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Haggling – it is not a very romantic word,  it actually gives me a tense feeling as I envision the meaning of the word. How about “effective negotiation”? There, I like that better. But what really is haggling, and how can an individual use it to their advantage?

A recent article in the Washington Post discusses what is deemed to be a hot new trend - haggling for reduced prices for goods and services. According to Nancy Koehn, a Harvard Business School retail historian, the recession has forced people to become more assertive, and the increase in haggling is “the biggest sea change of consumer behavior since the end of the Second World War”.

But wait a minute, I’ve been “haggling” with street vendors and the locals down on the Mexican beaches for years in order to get $5 toe rings and ten tamales for a dollar! Apparently times have changed, and according to a study last year by Consumer Reports, 66 percent of Americans have tried haggling at least once in the last six months, with a fairly decent sucess rate.

So what exactly is haggling? In a nutshell, it is negotiating for a lower price than advertised. People been doing it for years at the car dealerships, so why not other products and services? According to the Consumer reports survey, goods and services that hagglers have been most successful at getting price reductions include hotel rates (83% success), cell phone bills (81%), clothing (81%), furniture and electronics (71%), credit card fees (62%), and medical bills (58%).

Want some tips for haggling? Here is a brief list:

1. Do your homework. Research prices for the item online or in in the newspaper, and bring proof with you to the store. 

2. Be kind! Smile, be patient, and not condescending or demanding in your approach.

3. Strategic timing. Certain times of the month and day are best; for instance, at month end for sales goals, and during the least busy store hours in order to provide less interruption.

4. Keep the conversation private. Often, the floor sales clerk won’t have the authority to approve a discount, thus the discussion may be more effective by requesting a supervisor – and haggling quietly where other customers won’t hear.

5. Cash is king! Transaction fees for credit card usage take a significant chunk of store profits, so the tactic of offering to pay cash may benefit both parties.

6. Read the detail on the price tag. Particularly with larger ticket items that have been sitting on the sales floor a long time, the likelihood that a deal can be made improves as time goes on as inventory and holding costs affect the retailer’s bottom line.

 7. Be prepared to walk away. The most persuasive weapon you have in your haggling arsenal is your ability to walk away and spend your money someplace else. 

Haggling isn’t for everyone – many people just aren’t comfortable with confrontation or negotiation, or are just plain too shy. If this describes you, there is even service that you can hire – it is called Negotiate4U and according to their website, they will negotiate on your behalf to get a better deal for you on any number of products or services. In exchange, you will be required split the difference with them on the savings they achieve for you. 

Has anybody been successful haggling for a discount on goods or services recently? If so, please share your experience by leaving a comment!

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