In the UK, haggling is a word that can make people uncomfortable. The thought of doing it can make people even more uncomfortable. In other parts of the world, however, it\’s totally normal and expected to haggle. It’s also less unusual in the UK than you might think. Haggling is a skill it’s well worth acquiring. Here are some tips to help.
Recognise where haggling is and isn’t practical
As a rule of thumb, three prerequisites have to be in place before you can haggle. Firstly the seller has to have time to haggle. Secondly, the seller has to be motivated to haggle. Thirdly, the seller has to have the authority to haggle.
For example, none of these criteria is likely to apply in the average supermarket. The supermarket business model is to get lots of people in and out quickly. If you don’t buy an item, then probably somebody else will. If they don’t, the supermarket will have a process for dealing with that. That process will be set by management, not floor staff.
With service contracts, by contrast, you’re more likely to speak to a sales representative. A sales representative is very likely to have time, motivation and authority to haggle with you. This means that service contracts are ripe for haggling.
Understand the basic mechanics of haggling
The basic principle of haggling is that the vendor starts by making the offer they feel most benefits them. The buyer starts with the offer they feel most benefits them. The seller and the buyer then work together to find a zone of potential agreement (ZOPA). Once this has been established, the seller and the buyer work together to agree on specifics.
In terms of etiquette, the golden rule is that the seller and the buyer should both operate in good faith. Above all, buyers should never initiate the haggling process unless they really are serious about buying at the right price. If a deal is agreed upon, both parties need to stick to it (unless they mutually agree to cancel it).
The keys to successful haggling
Haggling is simply a process of negotiation, specifically on price. As such, there are five basic rules you need to apply to haggle successfully.
Know the market
Haggling is not about learning what is in the market. Haggling is what you do once you’ve familiarised yourself with what’s in the market. Always do your research thoroughly before you contact a vendor. Make sure you’re comparing like with like. If that’s not possible, make sure you’re clear on the differences between offers and what they mean to you.
Know your parameters
You and the seller need to establish quickly if there is a reasonable chance of finding a zone of potential agreement. You can only do that if you know what your parameters are. If your parameters do not suit the seller, then just close the negotiation and walk away. You may wish to leave the door open for the seller to contact you if they change their mind. Do not, however, count on them doing so.
Know your value
You need to be realistic about your value to a seller. Think about where the deal you\’re negotiating stands in comparison to the rest of their business. Are there any ways you could make it sweeter for them? For example, if you know you’re going to need a service for two years, could you sign up for a two-year contract rather than just a one-year contract?
Know your other options
If this negotiation doesn’t go to plan, what would or could you do? How do your options compare to this deal?
Keep emotion out of the transaction
Always remember that haggling is, essentially, a business negotiation. It is not personal. Never let it become so in your mind.
