Haggling Makes a Comeback

Thanks to the rising Internet buying culture and a slumping economy, many stores are allowing their salespeople to haggle with shoppers. Goods are a lot cheaper online (a lot of times) and letting the salespeople know how much cheaper can get you a better price in-store.

According to the article, the haggling policies aren’t advertised (for obvious reasons) and that managers and sales people are told to negotiate with customers.

Savvy consumers, empowered by the Internet and encouraged by a slowing economy, are finding that they can dicker on prices, not just on clearance items or big-ticket products like televisions but also on lower-cost goods like cameras, audio speakers, couches, rugs and even clothing.

The change is not particularly overt, and most store policies on bargaining are informal. Some major retailers, however, are quietly telling their salespeople that negotiating is acceptable.

“We want to work with the customer, and if that happens to mean negotiating a price, then we’re willing to look at that,” said Kathryn Gallagher, a spokeswoman for Home Depot.

In the last year, she said, the store has adopted an “entrepreneurial spirit” campaign to give salespeople and managers more latitude on prices in order to retain customers.

This isn’t happening just at Home Depot, of course. Other stores like Best Buy and Circuit City are doing this as well. This trend seems to be taking off both because the economy is so “sluggish” (no one like the “recession” word) and because more people are going online to find the best prices- even if they’re not buying online, they are bringing those prices to the stores to try and find a deal.

“This is one of the periods where the customer is empowered,” Mr. Morris said. “The retailer knows that the customer is enduring tough times — and is more willing to be the one who blinks first in that stare-down match.”

While tough times give people more incentive to change their behavior, it is the wealth of information about products made available on the Internet that gives consumers the know-how to try it. People now can quickly amass information on product availability and pricing, helping them develop strategies to get the best deal.

Michael Roskell, 33, a technology project manager from Jersey City, N.J., said he and a friend from high school periodically visit electronics stores. While Mr. Roskell expresses interest in buying an item, his friend acts as though he is dissatisfied with the price and threatens to leave.

“We play good cop, bad cop,” Mr. Roskell said.

According to the article, ten years ago most consumers didn’t like to haggle, however this is the age of eBay and, well, many people have been bitten by the “bargaining” bug. Many people are learning that with good information and a little stubbornness, they get better than the sale price. Companies are hoping that by allowing haggling, customers will become more loyal, come back for more goods, and recommend the store to their friends and family.

Home Depot, among others, begs to differ. Ms. Gallagher, the company spokeswoman, said that by allowing salespeople and store managers to make some pricing decisions, the company was creating a friendly environment that feels more like a local store than a monolithic corporate superstore. (She declined to say how much leeway individual salespeople or managers have.)

None of the store reps that were interviewed would disclose just how much leeway the store personnel had in making deals, but it’s probably not much. No doubt that some of these stores will raise the prices a little just so the customers think they’re getting a better deal. Afterall, isn’t that what most stores do during a big sale? Still, I can see how brand loyalty can come about when a person feels empowered by making “the deal” and getting something for less than his neighbor did.

I don’t think that stores like Wal-Mart and Lowe’s are going to start doing this any time soon. Home Depot cares a little more about customer/employee satisfaction and is likely building a brand based on that. Hey, that works for me.

I still like to shop online and am anxiously awaiting my teak outdoor furniture (I like to “window shop” then buy what I see from the Internet). But there are some things that I can’t (or won’t) get online and will definitely use haggling to my advantage in the future.

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