Reluctant hagglers lose out in big way

You are expected to argue over prices in South Asian and Middle Eastern marketplaces, and refusing to do so could cause offence. Photo / AP

Kiwis are often happy to ask for a bargain on a wood carving or sarong in a foreign marketplace, but are not so keen to seek a discount at home. Research shows that our reluctance to challenge the advertised asking price could be costing us hundreds of dollars a year.

THINK OF the word "haggle" and it's possible that the famous marketplace scene from the Monty Python film Life of Brian will spring to mind.

Brian, the fugitive messiah, is on the run from the Romans when he spots a beard-seller. Needing a disguise, he asks the price then slaps down the full 20 shekels. "Wait a moment," barks the disgruntled merchant. "We're supposed to haggle."

The messiah explains that he's happy to pay the asking price and tries to make his getaway, but the beard-seller is having none of it. "Give it back then," he demands, calling security. "Bert! This bloke won't haggle."

Apart from being funny, the scene brilliantly subverts the cultural rituals inherent in commerce. In some parts of the world, haggling over the price of just about everything is the norm. To neglect it is to devalue the transaction itself and possibly cause offence.

But in other cultures, haggling is seen as rude and grasping.

When travelling overseas, New Zealanders quickly adopt the custom of haggling, trying to save money on everything from the price of a sarong in a Balinese market to a rickshaw ride in a Delhi slum.

But this chutzpah quickly evaporates when we return home. Most people wouldn't dream of haggling over the taxi fare from Auckland airport to the city centre.

Ironically, we put great effort into saving what amounts to a few dollars - even a few cents - while on holiday. But when it comes to items worth hundreds or thousands of dollars back home, we meekly pay the advertised price.

British research shows that those who are too shy to haggle are losing hundreds of pounds a year, and that the majority of people who try to barter down costs for Sky TV, broadband and phone services secure a better deal.

But in New Zealand, it appears we are reluctant to haggle for discounts.

"By and large, I don't think haggling is part of our culture," says John Albertson, chief executive of the NZ Retailers Association. "But when you are overseas and you go into a market like the Grand Bazaar in Istanbul, everybody else is haggling and they expect you to haggle, too. Things are not as clearly marked by price and they expect you to beat them down."

Albertson says whether we can get in touch with our inner barrow boy depends on the situation we find ourselves in. "By and large, New Zealanders are prepared to pay the fixed price. But it's interesting, even in Istanbul when you go to the newer parts of the city, there are fixed prices. It depends on the environment."

But he believes we are learning to bargain harder for what we want. "The more people are exposed to it, it may become more of our way of life. It's like using Trade Me - that is haggling, to an extent."

Sue Chetwin, of Consumer NZ, believes Kiwis are gradually becoming a nation of hagglers and she's all for it.

"I think people are increasingly doing it. In these straitened times, consumers are seeing they can haggle and get prices down a bit, especially if retailers are desperate to get rid of things."

She agrees with Albertson that New Zealanders are "much more reticent" to haggle at home than when they are travelling. "Overseas, you are expected to haggle. I'm not sure if we are very good at it, even if we think we are. But back home people might feel embarrassed or a cheapskate."

Chetwin says consumers may be pleasantly surprised by the reaction of retailers if they make them an offer.

"Particularly with cash," she says. "Retailers have to think how much profit they are making and how long something is left sitting on the shelf. People may be surprised at the reductions they can get."

Paul Brislen, of the Telecommunications Users Association of New Zealand, doubts customers will do well from haggling in his industry. "Get a sales rep on a good day and they'll absolutely do what they can to get you a good deal," he says. "Get one on a bad day and you're lucky if they'll show you a brochure.

"Individuals aren't as well placed as business customers for haggling. That's not to say it's impossible for consumers, and it's important to shop around. Know what you need, know what's on offer in the market on the websites and then I'd go in to the various stores in person and see what you can get.

"It won't be possible for a telco to give you a free iPhone if you're spending only $10 a month, but they may well be able to sweeten the deal in other ways."

Brislen says telcos have bottom lines and will pull the plug on a deal. "They are prepared to lose customers rather than cut a deal that's too cheap.

"Those who spend less than it costs for the telco to support - typically prepay customers who never make calls but receive lots - will be cheerfully waved off to a competitor because they're costing money."

So, how easy is it to haggle for a better deal? The Herald On Sunday tried to "buy" a number of items from big-name stores over the phone, with mixed results.

PB Technology won't cut a deal on its Acer AS5750 computer, saying the $799 price tag is its bottom line. But it says that if a customer finds the same item in another store for a cheaper price, it will match it.

