how to haggle

Posted on May 19 · Comments

Do you haggle over the price of goods? My dad was a great haggler. We were always so embarrassed to go shopping with him when we were kids, but he rarely paid full price for things and often walked out with a few bonus freebies thrown in.

Now I have no qualms about asking for a discount. It can actually be fun bargaining. Here are some key tips to getting a better deal.

1. Pick your products and your stores

Not all products are generally bargain worthy, generally just your big ticket items, although I had a friend who would ask for a discount on everything (particularly clothing), so it pays to ask.

Also, not all stores will haggle. Things might have changed, but when I worked at Grace Bros (Myer) the ticket item was the price you paid, no bargaining. Some people suggest bargaining with smaller ‘mum and pop’ stores, but generally I would prefer to support local small business and get discounts from the chains. Having said that, these small stores will often offer you a discount without you even asking, just to get your business.

2. Do your research and pit store against store

Comparison shopping is the foundation of haggling. “Store X is selling for this much, can you beat it?” is a good way to start your bargaining. Don’t forget to check online retailers also. Comparison shopping will also give you a good idea of a reasonable price that a store can agree to. Be prepared with the competing store’s brochure or to wait while a staff member verifies the price you’re quoting.

3. Determine your price

How much are you willing to pay for an item? Is it a figure that a store will reasonably meet?

4. Bring Cash

Often a store will give a discount if you’re paying with cash. They will generally never discount an item if you’re financing it.

5. Don’t be afraid to ask

This is the clincher. People will often pay full price because they are either too embarrassed to haggle or are worried about looking like a cheapskate.

6. Haggling Tactics

Start with small talk before getting into the hard bargaining. Salespeople are trained to build up a report with you in order to get you to buy; it works both ways. Building up a report makes it harder for them to say no to your request for a discount. My dad was a technophile and was a regular shopper at Harvey Norman. He had a specific salesperson that he would deal with exclusively and would ring him in advance to warn the salesperson that he was coming in and he better get ready to bring out a good bargain.

Some bargaining lines:

“What’s your best price?”

“What discount can you give me for cash?”

“Store X can sell it to me for $. Can you match it or do a better deal?” (This is my favourite line. Stores often sell exactly the same product, it can often work for smaller items like DVDs. You may wish to price match to get loyalty rewards or to use a gift certificate).

“This product has a flaw, can you give me a discount” (This can work on clothing if there is an obvious stain or a button missing or a seam not sewn properly. Obviously, I’m not recommending you damage something on purpose).

“I only have $ to spend? Help me spend it.”

“I will have to call my spouse to see if it’s ok… no (s)he says we can only spend $.”

Silence is also a good haggling tactic. Rather than a rejoinder, look like you’re stewing over the offer:

“I can sell it for $350.”

Hmmm

“Ok, $330 is as low as I can go.”

4. Be prepared to walk away

If a salesperson is unable to come to your price, part of haggling is knowing when to walk away. Sometimes this will result in the salesperson lowering the price, sometimes it will mean that you will have to shop elsewhere or make the purchase at a higher cost.