Monday, March 05, 2007

Cheaper by Haggling

' bachat mera adhikar hai.. ' goes a certain ad.
It taps into the Indian Psyche of value delivered through lower price and not necessarily superior (beyond base requirements) benefits.
Indians have mastered the art of bargaining. My professor in IIM Bangalore who is also an economist and member of trade panel representing India in the WTO forum, told me once that Indians are among the most despised souls in the forum, as they bargain and haggle to the hilt. Leaving the macro economic and trans national treaties and conundrums out of our radar, we all need to recognize that it is the Indian women who have kept this tradition, this heritage and habit alive. They have also ensured that they passed down this time honoured tradition, so that it does not get lost or forgotten.

The training is imparted to kids at a very early age. Make no mistake, when the mom drags the son or daughter along to the market. Nevermind that the son needs to play cricket and probably is the strike bowler in his 'mohallah' or if the girl needs to talk on the phone to catch up on the latest gossip of classmates, a trip to the market means that the son/daughter has to be there. In the market the kid witnesses his/her mother, live-in-action. She haggles with chappal waalahs, with sabzi waalahs and with all the other waalahs. Vegetables are always way too expensive, even if the prices have fallen by Rs 3 a kilo since the last visit. The kids are thus groomed to be our future negotiators at various levels from reducing grocery rates for homes to reducing trade percentage rates between nations.

Modus operandi of seasoned bargainers are many but have largely remained unchanged over years.First there is the simple, start with half / one fourth the quoted price and work towards the mutually agreeable price. The trick here is that you need to identify the right price point where the seller keeps stressing and is unwilling to go below that. Now you have reached the lowest point of seller. But you can take your prices further lower.

At this point, you can state that you are not interested at the current offered price and start a slow walk away from the shop. After a few steps, the seller calls you back with a new price.

The second part is where you buy, multiple goods. You negotiate the bottom most rates on individual items and then use an emotional blackmail when the final bill is made. You ask the seller to round it off to the lower 10,50,100 whatever the case may be.
There are, I am sure, many more methods, techniques and nuances to this art. However, I shall restrict myself on the 'gyaan' part.
I was out with my mom over the weekend and we were at Dadar market buying some stuff from the peddlars on the roads near the station. I never thought of myself as a great bargainer, but I thought I was decent enough. To learn from the expert, I let my mom go ahead and bargain and buy the first round of stuff. Pretty soon the seller realised that I was lost there and for the next item he looked at me and told me that I am offering this at 75. Just to prove that I could also bargain, I looked back with steely determination at the seller, and said, I ain't offering you anything more that 40 for that. Before he or I could react to anything, I received a punch in my abdomen that almost sent me reeling. My mom looked at me and was visibly shocked. She gave me a bag and said, go outside and leave the haggling to me. And without waiting for a reaction from me, she turned around to the seller and said, 25 bucks else I am not buying anything from you. I walked away from the shop dejected, like a kid in class 3 been punished by his favourite teacher.

Once outside, I became more sensitive to my surroudings. There were women everywhere haggling. They were haggling over junk jewellery, floor mats, bed sheets. They were all over the place - haggling. Thats when I realised that bargaining is a battle. Its a triumph of the never give up spirit, a big ego-kick. There is an immense sense of satisfaction and accomplishment when the buyer comes out victorius (or so she feels). It is immaterial whether one is arguing to reduce price by 100 or by 5, one just has to come out feeling victorius. I did not, but my mom was triumphant.

3 comments:

Anonymous said...

good stuff:-) lighthearted after all ur serious blogs..

Anonymous said...

karthik, technically, 74 to 40 wasnt a bad start. But knowing that base figure, as a buyer from where you start haggling, is imp. If you visit a bazaar, you could first stroll for about 2 mins to get a feel of the prices and conduct a small becnhmarking exercise in your mind before you determine whether 50% or 33% is where you should start from.

Good Post!

Shweta said...

hehe, bargaining rocks! :) clearly aunty didn't take u to enough trips and let u play cricket too much when u were 11, lemme take u to linking road someday and teach u!

and agree with rach there :P