Q & A Table of Contents
How much is the initial price inflated?
From: Daniel in Estonia
Question: Could you tell (send?) me any information about Bargain
Quota/Rule/Standard/Norm or Negotiations Quota - about the amount
(percentage for example) that can be bargained off the initial price ??
Response: I am not convinced it would be wise to even think about any kind of standardized Bargain Quota/Rule/Standard/Norm or Negotiation Quota that can be bargained off an initial price. If one is shopping at an American grocery store, one pays the marked price; there is no bargaining. In a farmers' market in most countries, bargaining is certainly normal.
The degree of price flexibility varies with the market, the culture, the
commodity, even the time of day. When we shop in Boston at the outdoor food market, if we are there in the morning, it is difficult to convince the person selling oranges to reduce prices. However, as the day turns to evening, the orange-seller wants to get rid of the remaining oranges, so he is likely to be willing to drop the price much more in order to make the sale.
Each market has its own general rules, and each buyer and seller in each market 'plays' by those rules in ways he or she finds most appropriate. Tourists pay more than local people in most markets -- even if the 'tourist' is a highly sophisticated businessperson who is, for example, buying a multimillion dollar company that is different from the kinds of companies with which she is familiar.
To learn about price flexibility in a given market requires research and
experience. One should ask people who are veterans of that particular
market for help or advice. And one should pay close attention to one's own experience so that each transaction can help you learn how to do better next time.
Sometimes one finds there are sources of information that do provide some assistance: in the United States there is a national consumer organization which will tell you how much an automobile dealer had to pay for a particular model of car with specific features (air conditioner, etc.). With that information, it is easier to bargain because you know with some degree of specificity how much the seller paid and how much profit is available at a given price.
It is important to understand your own limits and goals. If you have a
clear idea of your objectives, you know when to continue bargaining -- and when it is a good idea to walk away.
Good luck and good negotiating, Steve.
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