Most people wouldn't think twice about bargaining for a new car or house, but how about negotiating with a doctor, a phone company, or a big-box store?
In a nationwide survey of 2,167 U.S. households by the Consumer Reports National Research Center, most respondents for this bargaining review who tried to talk their way to a better deal achieved some success. As the survey results show, more than 90 percent of those who haggled over furniture, electronics and appliances, floor and demonstration models, and medical bills scored a lower price on at least one purchase during the past three years.
In a nationwide survey of 2,167 U.S. households by the Consumer Reports National Research Center, most respondents for this bargaining review who tried to talk their way to a better deal achieved some success. As the survey results show, more than 90 percent of those who haggled over furniture, electronics and appliances, floor and demonstration models, and medical bills scored a lower price on at least one purchase during the past three years.
Asked about their biggest coup, most successful bargainers said they'd saved $50 or more. In the case of cell-phone deals and medical fees, more than one-fourth saved at least $100.
Often, the keys to successful haggling are a bit of moxie and the right approach. Among the deals we've heard about in compiling this bargaining review:
Often, the keys to successful haggling are a bit of moxie and the right approach. Among the deals we've heard about in compiling this bargaining review:
· Carrie and Bob Nasenbeny of Aurora, Ill., sought an estimate for vinyl siding and new windows for their house. The $25,000 quote led them to seek other estimates, even though the contractor offered to knock off $1,000 if they'd sign on the spot. The other estimates proved similar. Because Bob had been a claims adjuster, he knew that all the contractors had padded their siding measurements, factoring in material costs for spaces such as doors. He asked the original contractor to remeasure and adjust the price, which dropped to $18,000. After reminding the contractor about that $1,000 deduction, the Nasenbenys got the job done for $17,000.
· Annmarie Kahl, an accountant from Carle Place, N.Y., saved $700 on a $1,350 KitchenAid refrigerator at Lowe's. Kahl had noticed that the refrigerator, a floor model, was part of a display kitchen that was being remodeled. As she talked to salespeople over several days, the price kept dropping, but not enough to get her to bite. Finally she told a salesman, "I notice the refrigerator has been here for a while and it's not moving. I'll give you $550." The salesman replied that the refrigerator cost Lowe's $900 wholesale, but Kahl wouldn't budge. After some give-and-take, she offered to take the refrigerator immediately for $650 and had a deal.
· After waiting months for delivery of a $300 mirror from Bloomingdale's, Shari Jill, an actress from New York, phoned customer service and discussed canceling the order. Jill, a frequent customer, insisted that Bloomingdale's give her the mirror free to assuage her frustration. The representative did just that.
· Annmarie Kahl, an accountant from Carle Place, N.Y., saved $700 on a $1,350 KitchenAid refrigerator at Lowe's. Kahl had noticed that the refrigerator, a floor model, was part of a display kitchen that was being remodeled. As she talked to salespeople over several days, the price kept dropping, but not enough to get her to bite. Finally she told a salesman, "I notice the refrigerator has been here for a while and it's not moving. I'll give you $550." The salesman replied that the refrigerator cost Lowe's $900 wholesale, but Kahl wouldn't budge. After some give-and-take, she offered to take the refrigerator immediately for $650 and had a deal.
· After waiting months for delivery of a $300 mirror from Bloomingdale's, Shari Jill, an actress from New York, phoned customer service and discussed canceling the order. Jill, a frequent customer, insisted that Bloomingdale's give her the mirror free to assuage her frustration. The representative did just that.
If bargaining is so effective, why doesn't everyone do it? "People aren't confident they're entitled," says Steven P. Cohen, president of the Massachusetts-based Negotiation Skills Co., which teaches corporate clients to negotiate.
Embarrassment stops others. But negotiating isn't something to be ashamed of, says pawnbroker Max Edison of Albert Lea, Minn., author of the book "How to Haggle." "The worst that can happen is that someone says no," Edison says.What often holds people back, he adds, is the fear of appearing foolish. And that's what sellers, including Edison, hope for. "I set my prices fully expecting people are going to haggle," he says. "When they don't, I make more profit."
The thinking is similar elsewhere. "The markup on furniture is often 100 percent or more," says Harold Harris, a retired furniture wholesaler and retailer from Scottsdale, Ariz., "because they know people will ask for a discount."
Pawnbrokers are prepared to negotiate, of course, but owners of mom-and-pop stores are often receptive, too, since they don't have to answer to anyone. Big chains rarely allow negotiating as a matter of policy, says retail consultant Jack Abelson, but managers are sometimes empowered to wheel and deal, particularly with display, blemished, or clearance items.
BACK TO: Consumer Reports: Smart Shopping
Embarrassment stops others. But negotiating isn't something to be ashamed of, says pawnbroker Max Edison of Albert Lea, Minn., author of the book "How to Haggle." "The worst that can happen is that someone says no," Edison says.What often holds people back, he adds, is the fear of appearing foolish. And that's what sellers, including Edison, hope for. "I set my prices fully expecting people are going to haggle," he says. "When they don't, I make more profit."
The thinking is similar elsewhere. "The markup on furniture is often 100 percent or more," says Harold Harris, a retired furniture wholesaler and retailer from Scottsdale, Ariz., "because they know people will ask for a discount."
Pawnbrokers are prepared to negotiate, of course, but owners of mom-and-pop stores are often receptive, too, since they don't have to answer to anyone. Big chains rarely allow negotiating as a matter of policy, says retail consultant Jack Abelson, but managers are sometimes empowered to wheel and deal, particularly with display, blemished, or clearance items.
BACK TO: Consumer Reports: Smart Shopping
