Haggling for More with Less

by Jessica Sommerfield · 0 comments

A lot of Americans are uncomfortable with the idea of haggling over the price of an item they’re purchasing, but in many other countries and cultures, haggling is not only widely practiced; it’s expected. Enter the foreign souvenir vendor: he quotes a ridiculously high price. You go really low. He comes down a little, and usually you meet in the middle somewhere between his desired price and what you agree to pay. In foreign cultures, in particular, you’ll end up paying too much for anything you don’t haggle for since prices are set for this process.

While you may feel uncomfortable haggling over prices, the reality is that it works and it’s another way to save money. Surveys reveal that 89% of people who haggled for a lower price received at least a partial discount. You may not always get as much of a discount as you’d like, but you may get other perks such as free services, shipping, or bonus items.  Whether you are new to the concept of negotiating prices or are a seasoned haggler, these tips can show you a new trick or two for becoming better at haggling.

Haggling Tip #1: Know the Value and Comparison Shop

Your greatest asset when haggling is a knowledge of the product’s value as well as other sellers’ prices. Simply quoting another retailer or vendor’s price may be enough to get you a deal because the seller knows you are informed and willing to go elsewhere if necessary. Comparison pricing is especially useful when haggling with major retailers, who tend not to be as flexible. If you know what you’re willing to pay for an item going into a transaction, you won’t end up paying too much for something you could have gotten elsewhere much cheaper.

Haggling Tip #2: Start Small To Build Confidence

If you’ve never haggled much before, going right for the jackpot can be a bit intimidating. Start small: try getting a discount on your dented cans of soup at the supermarket, some not-so-fresh produce, or a hand-crafted item at a flea market. Success, even if you only save $1, can encourage you to haggle for larger items and bigger discounts.  Flea markets and yard sales can be less intimidating environments in which to try out your new haggling skills.

Haggling Tip #3: Start off at 40-50% Less than You’re Willing to Pay

Haggling wouldn’t be haggling without the process. If you immediately tell the seller what you’re willing to pay, you’re not as likely to get your desired price. You have to create the illusion that you’re continuing to offer more for the product. At the same time, the seller will create the illusion that he’s giving you a deal by coming down, when he’s probably only knocking off a small percentage of his profit. Keep the value of the item in mind, what you’ve already decided to pay, and be willing to walk away. Someone else may be more willing to take your offer.

Haggling Tip #4: Use Techniques Without Being Fake

Some people who make a living by haggling are willing to put on a show in order to get a rock-bottom price. Lying or using pressure tactics  to coerce a salesman into giving you a discount can call ethics into question and isn’t necessary in order to save money. The key to effective yet above-board haggling is to remain friendly, conversational, and engaging. Here are a few honest techniques you can use with a clear conscience:

  1. Point out small flaws or defects in items to draw attention to their loss in value and negotiate a lower price.
  2. Play up your customer loyalty. If sellers know you’ll come back or purchase other items, they’re usually more willing to give you a deal.
  3. Ask questions that can’t be answered with yes or no; this draws the seller into a conversation and hopefully negotiation. Ask questions such as “what kind of deal can you give me on this?”
  4. Use cash. Using cash saves sellers from paying credit card fees, so why shouldn’t the savings pass down to you? Politely ask if you can get a cash discount.

Haggling isn’t just a way to save money on your purchases; it’s a great way to gain confidence in your knowledge of the marketplace, your ability to interact with retailers on their own level, and a new sense of accomplishment. By far one of the greatest things about haggling is that it’s fun. If you’re not careful, you just might get addicted.

Bonus Tip:

Did you know that you can save money with Netflix? Even if you don't plan on using the service, you should at least sign up for the Netflix free trial here to get some free movies for a month.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: