Bargaining a hallmark of enterprising shoppers

By Kristen Gerencher
CBS MarketWatch

SAN FRANCISCO — For some, haggling on a price is instinctive, while for others it's a game. For many, it means the difference in being able to afford a desired purchase or not.

The consumerism that swept the United States in the 1990s turned haggling from the sign of a cheapskate to the hallmark of an enterprising shopper. And as Americans shed their reluctance to haggle, the price threshold at which we'll ask for a break dropped.

A survey of 1,000 consumers in January by America's Research Group found the point at which most felt comfortable asking for a discount is $200 — down from $500 in 1990. And more consumers are applying negotiating skills to everyday purchases.

Items with variable pricing such as jewelry, furniture, clothing, hotel rooms and long taxi rides are prime candidates for price-cutting demands, negotiation experts said. "You can haggle for virtually anything," said C. Britt Beemer, the research firm's founder.

Goods such as gasoline and products on Wal-Mart's shelves offer little room for negotiation, said Leonard Greenhalgh, a management professor at Dartmouth College's Tuck School of Business in Hanover, N.H. "But anything that has a list price and a lot of margin, you ought to be able to haggle for."

Still, most people aren't eager to make a case for a better deal, and younger consumers are especially reticent. Only 28 percent of those 18 to 25 said they feel comfortable haggling all the time compared with 44 percent of consumers 50 and older, Beemer said.

There's good reason to get over a haggling aversion these days, Beemer said. While auto sales have long been conducted through haggling, even traditional retailers who've suffered losses in recent years may be open to entertaining an offer.

"If someone spends more than $200 or $300 at a store, often times they can negotiate something — it may not be a better price, but it may be added savings or the store waiving some other charge."

Fixed prices are often a haggler's enemy because bar codes hold clerks accountable to a set cost, Greenhalgh said.

At the same time, it never hurts to ask for a manager with the authority to negotiate a price break, especially for services such as lodging, he said. "You call them up and say, 'Look, this is what I want to do.' "

Almost nine out of 10 people said they haggled for something last year, Beemer said. Among the items often on the table:

• Major household appliances. Even if you don't get a lower price, a worthy trade-off may be a waived delivery charge, installation fee or a free extended warranty thrown in for good measure.

• Electronics. If you buy a computer, see if you can get a free printer or upgraded memory at no charge, Beemer said. Consumers also can use the delivery charge as leverage of last resort when bargaining for a big-screen TV.

• Clothes. Some chain stores won't drop below a certain price or mark down anything that's discounted below cost, but some smaller outfits may be more receptive to bargaining. A store that won't budge on price may be willing to drop the alteration charge.

• Furniture. Most people can haggle prices down, but newlyweds setting up a new house are in a particularly strong position to negotiate a bulk discount if they plan to stick with one supplier, Greenhalgh said, noting that he negotiated 25 percent off his own total tab. "I was kicking myself later because the guy would've probably taken 40 percent."

Here are some strategies to consider when haggling, according to experts:

1. Identify the decision maker with the authority to negotiate. Often this isn't the most visible person, Greenhalgh said.

2. Ask if the price is negotiable. Sounds simple, but a lot of people assume they shouldn't propose an alternative or throw out a number that locks them in.

3. Know what your walk-away price is and stick to it. "If you don't, you're likely to get pushed to go beyond where you're comfortable," said Barbara Gray, director of Penn State's Center for Research in Conflict and Negotiation at the Smeal College of Business.

4. Be pleasant and treat your adversary with respect. Also, tell your opponent why you deserve a discount, Greenhalgh said.

5. Wait. Despite a cultural proclivity to get in and out of a transaction quickly, patience pays off when haggling, Gray said. "People don't feel comfortable waiting very long for a response. We get antsy because we're not used to haggling and so we're uncomfortable waiting out the other party."