If only buyers acted rationally with a full knowledge of market conditions, there would perhaps be what economists call perfect competition with a ruling price at which all the units of articles are sold. In the absence of such an ideal situation, people have to resort to bargaining. Despite a subtle difference that exists between the terms “bargaining” and “negotiation”, the former referring to a competitive win-lose situation and the latter to a cooperative win-win outcome, most of us use both the terms almost synonymously. While negotiation in marketing is taught in business schools, bargaining, as a technique for getting things at prices lower than those quoted by the seller, is picked up by buyers through experience, though some know instinctively how to drive a hard bargain.
True, a seller usually resents a second price for his commodity and an autorickshaw driver loses his cool if the outrageous fare demanded by him is not paid. But if one fights shy of bargaining, one may lose substantially in almost every transaction. There are, however, people who hold that haggling could lead to insignificant gains and result in wastage of time. There is a view that we should not bargain with poor vendors and reduce their paltry income.
A customer haggling over the price at markets, roadside stalls or petty shops is a familiar scene in towns. Years ago I used to watch with interest how our family friend bargained in vegetable markets. He had the effrontery to initially ask a vendor whether he could sell onion or tomato at half-price. He had also the capacity to silence the vendor if he demurred. Ultimately, he would successfully strike the bargain much below the quoted price, thanks to his wit and glib tongue.
Inspired by his example, I decided to give a try of my bargaining skill at a textile shop. I asked the shop keeper whether a cotton shirt marked ₹400 could be sold for ₹200. He cast such a furious look upon me that I had to quietly quit. I realised then that there was probably a method in bargaining. My friend pointed out with a sly smile that I should have quoted my price out of the earshot of other customers.
Once, I was shopping with him in that Mecca of the bargaining world: Ranganathan Street in T. Nagar, Chennai. I liked a brown leather belt that a hawker was holding aloft. He quoted ₹1,200 and many friend offered ₹600. As we moved away, the seller followed us amid a milling crowd, loudly crying out his wares. We finally settled for ₹900. I learnt two lessons in bargaining that day: don’t express your eagerness or dire need for a thing to be bought, and pay the price at which the seller would sell it rather than forgo the sales opportunity. I was convinced that unless I undergo probation for about a year under my friend, I could never match him in this art.
It is said that in western countries people hardly bargain and prefer fixed price shops. However, one can notice in market places like Ranganathan Street, motley groups of foreign tourists shopping for bargain-priced thingamabobs of their choice.
While the traditional types of haggling still holds sway in vegetable and flea markets, the opportunity has been lost in malls and supermarkets.
Bargaining is conspicuous by its absence in snooty malls and super markets; as if to compensate, sellers there provide some discounts, ask you to buy one and get one free, advertise ‘sale’ of goods at reduced prices or give attractive freebies. Votaries of bargain culture are now honing their negotiation skills more in transactions relating to high- value items like cars, houses, electronic goods, jewels or apparels.
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