The Art of Haggling.

Extracts are taken from: http://www.wikihow.com/Haggle

1.      Do RESEARCH on how much a product costs.

If you're dealing with expensive and complex items (like electronic and jewelry) be sure to examine the details. The seller will quickly try to dismiss it by saying "Oh, but their product has feature A, which is inferior to feature B on our product." Depending on your research, you might say "Yes, you're right, but feature A is all I want, need, and am willing to pay for" or "While feature B might be considered superior by most, feature A is actually more appropriate for my particular needs."

2.      Paying Cash "might" get you more discount. 

3.   Show hesitation about buying the product. Even if it's the perfect item, the moment the seller sees that wistful look in your eyes, they'll know they've got the upper hand. Appear interested, as if you're willing to buy the product if the price is right, but you can certainly live without it as well. When the seller tells you the price, say "Hmmmm....I don't know....".

• Use silence to your advantage. A long, awkward silence is likely to work in your favor. While you stand there as if you're wavering on the fence, the seller will probably get nervous and drop the price a little further, or throw in an extra.^[3]
• Talk about what you don't like about the item, or emphasize its shortcomings. If it's a ring, for example, scrutinize it on your hand and say "I don't know if it's exactly my style...". If it's a computer, ask "Does this come with a wireless keyboard?"^[4] At the same time, be respectful. You could easily offend the seller by pointing out or criticizing points of taste. Point out issues of workmanship or wear.
• Examine the item for any chips, scratches or flaws. Even in major retailers, they will often give you a "open box" or "display" item price if you notice a cosmetic imperfection. Check the back and bring to their attention the smallest flaw. This is especially useful when you are looking to buy the last one of something. Also make sure you really want the item because often, these discounts make the sale final.

3.      Pretend to consult with a reluctant partner

4.  Ask for freebies. If the salesperson is not willing to bring the price down, ask for other freebies, such as coupons to use at a later date or other items he might be willing to throw in. Remember, haggling is not just about the price - it's about walking away satisfied.

5.  Be prepared to walk away. Haggling is all about knowing how long to stick it out to be satisfied and when you need to walk away to look somewhere else for a better price. Don't be afraid to walk out of the store. Often, the salesperson will call you back into the store, telling you they'll give you a better price or deal.

6. Ask local stores if you can get a discount for “Being a Loyal Customer”.

- Ask quietly to avoid putting the store owner manager on the spot (inc case other customers want the same too).

7. Are there any coupons, promotions or discounts I should know before going.. the merchant may give you one just to get and KEEP your business.

8. Whenever possible, offer to order the entire inventory of a  product which has limited shelf life at a discount. They will be happy to reciprocate…

9. NEVER start by asking “whats your best price”.

10. ALWAYS ask if the item you want is going on sale any time soon. If the answer is yes, suggest that they sell it to you at the lower price now, or else you might buy it elsewhere in the mean time.

11. Merchants might be willing to give a higher discount to items which are no longer the “hot new products’ in order to get rid of them

12.  Never pay the listed price on a piece of jewellery.  Haggle accordingly.

13. Offer to pay in cash! (like the above)

14. Travel and leisure
Playing different travel agents off against one another can be a good negotiating tool. So once you have found a holiday you like, ring different agents and ask them if they can beat your best price so far.
If you're travelling independently, haggling is a bit more tricky, and it's virtually impossible to get a price reduction on flights.

"It is unlikely that you'll be able to get a discount when booking a flight," says Bob Atkinson, a travel expert at Travelsupermarket.com. "But if you arrive early, there is a chance you may be able to get an upgrade. If you're travelling for a special reason - a honeymoon or anniversary trip, for example - it's always worth mentioning this at check-in, just in case there are any extras they can offer.
"Your best chance of getting a discount on a hotel room is to walk in on the day and ask what is available for the best price. Again, there's no harm in asking if your room can be upgraded. If you don't ask, you don't get."

It's also possible to haggle over the cost of your gym membership. In some cases, the one-off 'admin' or 'joining' fee can be waived by the gym manager, and there may also be room for negotiation on the monthly fee - especially if you join as a couple or group. 

Key Phrases to use:

1. Hmmm… I don’t know le….

2. All prices on big-ticket items are negotiable.. you just need to find the right person who can do the deal, and then have the courage to ask.

3. Your rivals can do it for less… “You’re entitle to make a profit, but if your competitors can do it for less, you guys probably can too”.

4. “I feel like I was tricked”.. talk about how you feel as a customer.. you stand much better chance of getting your way if you are an innocent victim rather than an angry shopper.

