Shoppers haggle for bargains as stores battle for business

Bargain-hungry shoppers are haggling thousands of dollars in discounts as chain stores compete for sales.

Canny shoppers are using bargaining tactics more commonly seen on the streets of Bangkok and India to win the best deals on goods ranging from sofas to jewellery, hi-fis and fridges.

And a survey by the Herald on Sunday suggests most shops are ready to offer a bargain to clinch a deal.

With retail confidence down and sales slow, there's never been a better time for bargaining down prices, according to Consumers' Institute chief executive David Russell.

So the Herald on Sunday went shopping and found the merest hint of a haggle should see the price drop 10 per cent. And if you're a pro, you can shave off more than 15 per cent. With big ticket items, the savings are in the hundreds of dollars.

But you can bargain on any range of prices. The Herald on Sunday saved $20 on a $169 Michael Hill watch and $326 on a couch from Danske Mobler. On 10 items, ranging from the $169 watch to a $3000 television, we saved $1416, proving that haggling works.

We negotiated for a $2566 couch from Danske Mobler - $326 off; a $1499 fridge from Kitchen Things - $250 off; a $399 stereo from Bond and Bond - $50 off; a $1799 computer from Bond and Bond - $100 off; a $2999 TV from Noel Leeming - $300 off; a $1220 necklace from Partridge Jewellers - $220 off; a $499 cellphone from Vodafone - $50 off; a $300 baby carrier from Kathmandu - $50 off; a $169 watch from Michael Hill - $20 off; and $440 sunglasses from the Sunglass Bar - $50 off. Out of 15 stores, we got savings from 10.

That success rate astonished Barry Hellberg, spokesman for the Retailers Association.

"The result surprises me. In Asia [haggling] certainly is there, but I wouldn't expect so here. It runs contrary to the way business is done here. Most prices are advertised at the point of sale, and as part of a developed economy, there should be much less bargaining per se between the retailer and the consumer than happens in Asia, for instance."

But Hellberg says big ticket items, such as appliances, are often up for negotiation, especially if cash is offered up front.

"If you're buying an appliance, you have a lot of fluctuation with hire purchase terms and financing. Deals are a fact of life in the home appliance trade. And most major retailers will do a deal which could well vary from retailer to retailer."

But that doesn't explain the deals we got on lower ticket items. And Hellberg is at a loss to explain how we got $50 off a pair of sunglasses and a baby carrier.

"I certainly wouldn't expect a retail staff member in a general store selling a watch or a backpack would have the authority to take $50 off the price because that raises problems with advertising. I wouldn't have thought the watches or the sunglasses would be in that category. If they did that, they could well have Fair Trading Act problems."

Stores are supposed to sell items at the advertised price, according to Hellberg, or the Fair Trading Act can come into play.

According to Hellberg, the advertised price should be what the item is sold at. Otherwise it harms the next person who comes in the store, if they're not strong enough to negotiate.

Hellberg adds that sales assistants could potentially get into trouble if they cut the price.

"I don't expect staff members would have the authority to negotiate a deal because, if they do, where does the rebated difference go? It raises issues about legitimate practices."

But haggling has become more of a fact of life in New Zealand retail. David Russell says society has changed to a point where some people expect to negotiate a bargain.

"We have, as a country, been used to paying the ticket price. It's only in recent years where the competition has developed in all areas of retail trade that haggling has become partof [shopping]."

Not every store enjoys haggling, though. At Freedom Furniture the Herald on Sunday was told there was no movement on prices because they would be competing with their other branches.

And the Sunglass Hut explained their prices were the lowest they could go anyway, and they would only drop the cost if it could be matched elsewhere.

But Russell said consumers should always try to get a bit extra off.

"Give it a go - there's no reason why not to. If you go in and talk turkey, in most cases you get 10 per cent."

There are savings to be made - and there are a range of tactics the Herald on Sunday trialled. Straight off the bat ask: "Can we go a bit lower on that?" When they come back with a price (probably about 10 per cent under) - go lower again and try your luck.

Try some incentives, as well. If you're able to pay cash up front, say so: cash in the hand is always preferable to hire purchase. Say you've seen similar items in other stores for a better price. And for the final step, tell them you'll buy it today if they drop the cost even further.

Russell says it's important to remember there's no deal until the customer offers to buy at a price and it's accepted by the retailer. In practice there's no deal until you're at the counter handing over your money.

"The ticket price is what is quaintly known as an 'offer to treat'. In other words, it's a suggestion on the part of the retailer of what you may offer. The offer comes from the consumer, the acceptance from the retailer."

And the key is not to be fooled by "incentives" from retailers, like air points and loyalty schemes.

"Accept your loyalty points, provided you get the price right. Don't buy because of loyalty points, do your bargaining first.

"They use them to make you think you're getting a good deal. But the reality is, they're only 1.5 per cent.

"And having struck your bargain, don't get an extended warranty - it often shaves off most of your savings."