Haggling making a comeback
By Dick Hogan
(Fort Myers, Fla.) News-Press
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Remy Fenelus remembers a time when customers at his south Fort Myers, Fla., shop paid the asking price for his custom-made suits and dresses.
"When you'd tell them something's 50 dollars, it's 50," he says.
But that was then and this is now.
Experts say a wave of haggling — fueled by hard economic times and Internet pricing research — is sweeping the country's retail landscape.
Even chain stores such as Home Depot, which traditionally had a strictly fixed price policy, are now more willing to bargain although there are limits.
Dan Lubner, vice president of marketing/business development at Fort Myers-based furniture store Robb & Stucky, won't strike a deal.
His regular customers benefit from the better service and personal relationship they build up with the store and that more than makes up for any advantage they could get haggling, Lubner says.
"The problem with bargaining is that if you become capricious with your bargaining, it's hard to tell what something costs. The price we have on Monday is the same we have on Saturday."
COMPARISON SHOPPING
People are getting more savvy about comparison shopping on the Internet and asking for deals, but that strategy also carries a risk, he says: Shipping costs may eat up the difference in price and if there's something wrong with the product or delivery is required, the buyer is stuck dealing with the problem.
Even at national retail chains, a good haggler can sometimes make a deal, says David Keller of Cape Coral, Fla., who practices what he preaches.
"It kind of depends on what it is you're getting," says Keller. "For example, where there's a lot of wiggle room is the open box item, where it's opened because somebody returned it. A lot of time I've found the item is highly negotiable, especially when it's been there some time."
The idea of a more flexible approach to price is nothing new, says Dan Borgia, associate professor of finance at Florida Gulf Coast University. "It's a throwback to when I was a kid. I grew up in Erie, Pa., and I remember my Italian grandmother who'd haggle buying fruits and vegetables in the market. I'd watch in amazement."
Even retailers and shoppers who don't haggle can sometimes accomplish the same thing with other techniques.
INCREASED INTEREST
Home Depot, for example, has a policy to sell most items for 10 percent under any local competitor that's advertising at a lower price. "Let's say you're looking for a ceiling fan and you find it at a competitor for $79. We'll beat that $79 by 10 percent," says Craig Fishel, a Home Depot spokesman.
Others say, however, that the extent of haggling that major chains will do is sometimes exaggerated in the public mind.
"They have to be fair and equitable with their pricing," says Dan Butler, vice president for merchandising and retail operations at the National Retail Federation. "The item has to match the price."
There's an increased interest in bargaining by customers because more information's available on the Internet, he says, but the practice is more common among smaller, independent operations.
Even in countries where negotiating is more accepted, it's usually not universal, he says. "If you're in a tourist marketplace, the price might be inflated and subject to negotiation, but when you get into the main shops where the locals shop, it isn't."
Whatever the merchandise, Borgia says, it's easier to haggle if you're operating from a position of strength. "It's fun, but a little nerve-wracking if you're desperate to sell."