Do You Haggle In Your Business?
Did you know that over 60% of potential customers view a business owner who is willing to haggle on their prices in a favorable light? This is most often seen in the small business owner than the larger retailers. Large retailers can operate with price-match guarantees, but the mom and pop business has the ability to sell their products at the best price they possibly can. This creates a win/win situation: the business owner makes a sale and creates the opportunity to get a repeat customer. The customer gets the chance to have a great deal on a needed item.
How Much Would 10% Really Cost Your Bottom Line?
For the majority of customers who say they’ve been able to haggle on the price, they say they’ve been able to get a 10% discount on what they were wanting to buy. In real money terms, that would mean saving $10 on a $100 purchase. A vast majority of customers were satisfied with this minimal discount and were encouraged to come back to a business when they needed items that business sold. Most customers realized discounts up to 25% at best.
The question that has to be asked is this: is a discount offered now worth the chance to have a customer come back into a store to purchase items more often? Though some customers haggle because they love the art of negotiation, haggling actually occurs because a customer knows of a better price somewhere else and they are giving you the chance to meet or beat that price. If you choose not to do so, you may still make a sale… but you’ll lose a repeat customer.
Customers Are Willing To Haggle About Anything
Though most customers report that they’ve successfully haggled on the price of a vehicle, they also report successes on anything from books to toys to clothing. If you are in retail, you’ve simply got to be willing to haggle on the price of your items in order to stay in business. JCPenny is proof of this concept – instead of allowing for sales and haggling, the retail giant opted for “fair and square” pricing in a take it or leave it environment. What happened? Their sales dropped by a nine figure dollar amount in just a year!
How Can You Successfully Haggle?
You don’t have to accept every offer to haggle. Some customers simply want to pay a bargain basement price for an item with no concern for your welfare for a business owner. You don’t have to sell things at or below cost. Since many customers are satisfied with a 10% discount, you can offer this any time someone asks if you negotiate on your pricing structure. You might consider starting at 5% and you might consider setting an upper limit of the discount you’re willing to offer. Either way, the more you’re willing to haggle with a potential customer, the more likely you are to get a sale again and again!