By Cameron Nakashima, BBB Great West + Pacific
Have you ever felt like you’re paying too much on a large purchase, but didn’t know how to get a better price? Or maybe you weren’t comfortable asking for a lower price? If so, a little haggling might help.
Haggling, or negotiating prices, is a valuable skill that can help savvy shoppers save money and get the best value—especially on purchases related to your home, vehicle or other big-ticket items. While many people are intimidated by it—me included—haggling is a frequent practice that creates a healthy marketplace when done respectfully and the Better Business Bureau has tools and tips to help make it easy.
Why haggling
In today’s economy, where every cent counts, learning how to properly negotiate can be extremely beneficial. The key is understanding that haggling doesn’t have to be adversarial. When both parties approach it with integrity, it can lead to deals that satisfy everyone involved.
How haggling works
At its core, haggling is about buyers and sellers negotiating back and forth until they agree on a final price. It operates on the premise that the initial price is just an opening offer, not necessarily set in stone. The buyer has every right to counter with a different proposed price until a final price is agreed upon by both parties.
Some people haggle because they enjoy the negotiation and scoring a good deal. Others do it out of necessity to ensure fair pricing. And, many choose not to haggle due to discomfort, the mistaken belief that it’s rude or assumptions that prices are firm.
While not everything is negotiable—such as the produce at the supermarket—you’d be surprised how many scenarios allow for haggling. Such scenarios include major purchases like houses, cars, expensive services, large ticket items for your home or office, and more.
Tips for new hagglers
If you’re interested in becoming a skilled haggler, here are tips to help you get started. First, do your research on the fair market pricing for whatever you want to buy. As part of this process, price out similar items or get quotes for services from at least three reputable companies. You can easily get quotes from multiple contractors in your area by using the free Get-a-Quote tool on BBB.org. The knowledge from your research empowers you to negotiate from a reasonable perspective.
If haggling makes you nervous, think of it as a conversation instead. You are simply communicating your needs and expectations to a seller so that you can make the best use of your money. Be willing to walk away if the seller won’t meet your expectations—both financially and ethically. This demonstrates you aren’t desperate and increases your leverage. Maintain a respectful, polite attitude throughout. The goal isn’t to take advantage, but to find a satisfying middle ground for both sides.
By following these tips and approaching haggling with confidence and respect, even novice hagglers can significantly improve their chances of securing better prices with trusted businesses and getting the most value for their money.