It is better to be cheated and laughed at than to know how to bargain, reads a
line in Thomas Holcroft’s 19th-century Travels. Even today, the
art of haggling is regarded as most unBritish – something to do in Marrakech
or Istanbul, but when at home, best left to spivish wheeler-dealers. As a
result, consumers are losing millions of pounds.
Dominic Littlewood, who teaches shoppers how to haggle for the BBC programme Don’t
Get Done, Get Dom, says that he continues to be surprised at where you
can negotiate. He has recently secured savings at Curry’s Digital and – by
telephoning customer services – at Amazon.co.uk.
He enjoys a flat 30 per cent off at Ted Baker after discounts became
routine. And at Waitrose, a chat with sales staff knocked 10 per cent off a
£999 computer. “Supermarkets are unlikely to come down on groceries,” he
says, “but you should try it on all higher-value items.” Littlewood concedes
that his television persona helps, but he believes that all consumers can
make worthwhile deals with a little effort. He adds that the best discounts
can be obtained on more expensive goods (in the hundreds or thousands of
pounds), especially clothes, electronics and jewellery – products with big
mark-ups that date fast. He regards 30 per cent off these as standard and
has achieved cuts of 60 to 70 per cent.
Some initial research is essential. A trawl of retailers’ websites and
comparison sites, such as Kelkoo.co.uk, should locate the best buys and
enable you to set the amounts you aim to pay and will not go above. You can
approach the cheapest merchant or use the information elsewhere. “You can
tell a retailer that you could do better online but prefer its shop. Ask if
it will do a deal,” says Littlewood.
Wherever you decide to bargain, confidence and rapport are vital. Exchange
names with the sales assistant and be sure to keep the conversation warm. If
staff state that a price is fixed, ask to speak to a manager. Failing that,
says Littlewood, ask the manager to call head office. “The hardest part is
the first step: getting them to offer something off,” he adds. “Once they
do, the floodgates open.”
The initial approach can be a straight request for money off. If you are
dealing with a chain, however, you may need to give staff a reason to
discount, such as shop-soiled packaging (see list, below). Either way,
Littlewood advocates a robust approach. “Go in with an offer so low it will
insult them,” he says. “Watch their face screw up like a lemon. That’s good.
No one will ever tell you that they won’t do business with you, to get out
of their shop.”
Where this strategy works, sales staff will – after negotiation – offer a
smaller discount around your initial target. Once there, you can try asking
for a free extra to seal the deal, say, a tie with a suit. If negotiations
stall, take time out for a cup of tea at a café.
“Cooling-off time can help. But storming out in the hope of an offer doesn’t
work. Most people will let you walk,” Littlewood says.
Other areas where you can negotiate include the mobile phone and broadband
markets. Rob Barnes, of Moneysupermarket.com, the comparison website, says
that prospective customers cannot haggle, but mobile users coming to the end
of a contract may be able to negotiate extra minutes or texts by threatening
to leave. He adds that the significant minority of broadband customers not
achieving the advertised speed – 8Mb, for example – should demand and expect
a discounted tariff.
Rates on certain financial products are also negotiable. Tracy North, of
uSwitch.com, another comparison site, says that consumers nearing the end of
credit card contracts can sometimes secure a reduced APR for a follow-on
term. Meanwhile, renewal quotes for insurance can be as much as 10 per cent
above initial quotes. It pays to check your insurer’s offers for new
customers on the comparison sites and ask it to match them. If this does not
work, use one of the sites to switch to the better deal.
One area where most of us do know to haggle is the motor trade, where price,
extras, finance and part-exchange are negotiable. It is especially important
to shop around as one dealer may be desperate to make a sale. Where
possible, it pays to say that you are able to pay by cash or cheque on the
spot. The “how to negotiate” guide at driving.timesonline.co.
uk has more advice, including the suggested opener: “I would love to buy this
car but my husband/wife will go nuts if I pay this amount. What can you do
for me?”
Bargaining is also the norm for the biggest transaction most people make:
buying a house. Miles Shipside, of Rightmove, the property website, says
that sale price information from the Land Registry – available free on his
website and others – should help buyers to set their target and maximum
price. He adds that 5 per cent off asking price is often achievable and
suggests testing lower offers on several properties: “The owner of one might
have financial distress or a deadline to move. It can also pay to emphasise
the cost of work needed.”