5. “But you broke your promise”…. Whenever a company breaks its contract, you have every right to expect something in return. Just be sure you know in advance what you want when you’re asked.

Part 2: Haggling & Negotiation Skills

Woo Hoo... As I would know, negotiations are not my best skills. But as people say, an Experienced salesperson is Experienced because he has been through enough Experiences.

Today, one week after having made a transaction on impulse for a lifestyle package, with my homework and research done on other Lifestyle Aesthetic Provider Enterprises in the past one week, the time came to meet with with my consultant Kelly (KC for short), who manages my lifestyle aesthetic treatments, and is the Manager of the outlet where where I am based at.

The general rule is, to always do your research before making a purchase. However I did the opposite.. hence the rational for the Buyer's Remorse in my situation!!!

I was blessed. God was on my side even when I didn't ask him to. My research led me to find out that the deal I was given was much cheaper than the initial package quoted being,

• (N.P= Normal Price). Now that I reflect on it, one knows that we should never take the N.P unless some haggling is done.

• Then there is the (P.P= Promotion Price)- which is what I bought for my initial package.

• Finally there is the lowest price that I went to, which was much lower than the N.P and P.P, and after much haggling. I should have asked more, but better try next round. :-P

In Malaysia, is of ultimate importance that one MUST haggle & negotiate for a better price. Cultural Practice states it is MANDATORY.

Today in the midst of my treatment, KC proposed another package to me. This time, with my eyes and ears on the alert, I listened to her as she gave her sales pitch of the benefits of this next treatment.

Experience makes us wiser.
And I was.

This time I told her that I'd give it a think over and get back to her.

I believe that KC did not procure the position as the Outlet Manager without having to prove the skills. The Outlet Manager has the responsibility to meet the sales quota, reporting all sales and marketing movements to The Management.

They have to find various ways to persuade customers to sign up for the different packages in hand or to use existing customers to generate leads. Among the practices that could generate leads are

• Offering benefits and incentives for current customers
  
• Ensuring that the packages or merchandise purchased works well in order to generate good word-of-mouth
• Giving good after-sales service to ensure that the client returns.
• Offering a fairly priced package to ensure that the client does not feel that they have been over-charged, or at least giving the impression to the client that they have made a wise decision on their part.

Part 1: Haggling & Negotiation skills.

I am one of those who do horribly at haggling. Not only do most Australians not haggle, its not in their cultural practice, or expectations to do so. So obviously, during my time in Australia, I totally lost ANY skills of haggling (if I ever had any) to about almost ZERO. I might be exaggerating, but as far as I know, I haven't seen any Australians doing that....

So imagine my surprise when I started my experience at the current workplace (where I have to do the dirty work of tele-selling exhibition space to very typical china-apek/ "chinaman" (a term for someone who is thrifty in spending money) managers. You could say that I was almost a "jakun" (malay term for equivalent in Australian terms for 'someone from the bush') in the haggling department.

Apparently most Malaysian china-man put up their initial price (which is HEAVILY marked up) and then start negotiations from there. Then when they give their sales pitch to customer, they waive this (and waive that), so that in the end, the customers feel like they were given a BIG discount. Not to mention, it is also a cultural practice of a lot of the business people to haggle & bargain on the printed price which is given.

A week or two after I started my venture into the world of tele-sales, I so happened to be in this shopping mall where there was a fitness club, FF. Since both my friend, Asta & I were in need of overhauling our image in terms of spring cleaning the "fats" area, we decided to just drop by the fitness club.

It was indeedly strange, as the salesperson showed us this placard which had the price of the joining fee & administration fee & monthly fee which came up to about RM600+. We were a bit shocked, as it was really a bit too much to even join. I remember rightly a few years back that I didn't even pay a single cent to pay any such thing... so we told the salesperson, Joanne, that we were previously members.

Joanne then proceeded to contact the Centre Manager for a while (supposedly had a discussion lar), and then she informed us that our joining fee & administration fee was *MAGICALLY* waived (with a wave of a hand)...... saying too that that offer was only GOOD FOR THAT DAY.. (which anyone with half-a-brain should know that that is a 'sales gimmick' to lure in naive customers like us to make a sale. hahahaha).

The end result was no, I ended up not enrolling for the fitness club membership of RM195 as it was just too much of a hassle to go a gym after work (traffic jam, blah blah blah). Instead, a week later, I headed to Fitness Concept to get a set of dumbbells weighing a good number of kilos to work out at home. (that came up to only RM35 and will last me for a very long time... ). ^^

Speaking of which, with the economy downturn, it seems that the Australians might be rethinking of haggling after all... till then, later!