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Get Ready to Haggle With Your Retail Customers

April 2nd, 2009 @ 8:19 am

3 Comments

Categories: Management, Strategy

Tags: Customer, Internet, Strategic Planning, Free Trade, Construction, Strategy, Management, Finance, Sean Silverthorne

One offshoot of the econ troubles is that shoppers are becoming bolder about asking, “Can you take $10 off the price?”

Yes, haggling has hit mainstream retail, where the price tag is becoming just a starting point for negotiation, according to a great trend-spotting piece in the Boston Globe, “Let’s Make a Deal. An excerpt:

“People act like they just got off the cruise ship in Cancun,” said Karen Fabbri, owner of the Moxie boutique on Charles Street, who has jousted with customers trying to score discounts on items that are already 70 percent off. “The etiquette of shopping has gone out the window.”

Harvard Business School retail expert Nancy Koehn says the Internet has reintroduced shoppers to the concept of bargaining, something that was commonplace until the turn of the century. The rise of railroads and department stores introduced product standardization, all but ending the practice of haggling except in certain areas such as autos, jewelry and antiques, Koehn tells the Globe.

This is a must-read  story, especially if you are in retailing. What is your own experience?  Are your customers demanding more for less? Are your salespeople on the floor trained to deal with the “Can you do a little better on the price?” questions.

(Dignified Haggling image by Neil T, CC 2.0)

 
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  •  
    1

    scribbler60

    04/03/09 | Report as spam

    RE: Get Ready to Haggle With Your Retail Customers

    This line kills me: ?The etiquette of shopping has gone out the window.?

    So if a client walks into her shop and starts to haggle, the client is suddenly lacking in etiquette?

    Does Ms. Fabbri not haggle with suppliers?

    Seems to me that Ms. Fabbri is yet-another one of those business people suffering a huge entitlement complex. "You'll take what I offer at a price I set and that's the end of it."

    Hardly a recipe for succes.

    As a one-time retailer, I actually enjoyed the haggling process. It was a wonderful opportunity to inform clients of the quality of my products and services and set us apart from the competition.

    But if Ms. Fabbri isn't willing to engage her clients in a conversation about price and quality, perhaps she should be looking at another line of work.

  •  
    2

    aboulfaraj

    04/04/09 | Report as spam

    RE: Get Ready to Haggle With Your Retail Customers

    Who cannot live successfully with any transiant period where things change and particularly in cases of product maturity and market saturation, I perhaps prefer to say get out of business rather to say find other line of business to live without retail customer huggle.
    Globalization and communications, made all markets and shops in all the world as they are one big market or shop and that made many shoppers think twice in the price before paying as they know that the same goods will be found here and here and there ... the time of accepting the price regardless .... is about to end.
    But you still can display the price you want and wait for the customer who will pick any item and pay silently. It depends on your targeted goods to sell and your targeted customer who will buy and the volume you want.
    Aboulfaraj Khatib

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    3

    tdhawkins

    04/06/09 | Report as spam

    RE: Get Ready to Haggle With Your Retail Customers

    This is what gets me about the auto industry. (I have nothing against the workers.) Houses just dropped 27% in value (since end of 2006) and car makers still expect to command 20-40k for a vehicle!?! Just like Sears, not particularly known for housewares and also not performing, expects $200 or more for a stand mixer? Retail folks who don't realize a new day has dawned are very likely to be out of business, especially considering real wages haven't kept pace for middle class Americans, most of whom are leveraged to the hilt and already own a stand mixer and multiple cars. There are good days ahead for yard sales!

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