If you do buy a house, the chances are that you will need work done.
Negotiating with tradesmen is the stuff of nightmares for some, with
research from Gumtree.com, the listings website, indicating that one in ten
people has no idea what to pay for basic jobs. Sophy Silver, of Gumtree,
says that the key is to obtain at least three quotes, sourcing by word of
mouth, where possible, and to ask what friends paid for similar work. “Ask
for quotes with and without materials,” she adds. “Buying them yourself can
save a significant mark-up.
“One caveat is that less-experienced tradesmen may be more willing to come
down on price than those with plenty of work and a solid reputation. Try to
keep a balanced view.”
Looking for plumbers or decorators may make you long for a holiday. If so,
room rates are one more area where prices are rarely fixed, especially out
of season. Priceline.co.uk allows
users to make offers for rooms in 15,000 European hotels. Compare deals with
the last-minute prices at Laterooms.com,
which are discounted by up to 70 per cent. For a chance to appear on Dominic
Littlewood’s television programme, call 0207-713 6868.
CASE STUDY: If at first you don't succeed...
When Aideen McGrath, of Clapham, South London, needed new door locks last
month, she expected a big bill. But the £300 she was quoted by the first
locksmith she called was too much. When he insisted that his price was
nonnegotiable, she went online and found two more on Gumtree.com. The first
also quoted high, but the second asked for a “more reasonable” £206.
Rather than settle, she told him that she would pay £120 in cash, final offer.
“I didn’t expect him to take it, but he said that he’d do £140 and I said
yes. I was delighted with the saving and he did a great job.”
Ms McGrath, left, says that haggling is in her blood. “It’s an Irish thing,”
she says. She likes to buy antiques and says that offers of cash on the spot
almost always do the trick, but she admits: “I couldn’t bring myself to try
it on new items; I’d be so embarrassed.”
Shop till they drop
Some retailers will give a discount for the asking. In bigger stores, though,
you may need to give sales staff a justification. Here are some classic
arguments.
It’s cheaper elsewhere. Most high street products are cheaper
online if not in other shops. Research the market and ask a retailer to
beat, or match, the competition. Dominic Littlewood says: “Do not buy the
argument that shopping online is less safe. If you use a reputable site, it isn’t.”
It’s damaged. Thousands of products are damaged or shop-soiled
every day. Look for any imperfections you can live with – a torn box is
ideal – and ask for a discount. Also check whether a shop has a store of
imperfect and display goods. “A lot of them do,” says Littlewood.
It’s obsolete. You should make much of the age of a product,
especially if it has been superseded by newer models. Some retailers may
have out-of-date stock that they are keen to shift, such as antiquated DVD
players.
I’m a student. If you are a student, a pensioner or simply a
frequent customer, say so. You never know which label might help.
I am a tradesman (plasterer) and give a reduction for cash payment because I recieve the money on completion of the work, rather than having the stress of cheques bouncing, IOU's, debt collectors, I can pay you £1.50 per week for the next five years, etc. I pay the tax on the money I recieve.
Andrew Matthews, leeds,
I spent a year working in retail while at uni and I can honestly say that NOTHING is more infuriating than people demanding discount because "Dom off the telly says...."
That man was the bane of my life for a long time. We live in 2008 in England, not a market in Egypt.
Jonathan Dudley, Canterbury, UK
Haggling in shops is something they do in third world countries. I though we had got past that. How much time would it watse if ten people came into a shop wanting to haggle every day.
Hagglers in shops should be told to hop it and stop wasting everyone valuable time.
Mike, Bolton, uk
"As far as i know its still legal to pay bills in cash. How is it the consumers fault if the trademans doesn't pay the correct tax ?
Gavin, London, UK"
That's a cop-out if the trader offers you one price and a lower one for cash. You would know perfectly well why it was lower for cash, and then - like it or not - you are colluding in a tax fiddle.
Brian, Southampton, UK
I love the initial change of expression on the salesperson's face when I tell them that the item is priced higher than I am willing to pay. I then ask them what deal could they give me. With this initial opener, I get them to reduce the price then I go in at very low offer. Always look them in the eye when you make your offer, it works 9/10 from gas appliance, electrical goods, cars, carpets etc. I have even done it when hiring function rooms.
