FOR YOU A DEAL… JUST DON’T TELL ANYONE…
I do not expect Wal-Mart to adopt a policy of allowing workers to haggle with customers over the price of big, or even semi-big ticket items. But if the competitors are undercutting Wal-Mart’s prices, customers will let Wal-Mart know and the company will react.
From The New York Times:
Shoppers are discovering an upside to the down economy. They are getting price breaks by reviving an age-old retail strategy: haggling.
A bargaining culture once confined largely to car showrooms and jewelry stores is taking root in major stores like Best Buy, Circuit City and Home Depot, as well as mom-and-pop operations.
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.
In the last year? It looks like others have agreed with Robert’s long campaign to call a recession a recession.
So just what does latitude equal? Ten percent, 15 percent, 20 percent?
If you’d cut a deal, please let us know.
When you think about it, it’s a pretty good idea. Take a $100 stereo and mark it up to $150, although you’re willing to sell it at $125. Now, your competition (say, Wal*Mart) will see the $150 price and charge $140.
Low maintance customers will walk into your store,. Grab the stereo off the shelf at the $150 price and just pay it.
Bargin customers, however will point out that the competition has a lower price… So the salesman can “haggle” – offer a lower price and, perhaps, talk the customer into buying a surge protector or such – all the while, selling the stereo for the $125 you wanted to make from it (or more). And the customer is going to tell all their friends how they scored such a good deal at your store. Meanwhile, Wal*Mart still sees the $150 price and never reacts.
Shalom Bob,
Americans have forgotten what it means to haggle over a price.
B’shalom,
Jeff
UncleBob:
You need to spend some time in NYC. The big chains have fixed prices, but all the local shops have always been “flexible”.
Shalom Robert,
Indeed.
B’shalom,
Jeff
[...] FOR YOU A DEAL… JUST DON’T TELL ANYONE… I do not expect Wal-Mart to adopt a policy of allowing workers to haggle with customers over the price of big, or even semi-big ticket items. But if the competitors are undercutting Wal-Mart’s prices, customers will let Wal-Mart know and the company will react. Keep reading… [...]