Do you haggle with suppliers? Do you allow haggling?

By Steve Richardson : Administrator
Published 2nd January 2015 | Last comment 5th February 2015
Comments

Crikey I'm at odds with everyone 

I wouldn't try and haggle down a plumber or builder. To me, their first price should be their best price. But i'd also be savvy enough to know that if I ask for it cheaply, I may not gain any loyalty from them.They will hardly want me as a customer in the future.”
 
In an ideal world I'd completely agree.
 
In reality though a lot of businesses add a fair bit of margin. Has anyone really paid the initial price for double glazing, a conservatory, a car or a DFS sofa? How about a building, business or residential? 
 
Recently we got a good haggle at Oak Furniture land. Sales guy got his commission, we saved a few quid and gained a huge wall clock. The chain made a profit and I'd certainly go back and happily recommend them to others.
 
Even managed to get a recent haggle from Moz.com and a nice email back from Rand Fishkin who gave me a discounted monthly subscription. All very polite and nice, I noticed an expired promotion and asked him if would honour it. 
 
Call it haggling or negotiation, it's a key business skill IMHO, from haggler to hagglee and only works if the deal is mutually agreeable to both parties.
 
Once you have a regular supplier and you build up a rapore, confidence and trust, then the relationship develops where negotiation almost becomes built in, doing extra bits and bobs as a matter of course as your customer is a good long standing reliable repeat client, stuff you wouldn't do by default for a new client.
 
Sometimes it can down to a new business finding there way and experimenting with pricing models. eg we have a new supplier whose prices are absolutely fine, but turnaround time wasn't quite quick enough.
 
So we negotiated and got a deal that works for both of us. We have haggled, just not in price but in SLA's. If the deal doesn't work for the supplier, then they can say no.
 
But granted there is a time and a place, as well as common sense. My local Spa Shop would get the hump if I quibbled over the cost of a Marsbar, as would someone selling a lowcost product or service which is unlikely to see me as a repeat or regular customer.
 
Did like the charity argument though, and I'll bet the CEO never does drop a couple of grand!

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

I'd see negotiation differently to haggling. But that's just me as I take some words literally. In my mind, hagglers want the full thing for a lesser price. They don't commit anything more to the seller to get that lower price other than they are a standard buyer. 

Negotiators on the other hand, do exactly that. They negotiate to do a deal where they may vary the "thing" service or product or vary the volume, etc. So for example, buying more than one might be worthy of a lower price, varying the service level, the product quality, and so on. So you reach a compromise that you are both happy with at the price charged.

In the haggle version, the seller can somehow feel peeved even though they didn't have to agree to it. Especially when buyer comes back weeks or months later asking for some loyalty. "I bought this from you last year" (fails to say they got £100 knocked off!) and can they have more for the same price, or can they have repairs at a lower rate because they bought something from you.

I find that once you enter this game they play, they expect it every time from you and woe betide you don't partake! You'd be the bad bugger then no doubt!

Obviously it varies on what it is, and from whom, as to whether haggling or negotiating is the thing to do...or not. You have to gauge the industry and chat to the seller to see if you feel its appropriate.

How I haggle, if you like, is not to ask for a price reduction, but to excuse myself from why I do not want to purchase as I can't afford it, and they may then make the first move and offer a lower price, or some kind of inviting deal. This way, I never asked for money off, it was completely their idea and suggestion, thus the loyalty usually remains intact. Because here, the seller did the maths in their head, decided it was worth it no matter what, and talks themselves into it. Hagglers talk people into something they might later regret, much like sales people do. It's on the spot, difficult to say no, etc, and a play on the persons emotion and personality.


indizine
indizine

@ Steve... I bet you'd soon get cheesed of with haggling if everyone signing up to the directory, thought to themselves... Hmmm I know, the owner of the site likes to haggle so rather than sign up online I give him a call and see if I get it cheaper...


Thanks,
Barney

@ Steve... I bet you'd soon get cheesed of with haggling if everyone signing up to the directory, thought to themselves... Hmmm I know, the owner of the site likes to haggle so rather than sign up online I give him a call and see if I get it cheaper...
 

Nahh not in the slightest, we'll happily take payments over the phone. Take out enough Regions and we might just throw in a free one 

Interesting debate though, especially the reactions of haggling versus negotiation.


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

Well i am your 'Market-Stall' Guy and i'd say definitely more than 1 in 2 people try and haggle.

If my bag is £12.99 they'll try for £10.00

A £6.99 purse they'll offer £5.00

2 £12.99 t-shirts they'll offer £25.00

My response depends on the way they ask, depends on how the day is going, and depends on how much i bought it for.


Thanks,
Kempres

Well last weekend the art of negotiation, haggle and patience was pushed to the limit.

We have been looking at getting some minor work done on the house, replacing the end fascia, weatherboard (or whatever it's proper name is). Had already had a couple of quotes, miles apart, when the phone went, and one of the companies said they happen to have an assessor in the area. If we wanted he could pop round and quickly see exactly what was required and give us a quick quote.

In my naivety and optimistic view of the world, I said yes...

Told the wife Bert the assessor would be round in 20 mins for a quick quote, so we would delay the family day out (operation wear out kids) and plugged the nippers into cbeebies.

Bert turns up, and within 30 seconds realised we were in for the full classic double glazing sales pitch, complete with fully working models of guttering solutions and replacement joists, none of which was relevant to us.

Trying to speed the process up, concious that cbeebies will only hold attention for so long before they start clubbing each other to death, all attempts fell on deaf ears, as a well used and total sales pitch monologue poured out.

Our expectation is for the job to be circa £500 - £900 and we had a quote which seemed to match our requirements and with a (locally) well known firm.

Once talk came to finance options blah blah, our patience was getting very stretched and politeness was slowly descending into sarcasm as we tried to push him along and get to the point.

If we need finance, then your quote is too much!   But on the pitch plodded....

After 2 hours, repeated trips back into the lounge to separate two bored kids and constant "get to the quote!!" remarks, we finally got there.

We had already made it clear we are not interested in the double glazing pitch approach, where the price is reduced by 50% after an hours haggling and phone calls to the office, just give us your best price. To which he assured us we don't do that, that's why we are different. 

When he finally announced the quote of £3,500 we gave him 20 seconds of stunned silence, before quickly trying to end the experience and escort him out of the door.

But no, there were reductions, for helping with their promotion xyz would come off, the price started to fall. When we said we had a quote we thought was fair, he rubbished the idea saying it couldn't be a reputable firm.

We didn't have to, but told him the name who are a large well known group, to which he ridiculed them slating their poor quality blah blah. We are now trying to shoe horn him out of the house as he pleads to be able to phone the office and see what discounts he can make. But got him out of the house and watched him put all his models in the back of the beat up Mondeo. Great image 

I got a bollocking for wasting 2 hours of our life we will never get back, and seemed to prove the point that the ridiculous "state a massive mark up price model" is alive and well and some tradesfolk just like to play a game and waste as much time as possible. Or call it pressure pushy sales for the vulnerable, as part of the pitch was scaremongering which we laughed at, but some folk could genuinely worry.

The whole thing could have been done in 20 minutes, he could have given a fair and decent price, not rubbished the competition, and we would have seriously considered using them. Although very tempting to name and shame, I'd like to think it's not representative of the whole sales force.. 

or is it...


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

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