How To Haggle

We share a few top tips on how you can save money simply by negotiating price.

• What is haggling?
• Where can I haggle?
• When should I haggle?
• How should I haggle?
• Do's and don'ts of haggling

What is haggling?

Haggling is the process of bargaining between buyer and seller until a mutually-agreed price can be settled upon. Many people are uneasy about initiating a haggle, feeling that it insults the seller and should be something reserved for bazaars and marketplaces. However, there is no reason that in many everyday buying scenarios you cannot negotiate price to your advantage, thereby saving money.

The concept of haggling is based on the idea that you, as buyer, come out of a purchase having paid a fair price for a product. It neither involves cheating the seller or being cheated yourself. It’s worthwhile remembering that the aim of a haggle is always to settle on a fair price; it is not about trying to trick the seller into knocking an unreasonable amount of money off the asking price. Remember that the seller must make a profit.

Having said this, many sellers will intentionally price their products higher in anticipation of that price being ‘haggled down’ by a customer – particularly in private sales or second-hand goods shops. So there is often elbow room for you to pay less money than is being asked while still allowing the seller to make a profit.

Where can I haggle?

Of course you can’t negotiate price everywhere. Some prices stay fixed as advertised and that’s that. Some sellers won’t move on price, even under the solicitations of the most smooth-tongued haggler.

However, there are plenty of places you can put haggling tactics to good use.

• Jumble sales or any sales of used goods are prime haggling territory. The seller will be looking to get rid of items they don’t want, and so will be willing to drop down in price in order to make a sale.
• If you are buying anything from a private seller a certain amount of haggling is usually expected, especially on items where the seller states ‘ONO’ (Or Nearest Offer).
• Car dealerships are another good example of a buyer-seller exchange where the price is expected to be subject to negotiation.
• Damaged goods in department or clothing stores – if the imperfection is small enough that you can live with it, yet large enough to warrant a discount, this makes for a perfect opportunity to haggle.
• Products of high value are more likely to be discounted by the seller than low-value items, where there isn’t much point in haggling in the first place. Good products to haggle on include electrical goods like TVs or laptops, furniture, and jewellery. Sometimes you won’t get money taken off but you may get an accessory thrown in for free, such as a mouse with a laptop.
• The price of your holiday can often be negotiated with your travel agent, especially if you are travelling in the near future or if you are travelling for a special occasion, such as a honeymoon.
• Independent retailers are perfect places to haggle because the owner has ultimate discretion over the price of their goods.

Bear in mind, though, that sometimes it is entirely inappropriate to haggle over price. You would attract strange looks at best if you tried to enter into a haggle over groceries at the supermarket, for example. Also, some sellers already offer their products at perfectly reasonable prices; in these cases a haggle could swiftly become a swindle if you pushed them to go any lower.

When should I haggle?

• If you are intending to haggle in a shop, it’s best to try your luck when the premises are quiet. Never haggle when there is a queue, as the seller as well as the other waiting customers will quickly lose patience with you.
• Towards the end of a sale, where items have already been discounted, is a good time to haggle. Items that have already been slashed in price are more likely to be discounted further – especially at the end of a sale, where the seller wants to get rid of as much surplus merchandise as possible.
• If you are coming to the end of a phone or internet contract, it is worth reviewing what you are paying when compared to other providers. If you feel you are on an uncompetitive rate either switch providers, or haggle with your current one. If you express your wish to leave they will do everything they can to retain your custom – sometimes dropping their prices significantly to do so.
• Another good time to haggle is when a product is nearing the end of its shelf-life or becoming obsolete. For example, a seller is more likely to lower the price on outdated DVD players and mobile phones, to make way for new models.
• If you are a student, pensioner, or frequent customer, these are all good times in your life to strike a bargain. Ask about specific discounts or point out that you provide loyal custom to the seller.

How should I haggle?

When you have decided to enter into a haggle remember that there can only be two outcomes: you are either outright refused any money off, or you come away with a discount. Either way, you have nothing to lose in trying your luck.

Starting out

The first thing to do before you even enter into discussion with the seller is to do your research, by checking the prices of your desired product elsewhere. For example, if your heart is set on a new sofa, shop around and investigate the sorts of prices they tend to go for. Compare prices online, or hunt down the best deals on the high street.

Not only will this arm you with the knowledge to make an informed offer when you come to haggle, but it enables you to tell the seller how much cheaper you could buy the same item elsewhere. Often simply letting the seller know that you have come across the item at a lower price will encourage them to knock their price down, in order to try and secure your business.

Before you start haggling have a set price in mind that you will not exceed, whatever happens. If you find that you can’t push the price any lower than this, simply walk away from the haggle. You never have an obligation to buy until a price has been agreed upon.

Entering into the haggle

A good starting point is to inform the seller that you are interested in the product, but are put off by the price. A buyer’s expressed interest in a product establishes a potential sale in the mind of a seller, and by letting them know you aren’t keen on the advertised price you’ll encourage them to meet you halfway.

When prompted to quote a price you would be happy paying, state a figure that is less than the maximum you are prepared to pay. This gives both you and the seller leeway to meet in the middle. Remember that once you have made an offer you won’t be able to change your mind and go below that.

Also remember that once you have entered the process of haggling over the price of a product, it is expected that you will buy that product when a mutually-agreed price has been settled on. Don’t waste the seller’s time by pushing them to lower the price then changing your mind about purchasing it.

Bear in mind that money talks. If you visibly have cash-in-hand or assure the seller you can pay immediately by cheque, you are more likely to secure a satisfactory purchase.

A good tactic is to let the seller know you will be looking elsewhere for the same product at a cheaper price. You are then more likely to be offered better deals on your desired product. Pointing out imperfections or flaws on the product is also an effective way to have money taken off.

Do’s and don’ts of haggling

• Do keep your cool. If you lose your temper a haggle can quickly become an argument.
• Do be friendly and build rapport with the seller.
• Do be honest and straightforward in your haggling approach.
• Don’t use the argument that you can’t afford the item. If you couldn’t afford it, you wouldn’t be trying to buy it.
• Don’t be pushy or impolite.
• Don’t argue over pennies.
• Don’t demand a discount – sellers never have an obligation to lower prices, however steep you might find them.

In its place haggling can be an effective way to make your cash stretch further. It’s about being proactive and assertive in the pursuit of saving yourself money, but without having unreasonable expectations on the seller’s capacity to discount their goods.