Negotiation, the monthly newsletter put out by the Program on Negotiation at Harvard Law School, has a fascinating article on the science and art of haggling in its August issue. Haggling and bartering were a bit of my family heritage, what with a father who was a Southern horse trader (on the side) and who also loved haggling with Detroit ethnics during the 1930's and 1940's. Although a number of my college friends viewed haggling as offensive, I thought their views were nutty. When they saw what could be done, they asked for help. My basic haggling rule follows the ubiquitous book title: Everything is Negotiable.
In some cultures haggling has a long tradition in the markets and bazaars and so it inevitably flows into the bricks and mortar stores. Some cultures assume that only fools pay the full price on anything. Growing up in Detroit, I learned that some first generation immigrants and their children--Greeks, Jews, Chalcedonian Christians, Armenians and Lebanese Americans--took haggling for granted. With the influx of East Indians, I've learned that some of them are geniuses at haggling.
If you fail to haggle in this economy, you're passing up real chances to save money. This is a true buyer's market, so just about everything is up for grabs, even, to my surprise, some meat at the supermarket as well as my recent auto check-up. ($30 off a $180 bill is $30!)
A May 2009 Consumer Reports poll found that 66% of Americans had tried to negotiate discounts in the previous six months. Of these hagglers, 83% succeeded in getting lower hotel rates, 81% got better deals on clothing and cell phone service, 71% negotiated cheaper eletronics and furniture, and 62% lowered their credit-card fees. I make it a rule to haggle over my cable and cell phone bills at least every two years. Since I use a hotel one or two nites a month, I call the day before I leave and "double-check the fee" and usually get it lowered or some amenity.
So, Gen-Yers, that May Consumer Reports suggests you could save considerable cash by negotiating in the following realms:
- Hotel rates and airfare
- Phone, internet, and cable-TV
- Credit-card interest rates and fees
- Clothing and jewelry
- Furniture, electronics, and appliances
- Medical and dental bills
- Lease renewals
- College tuition
- Existing mortgages and other loans
I'll pump out several posts on the art and science of haggling over the next few weeks. The academics have researched the sox off the practice of negotiation over the past ten years. Here's another rule: don't pay any attention to negotiation strategies unless there is research supporting them. This is a field that seems to attract quacks. So, I'll happily share the research findings and talk about some relevant experiences. Stay tuned.