Haggling for the best price can be a skill
February 26, 2008 - 10:00 pm
Step one in any negotiation is to simply let a salesperson know you want to haggle.
The consumer might open with something like "Would you accept a lower price? Is this price negotiable?" says Steve Budin, a certified financial planner with The Budin Group
Or, says Peter Reilly, an associate professor at the University of Nevada, Las Vegas' Boyd law school and director of negotiation training at the Saltman Center for Conflict Resolution, "just ask, 'Will you take less?' "
"Now, you can do it in a more oblique way," he adds. For instance: "When will this go on sale?" Or: "When was the last sale?"
Or even: "Have you ever sold this for less?"
All, Reilly explains, are "a gentle way of saying you want to open up a negotiation, but you're too embarrassed to say directly, 'I want to pay less.' "
Sometimes, that'll be enough to get the ball rolling. If, for example, the salesperson answers that a sale is coming up or has just ended, "say, 'Can I get that price now?' " Reilly suggests. "Usually they cannot do that, but sometimes they can.
"But it is a signal that you're excited about this price. People who are trained in sales will automatically kick into the mode (of), 'I want to make a sale here, and I'm willing to work to do that.' That's the frame of mind you want them in. Then, you've got somebody who will work with you."
A good rule of thumb is to not make the first offer. It's called the Winner's Curse, Reilly says, and it simply means that if your first offer is accepted, you've foreclosed any subsequent offers that might have been more advantageous to you.
So, Reilly says, "you want them to throw out the first offer. Then, even if you're pleasantly surprised by the offer, don't let them know. Just have a poker face, which is great in this town."
If the salesperson responds that he or she isn't authorized to offer a lower price, ask to talk to a store owner, a store manager, or anybody else who does have that authority.
But "don't try to make the person look bad or go over their head," adds Tod Marks, a senior editor at Consumer Reports. "You certainly will attract more flies with honey than vinegar."
Also be discreet, Marks says. "I always tell people the salesman may not want to broadcast the deal you're offering. Don't talk directly around people. Talk off to the side, when they have time and aren't rushed. If somebody overhears you, they're going to want to get the deal, too."
Don't demand a discount or "issue a take-it-or-leave-it-position," Marks adds. "Be creative. If you're a loyal customer or like to shop locally, tell them that. If a competitor is selling the item for less, mention that."
Marks suggests trying to gauge the seller's needs, too. For example, "if it's an item with a limited shelf life, they may have an extra incentive to deal," he says.
Also look for "fixable flaws," Marks says. "There are many minor blemishes you can certainly live with or easily repair -- missing buttons, dings on refrigerators. Point out the flaw to the seller. The more you point out, the more the price drops."
"Be empathetic," Marks adds. One of the respondents in Consumer Reports' haggling survey noticed a salesperson dealing with a boorish customer.
After the customer left, "he sidles up to her and consoles her for having to put up with this guy who was just being obnoxious to her," Marks says. And, in return for his kindness and support, "she offered him a 15-percent discount on the DVD player he wanted."
Finally, offer to pay cash, Marks says. That way, the merchant doesn't have to pay credit card transaction fees -- which, Marks says, can range from 2 to 8 percent -- and "if you say, 'I'll pay cash, give me the discount,' they may do it."
Contact reporter John Przybys at jprzybys@reviewjournal.com or (702) 383-0280.
RELATED STORY GETTING THE BEST DEAL: BETTER BARGAINING