JB HiFi is similarly unmoved on its Samsung HD TV, priced at $777, although it says "of course" it will negotiate on other items. Farmers won't go below $199.99 for its Ascot dining table, saying it is already half price.

But, when asked for a cash discount, a salesman at Noel Leeming immediately knocks $80 off the price of a $1099.99 Fisher & Paykel QuickSmart washing machine. "Come into the store and talk," he says.

Briscoes proves even more amenable over the price of its suede club chair. I ask if it will do a deal for cash on a pair of chairs, the saleswoman knocks $40 off immediately. "Can you go any lower?" I try. After a bit of computer searching, she comes back with another $40 discount.

Following Chetwin's advice to haggle over "big-ticket items", I ring Harvey Norman to ask for a cash discount on its Claudia four-piece bedroom suite, priced at $4999. I get a bargain of $3499 for a store model - a saving of nearly $1500.

So, how about the face-to-face approach? I try to haggle down the $559 price of a two-seat sofa at PK Furniture in Albany. No deal, they say. Prices are already rock-bottom. It is the same story at Freedom Furniture - no movement on a $1599 three-seat sofa. "All our prices have already dropped by 30 per cent," they say.

How about a Daewoo fridge/freezer at Mitre 10 Mega? Surely a discount for cash on the $1246 price tag?

A supervisor is called, he goes away and comes back. "We've already dropped our prices as low as we can."

There is success on the way home, though. I drop into Kings Plant Barn in Silverdale, where large palm trees are available for $249 each. How about a discount for a pair? No problem - $100 off.

Later, I let my fingers do a bit more walking and find a hot tub advertised by Forme Leisure online at $7154. A quick phone call is all it takes to have it discounted to $6499, a saving of $655.

And the splendid Adriatico lounge corner suite advertised by outdoor furniture specialists Poynters may have been tempting at $6675. But it is even more so after they agree to a 15 per cent discount for cash and drop the price to about $5680.

It seems there are no guarantees with haggling. Except one: if you don't ask, you don't get.

- Additional reporting Daily Telegraph

How to haggle

* Do your research. Make sure you understand competitor pricing. Once you are well informed, set yourself a target for the amount you wish to spend.
* Ask for a discount. Many companies have a discount margin they are willing to pass on if requested.

* Engage the sales staff. Being pleasant can go a long way. Don't be rude or difficult. Bear in mind that call-centre staff are often treated poorly by irate customers, and being courteous can breed generosity.

* Don't accept a "no" from someone who cannot give you a "yes". Most companies will have customer retention departments whose sole purpose is to keep business and reward loyalty, so it is worth talking directly to them. Alternatively, a manager generally has more clout to make a decision, so ask to speak to the manager.

* Timing is everything. When you are near the end of a contract, some providers will be prepared to offer you a more competitive deal to retain you as a customer.

* Don't be afraid to walk away. If it seems a sale will be lost, they may decide to drop their price.

Do Kiwis haggle?

Dave Clements, 40, builder, Whangarei:
"I do haggle, over prices and warranties, on all kinds of things. You can always get better deals."

Tara Jones, 30, teacher, originally UK, now Auckland:
"No, I don't. It just feels really awkward and I don't like to offend anyone. Probably people haggle more when they're overseas but I find that difficult. You never get to the real price, and I just want to know how much it is."

Sue Wilkins, 63, housewife, Browns Bay:
"The only time I do it is in Fiji and even then I walk away. I wouldn't be game enough here, I'm a goodie two-shoes. Maybe I would do it with big appliances to get the best price."

Peter Woodcock, retired company owner, Mairangi Bay:
"I like to evaluate what the prices are then go out and beat them down. It works, especially with expensive things like lawn mowers. You can get cheaper deals if you tell people the guy down the road is selling things 25 per cent cheaper than they are."

Trevor Timoti, 48, fitness instructor, Muriwai:
"I was told to haggle over the price of a vehicle once, and I regretted it. The owner was a good guy and the price was already good and I felt stink about it afterwards."

Archita Wad, 29, fashion designer, originally India, now Glenfield:
"I would love to haggle more. Most stores have a fixed price, but if I'm at a farmers' market or somewhere where the prices aren't fixed I will haggle. I have been surprised that store owners are willing to bargain. We are not confident enough. New Zealanders are too sweet to haggle."

Wayne Marks, 47, hospital orderly, Torbay:
"If I'm at a flea market then, yes, I'll haggle. But nowhere else. New Zealanders are not really hagglers. We're a bit too shy, we're not like Americans. We need to be more confident about it because we are definitely missing out."