Paul Whitefield, Worcester, England
Haggling is a waste of time. If everybody started to haggle shop owners would routinely begin to adjust their prices upwards to include room for lost margin. Essentially, over the long-term nothing much would change other than every single sales interaction including a time wasting, annoying, bout of haggling. Visit Thailand for an example of this.
Ed, Auckland, New Zealand
I've tried the argument that a product in a store is cheaper online but will buy it from the store if they match the price but with no success. The usual response is that Amazon, for example, retail from mainland Europe and thus avoid tax, or something like that. I've invariably ended up thanking the shop manager for his time and buying the product on-line. It's not clear to me that shop managers have as much discretion over pricing as is implied here.
Paul, London,
In propety transactions, getting 5% off the "asking price" does not mean that you have a bargain or discount to that effect. It is common practice for estate agents and developers to inflat their valuations and asking prices so any discounts offered are far from genuine. One must look at the sales comparables of similar properties to determine the "true" market prices because after all, a property is worth only as much as whatever price has been paid for a similar property. So do your comparables and due diligence and use those figures as benchmarks when asking for a discount. Ignore asking prices!
Vincent Wong, Milton Keynes, Bucks
Having lived in Johannesburg I discovered that everything is negotiable if buying high value, or multiples. It was standard practice to ask what discount one could receive. On returning to England I wished to purchase several fairly expensive pieces of clothing and asked the shop manageress if I would receive a discount. Her response was an indignant refusal. She lost the sale.
Olivia, Bristol, England
You say shopkeepers will never refuse to do business with you. Try Germany! You can literally walk in to a shop five minutes before closing time with a wad of Euros in your hand and hell-bent on buying a new TV or computer. 'Sorry sir, we've closed the till!', or ' we're closing in five minutes, come back tomorrow' Discounts? 'Sorry sir, our prices are carefully calculated'. My usual retort is, 'so are mine'.
I'm not referring to big department stores rather local shops.
Brian
Hamburg
Brian, hamburg, germany
Since moving to Australia I have found that the sticker price on white goods, bikes, cars are just the starting point. Done very well on airconditioning, fridge freezer, TV and other bits. My advice is only to haggle on medium to high cost items - low cost is too much effort for too little gain in my opinion. The easiest way is playing two stores off - as long as you are genuine and they know a sale is to be made or lost then you'll do OK. I know in the UK white goods and other electricals are more difficult but John Lewis always has the best guarantees - and they will price match.
Andrew, Melbourne, Australia
i went into a top retailer named GAME and i bargained with them and in the end i got £50 off a £400 ps3 with a free game chucked in i did not get it as was told that i needed a 60gb one
also i wanted to try to see if it actually worked thanks dom
rick, spalding, u.k
Those really expensive tiny M&S cakes were piled high and sell-by the day I was in the shop, with half an hour till closing. They were marked down to half price and I offered a quarter at the till.
The till staff called over the manager who said no. The price was still way too high so I walked. They should've been willing to negotiate - I would have saved them about 80p on wasted stock.
Tristan, Oxford,
@e skelton
You should read Keen's "Debunking Economics". It clearly explains how classical economics' supply and demand is a sham, and is based on rather poor assumptions (ie everything is scarce). It will change your view on things.
M Keenan, Belfast,
It is fair enough to shop around and even ask for a discount when making a large purchase, but people like Mt Littlewood give an impression that is quite unrealistic. There is nothing ,more pathetic than seeing somebody DEMANDING a discount. This is not Istanbul and prices are clearly advertised, consumer law is very developed unlike in other countries. If everybody takes the same stance we will end up in the bazaar scenario where prices are grossly inflated and you never know if you were overcharged after all.
Peter, London,
As far as i know its still legal to pay bills in cash. How is it the consumers fault if the trademans doesn't pay the correct tax ?
Gavin, London, UK
If there is room to haggle on price are the stores really competing in a free market? The monetarist mantra was always 'markets work', ie supply and demand in a marketplace of truly independent traders always produces the optimum price for the consumer. If you can haggle them down clearly it doesnt.
e skelton, cardiff, wales
It would appear the case study is suggesting we commit tax evasion for lower prices.
Dominic, Manchester, UK