can get an honest opinion, a good deal, and I get the work done fast. I usually go because I don’t want to wait, but I’ve found it actually helps my bottom line to go on days when their business is bad.
February 5th, 2010 at 12:16 pm
Oh and concerning Tyler’s comment above - haggling sometimes cuts into the salesman or employees bottom line. But in most cases it cuts into the company’s bottom line. Precision was paying those guys to stand around anyway. I’m sure they’d much rather take a hit on their profit margins and put those guys to work, while likely getting a return visit in the future from me. If this were some local guy’s shop I’d be less inclined to punch his bottom line, but frankly I could care less about a major company’s bottom line cause I know they already get deep discounts concerning the amount of volume work they do and I want to get my cut of that discount, too.
February 5th, 2010 at 1:26 pm
@Adrian -
That’s her strategy, and it works! Mind you, when I say “heavy,” I’m talking about a one pound bag, so the salesperson isn’t struggling (I hope I didn’t give the impression that the salesperson is physically uncomfortable by the weight). That would be terrible!
I often read about articles that talk about haggling, but not how to haggle, so I was just providing some real life examples. If the salesperson doesn’t want to do it, he/she won’t. There are no coercions, there are no threats. In fact, most of the time, there’s laughter because my mom and the salespeople know one another and know what to expect when she goes shopping there (at this particular fish store - over 20 years).
If you find it “disgusting” I’m afraid you’ve misinterpreted my sentiment.
February 5th, 2010 at 1:36 pm
I don’t haggle. But I need to learn how to do it. I guess it’s part of the mentality in this country: just accept things as they are.
I think it’s an art to negotiate and I am definitely looking for a book to invest in where I can learn how to negotiate anything and everything.
My dad is really good at this. I really can’t pin point on how he does it, but he saves money on almost every single thing that he buys.
Best,
Tomas
February 5th, 2010 at 1:53 pm
@KC The statement that haggling hurts a firm’s bottom line is incorrect. Haggling only cuts into a firm’s bottom line if you’d be willing to pay the full price (and even then, it’s not like the money goes away– you will use it to make someone better off). If haggling gets you to purchase something you wouldn’t purchase then it increases their bottom line. The term is “price discrimination.” When you do the graphs, it moves some of the little consumer surplus triangle into the producer surplus area because firms get more people to buy the product at a profit to them, even if the profit is not the same for everyone who purchases the product.
(It’s related to hurdle theory. It helps firms. It’s the same theory that leads to long lines for discounted theater tickets for senior citizens and students (who have more time than money). Waiting in line provides a hurdle so that the most well off of these groups just get regular tickets.)
And I agree with Crystal– there’s a big difference between haggling and being rude. Being rude is never acceptable.
February 5th, 2010 at 4:10 pm
I really don’t like the idea of haggling. I do negotiate, politely, on things where it’s expected (buying a car/home, phone/internet/cable service), but all in all I think that it only serves to reward bad behavior (being demanding, obnoxious, and difficult on the part of the customer, and being judgmental, inconsistent, and potentially biased on the part of the seller).
There have been plenty of studies showing that car salesmen offer better deals to whites than blacks, and to men than women. Here’s one:
http://www.jstor.org/pss/1341506
I also think that if haggling is widespread, that just puts already-disadvantaged people at even more of a disadvantage. The poorest and least confident aren’t likely to cause a stink about 25 cents off a can opener. Society is already telling them they’re lucky to be tolerated at all.
As a small business owner, I refuse to accept any requests for discounts. Often people ask for a lower price because they “can’t afford it.” Like the person above who reported that, though he was fine with the price of his couch, he said he couldn’t afford it, so he got $400 off. If I can’t afford something, I don’t buy it.
As a social worker, I spend a lot of time helping disabled people go shopping, sign up for utilities, etc. I see that they are constantly taken advantage of in any situation where the person has some discretion over the price offered.
I don’t think that haggling is fair overall for buyers or sellers. Of course people who are good at it think it’s fantastic, but why wouldn’t they?
February 5th, 2010 at 4:39 pm
#5 @Dotty
“4. Put the salesperson in a tight spot. This is what I’ve seen my mother do: [ ... ] So she says, “I’ll get it if you give it to me for the same price as the smaller one.” The salesperson, who is left standing there holding the bags, says, “okay”.
