Australians are "e-haggling" to negotiate better prices for
goods and services as straitened times make them more value
conscious.
"There's been an evolution in haggling," says the program
director with the Australian Centre for Retail Studies at Monash
University, Stephen Ogden-Barnes. "People are distancing themselves
from deal-making in-store and focusing on deal research online.
In-store haggling is being replaced by online comparison
shopping."
The centre's research shows that one in two Australian consumers
now window shop online before buying in-store.
Once they've found a competitive price online, they'll go to
their preferred store armed with this research to seek the same or,
preferably, a better price.
The general manager of corporate affairs at David Jones, Helen
Karlis, confirms this is the company's experience, adding that DJs
prefers price matching to face-to-face haggling.
"We don't do individual haggling the staff don't have the
authority to do that," Karlis says. "And I don't think people think
of DJs in that manner.
"However, a lot of our customers do shop around, phone other
places, then come to us and ask us to price match which we do."
In contrast, electronics retailer Bing Lee says "everything's
negotiable" and its staff can discuss prices on the shop floor.
The retailer says on its website that its catalogue or website
prices are the manufacturer's recommended retail prices and, "in
the real world of buying and selling, few if any products are sold
at the manufacturer's recommended retail prices".
Whether you call it haggling or price matching, it could save
you hundreds of dollars a year.
Bing Lee certainly isn't alone in sealing the deal with a
discount. From washing machines to gym membership or the handbag
that's not officially on sale, there's no harm in asking for a
discount.
A recent survey by US consumer advocacy group Consumer Reports
found the answer will often be "yes".
Consumer Reports found that two out of three respondents had
tried to negotiate a better deal in the past six months and that
half of these people "always" or "often" haggled.
Among the negotiators, 81 per cent had paid less for clothing,
78 per cent secured a better price on a car and 75 per cent took
home cheaper appliances, among other things. Younger people were
more inclined to haggle than older shoppers, the survey found.
Ogden-Barnes says Australians aren't natural hagglers. "I don't
think we are skilled hagglers," he says. "Here, haggling can be
confrontational."
Sellers might respond to an offer with: "You've got to be
joking, mate." And potential buyers sometimes demean a product or
service as a negotiating tactic.
"When a buyer asks, they often do it confrontationally; when a
seller rebuffs, they often do it dismissively," Ogden-Barnes says.
"That isn't the spirit of haggling as you see in other countries,
where it's enthusiastic but respectful."
Consumers are more likely to get a better deal if they put their
case respectfully, he suggests.
"I've got no doubt that anyone who has worked in retail will
know what is meant by a 'difficult' customer and how little people
want to do for a difficult customer," he says.
Instead, explain why you'd like a better price for example,
telling the seller that you like their product but can't ignore the
fact that another brand or retailer is cheaper and then ask how
they can help.
The managing director of consumer research consultancy
Directional Insights, Helen Bakewell, says the influence of
immigrants and the propensity for young Australians to travel means
haggling is becoming more common and negotiating skills are
improving.
"Not everyone feels comfortable doing this but you will see more
of it," Bakewell says. "And retailers are becoming much more
receptive to it it's not just electronic goods now, it's clothing
as well."
She expects haggling to remain a tool in the shopper's arsenal
even when more prosperous times return.
Play your cards right
Don't be afraid to ask - they can only say no.
Know your product and your prices - research online and by
phone.
Be respectful when asking for a better price - don't demean the
product, service or seller.
Ask for the "cash" price.
Shop at the end of the month, when sales staff may be keen to
meet targets or lift commission.
The retailer will be more able to talk turkey at a quiet time of
the day.
Don't negotiate within earshot of other customers - the seller
may not want to broadcast a deal.
If the shop assistant can't help, ask to talk to the manager
about price.
Never act desperate to buy.
You may do better in the store than on the phone.
Pool your shopping (alone or with friends) and buy more than one
item - you can ask for a volume discount.
If you can't get a cash discount, ask the retailer to throw
something else in free.
Look for imperfections and ask for a discount if you don't mind
the flaw or can fix it.
There's no harm in asking whether an item will be going on sale
soon.
As a last resort, turn on your heels and see if the seller
quickly changes his or her mind before you reach the front
door.
Source: Various