Thursday, November 15, 2012

Is It Really Worth The Haggle?

By Kate Treloar, book purveyor
Here's a short scene to ponder...
SETTING
Adelaide's Pop-up Bookshop at the Adelaide Central Market. Stand is stacked high with good quality reads, mainly literature, classics and bios. The books are looking great, in fact numerous customers need to ask: “Are these books second-hand?”
CHARACTERS
Book Purveyor (BP): hard at work, constantly rearranging and perfecting her stall, loves the offering of books that she has time-consumingly handpicked to ensure her customers have only excellent items from which to choose.
Unappreciative Customer (UC): Has just picked up a weighty Murakami pban excellent choice, madamin superb condition and, clutching her find delightedly to her chest, approaches the Book Purveyor.
(
Meanwhile her partner is roughly reading his way through every book on the stand, bending back all front covers as he goes... GRRRR!!! But that's another story.)
THE ACTION BEGINS
UC: (Holding out the Murakami, priced at $12) Would we able to talk bargaining on this?
BP: (In a calm, friendly tone) I'm always open to discussion, but in this particular case, the answer is “No”. You see, that author and title are relatively hard to come by and in too high demand for the price to be lowered. Besides I literally just put the book out, nobody else has had a chance to see it. So I'm sorry but that price really is 100% non-negotiable.
UC: (Tone becoming slightly aggressive) How about I give you $10 for it then?
BP: (Still calm and friendly, but admittedly this not coming as naturally anymore) In light of what I just explained, I consider that offer a professional insult, so can we please let the matter drop?
UC: Come on, $10?
BP: (Uses great self-control in not snatching the book off the customer and saying something childish – but valid – like “I wouldn't sell it to you for any price now, I would rather throw it in the bin than see you have it!”) You are actually insulting me now, why don't you just leave the book?
UC: (Pays the full asking pricewith a $50 noteand mercifully leaves quickly taking her book-bending partner with her.)
BP: (Is sick of being treated thus and needs a warm double chocolate muffin from the cafe next door to recover.)
EPILOGUE: A short while later a customer asked for a lower price on a different book. His request was assessed on its individual merits and a small price change granted. Everybody else just paid the asking price.


Discussion on above scene...
When is it acceptable to ask for a discount?
We don't get flooded with requests but it happens enough to have prompted some thought on my part as to where I stand on the issue. My conclusion? There are two schools of discount request – one is ok and one isn't, as I will show you below.
  1. REQUEST WITH REASON (RWR)
    In a business like ours, pricing is ultimately a judgement call made on thousands of individual items. It also involves prices which can change over time because, say, information becomes outdated, authors die, tastes change etc. At times (not too often though as the vendor would go out of business) genuine errors of judgement are made and a price no longer reflects the item's true market value. A customer who knows their stuff is quite entitled to POLITELY point this out and negotiations can begin.
    I believe the best test for RWRs is that if the vendor doesn't change the price, the customer usually won't purchase.
    A subgroup of this request type occurs when the price is correct but extenuating circumstances permit negotiation, eg an expensive item or bulk purchase or possibly a pensioner discount.
  2. TRYING IT ON REQUEST (TIOR)
    Wishing you could get an item for less is not a valid “reason” for requesting a discount. This is where the lady in the story above fits in. These people still will go ahead and purchase even if the request is denied. In fact, if the item had been priced lower initially, they probably would still ask for a discount – it's the relative price they care about, not the absolute one.
    I often hear it said that “There's no harm in asking,” however, I hope my little dialogue above shows that this isn't always the case. Nobody goes into Woolies and asks the person stacking shelves whether they can perhaps pay a dollar less for their tim-tams today, thanks. Most tiny businesses like ours are run by hard-working people who don't earn a fortune; it's a labour of love. Our prices are not claiming to be the cheapest on the planet, but then if you want rock-bottom prices there's no way you will get the selection, atmosphere and personalised service we are constantly thanked for. Our prices are fair for what we offer.
    For me, TIORs are at best tiresome and turn what is nearly always a pleasant shopping interaction between customer and vendor into something uncomfortable that needs to be ended quickly. At worst they are downright insulting and refuse to acknowledge the vendor's right to a fair income.
    In conclusion:
    RWR - OK
    TIOR - NOT OK
    :)

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