”
Christ. That’s just rude and manipulative. Haggling may have a place in consumer transactions but people like your mother are the ones who give hagglers a bad name.
February 5th, 2010 at 4:59 pm
I grew up in India where a lot of merchants would grossly inflate the prices because they know that they would have to come down 20 - 40% due to haggling. My wife is really good at haggling (you should have seen her at the Saturday market in Italy). But I have learned one very important lesson:
When it comes to tradespeople (cleaners, carpenters, tile layers etc), do not attempt to haggle on price. Haggle on the quality of work. Agree to pay a good price in exchange for a perfect job. If you haggle too much, the person doing the job is going to think that you are cheap and care more for the price than the quality of work. Educate yourself on the process that the task requires and confirm that the best process shall be followed. It would save you time, money and sanity in the long run.
February 5th, 2010 at 7:54 pm
Haggling is great. I reduced my Comcast bill by a bit, negotiated a lower price on some coffee and a candle, the latter of which had a chip. I know it’s not much but if something is imperfect, I’m going to say something. As my late father once said, “If you don’t ask, the answer is still no.” (So ask! But politely of course) Good luck hagglers.
February 5th, 2010 at 10:47 pm
I’m an artisan who makes fine jewelry, and I offer fair prices (lower than such things would cost at your local mall store, if indeed they were available there).
Since I do that, I am not amendable to haggling; in fact, when people try to haggle with me, I am likely to find myself “too busy” to work with them, because in my experience the people who try to haggle cheaper from a fair price are also customer service problems as we get more into the work: they demand far more attention and time than average, and tend to end up unhappy even with perfect work, no matter what I do. I think it’s because they have a personal philosophy of being discontented with everything.
So: if you are dealing with someone who is the only source of something you want- you may wish to reconsider haggling. Even the attempt could cost you the ability to get what you want.
Not everyone inflates their prices so they can “discount” them to the aggressive and tax the polite to make up for it.
February 5th, 2010 at 11:34 pm
I had to laugh at the guy who was referenced as saving $730 in 7 days. Wow. How much did he spend?
February 6th, 2010 at 3:45 am
For those that think they have no ides how to haggle. or are intimidated by the thought, how about this.
Try ASKING for a discount. No haggling, no sharp tongued comments.
Just ask. And ask often. You’d be surprised what you might get
February 6th, 2010 at 10:13 am
I just haggled my credit card annual fee from $45 to
$0. It’s always nice to get some extra unexpected money by haggling down your bills. It almost makes paying bills fun.
February 6th, 2010 at 1:18 pm
I’m guessing that he saved $730 in a week as in, saved $150 on his cable bill over the course of the year, etc. Not that he would have spent the $730 all that week.
February 6th, 2010 at 2:02 pm
Shrug … Here in China, we haggle every where over every thing. Stop feeling sorry for the merchants. If the price is too low, they won’t sell it to you … Big deal, it probably was useless junk anyways.
February 6th, 2010 at 8:04 pm
the notion of haggling to save money is sort of a fallacy. The whole idea of haggling is actually to the benefit of the seller not to the buyer. The buyer hasn’t saved anything, since s/he hasn’t spent anything on the good/service at that space and time. If you aren’t willing to buy a good/service at a certain price, then don’t buy it.
February 9th, 2010 at 11:29 am
Um Tim, surely you must be kidding. I mean you are right to say there is a fallacy in the whole idea of “saving” money because you are still spending money. That being said there are two problems with your thesis beyond that.
1. There is a benefit both to the seller and the buyer. The seller still makes money and the buyer does not spend as much.
2. The buyer probably was going to buy the item either way, so they have spent less than they would have otherwise leaving money to be spent on other goods. Why would you pay more if you could pay less?
Note: I realize that many people will buy something just because it was “such a good deal”. I am not talking about those people.
I think the correct closing statement for your post should be “If you aren’t willing to buy a good/service at a certain price, ask if you can pay less.”
The market is made at the junction between the lowest price a seller is willing to get for an item and the highest price a buyer is willing to pay. If these overlap, there is flexibility, if they meet exactly there is not, and if they do not touch then you buy something else
March 10th, 2010 at 6:47 am
I find haggling very useful and I personally try to apply it to some situations.
There is one situation in which haggling is very difficult, though: at the supermarket.
Any suggestions on how to haggle at the supermarket?