Haggling

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Haggling is the process of negotiating the price of something (e.g. a piece of merchandise or a service) with the intent of getting a better deal than the stated price. This is the opposite of the just one price policy implemented by many stores in the 20th century. Optimally, if it costs the retailer nothing to engage and allow haggling, he can devine the buyer's willingness to spend. It allows for capturing more consumer surplus as it allows price discrimination, a process whereby a seller can charge a higher price to one buyer who is more eager (by being richer or more desperate). The reason it has disappeared is that the cost to haggle exceeds the gain to retailers for most common retail items. But for expensive jewelry, electronics and auto sales, haggling is still commonplace.

Although nowadays it is infrequently encountered in the West, it is still common (for example) in the purchase of used cars and sometimes for antiques. Some people report success in haggling for other things, such as the cost of having a chimney cleaned or the amount of a doctor's bill.

Haggling can be seen as an acquired skill. Learning where to aim on a price range and working with the salesperson takes great verbal and people skills. Most consumers do not realize that even though it is common practice to negotiate a better price on a car or service; many other consumer based areas can be brought down in price. Stores that are locally owned, have salespersons on a commission, or sell larger appliance or electronics are good targets for saving some money in haggling.

Advice

A few good tips: Do research, know as much as possible about what you are buying, look for a competitive price and/or retailer, and try to always talk with the same salesperson. Do not buy your item on the first trip to the store, but rather inquire about a few things, ask for prices, and then politely leave the store and say that you will be in the market shortly or searching around before settling depending on the urgency of the product. When returning to a store, do try to track down the salesperson you spoke to show that you want to support them and give them the sale. Remembering their name, recalling facts they gave you, and over all being pleasant can aid you in your purchase. Learning to inquire about a lower price without being abrupt or forceful is the hardest part, but with a few purchases, you can learn when to best ask. Usually, the larger the cost of the item, its demand, the commission rate of the salesperson, and the stores daily business will affect what kind of deal, if any, you can acquire. Also be aware of any anual/quarterly sales bonuses that the salesperson may be working towards and try and buy towards the end of the period. Being patient and friendly are two key factors in achieving the best result.

If an offer is extended and even if you like it, think it over. Have a buddy or friend that is helping you in your purchase discuss whether or not this seems reasonable. If you feel you are in a position to ask for a bit more off, then try to do so, but getting too greedy can negate any deal previously offered.

See also

• Retailing
• Price discrimination