All You Need to Know About Bargaining
"A bargain is something you have to find a use for once you have bought it."
~ Benjamin Franklin
“Well, sir, I think this is going to work out for you folks. Let’s see here. We’re looking at a 2026 Chrysler Lanechanger sedan in Ticketmagnet Red with the exclusive all-Gizmo upgrade package. You seem like a nice couple, so I’m going to throw in the floor mats and give you a special price… Hmmm, I’d like to let you have it for that, but let me check with my manager to make sure I can let you have it for such a low price.”
Of course, the manager agrees to the “special price” and the buyers feel like they did some hard bargaining and got a real deal.
Americans are not good at bargaining. They don’t like haggling and are more comfortable paying whatever the seller asks. In fact, Americans find bargaining distasteful.
➤➤ NOTE: bargaining is when buyer and seller discuss how much something will cost while bartering is a swap—something is traded for something else.
In many other parts of the world, people bargain all the time and consider it a normal way of doing business. In America, everyone deals, but not everyone realizes this. When I took some coins to a dealer, hoping to sell them for cash, I was offered something like $180. I waited a while and stared at the coins until the dealer spoke. “How much were you hoping to get?” he asked. I did some math in my head and told him I thought they were worth more, probably closer to $250. He looked at the coins again, offered me $225, and we closed the deal.
The first rule of bargaining is that the buyer should not accept the first price named by the seller. A buyer who is serious should consider that merely an opening move and make a counter-offer.
Always make a counter-offer. Of course if the seller jumps at the counter-offer, the buyer has offered too much. Then the buyer has to decide whether to go ahead with the sale or look for a different item and start bargaining all over again.
The second rule is that the buyer should not rush. The longer bargaining goes on, the more likely the seller is to lower the price.
➤➤ One skill that is very helpful when bargaining is the ability to do math in one’s head. A buyer who can do math without having to write down the numbers or use a calculator can make a good deal very quickly.
If a seller refuses to budge, the buyer has several options.
One option is to walk away and shop someplace else. (There are sellers who won’t take no for an answer. My wife was once cornered by a salesman who insisted she buy an overpriced rug. I had to go from assertive to aggressive to help her escape.)
Another option is to ask about a different but similar item—how it compares in quality and price. Take your time studying the alternative and then say something about how you would much prefer to buy the first item, if only it weren’t so expensive. That may be enough to get the seller to offer a better price on the first item.
Finding “flaws” can also give a buyer an advantage. These don’t need to be real flaws, but they can be any aspect of the item for sale that is less than, or different from what the buyer desires. The buyer may frown and mention that the item in question is not quite what they wanted. Perhaps it is the wrong color, shape, model number, size, or anything. A lucky seller will pull out another one that is perfect. But it is also possible that, since the item in question is not quite right, the seller will agree to a lower price.
Yet another tactic is to “walk away slow”—smile and turn away, taking your time to leave. A seller who feels that he or she is about to lose a sale may be encouraged to call you back with a better offer. For example, we were in Spain and needed to buy new batteries for our camera. My granddaughter and I found a vendor not far from our hotel. I asked about getting batteries, and he told me the price. It was well above what I thought I should pay, so I thanked him and turned to walk away. "Why didn't you buy the batteries?" my granddaughter wanted to know. I turned to her and whispered, "Shhh! Just walk away slow." She looked puzzled, but we started back towards the hotel, walking very slowly. We had only taken a few steps when I heard the vendor call out, "Señor, I can give you a better price." And he did.
A buyer might also try asking about the price for multiple items. If the seller believes a buyer might buy several of something, the price for each item may go down. It’s up to the buyer to decide if having more than one item is useful. This is what I did while eating in a restaurant in Morocco, where I noticed that the kebabs were served on interesting-looking, hand-forged, iron skewers. My wife and granddaughter agreed that a skewer would make a nice souvenir of our trip, so I asked the waiter if I could buy one. He asked the manager, who offered to sell me one and named a price. "What if I buy all six, how much would you want then?" I asked. By buying six, I got a much, much better price per skewer.
When making an offer, the first price the seller asks should be considered the most the seller expects to get. At the same time, the first price the buyer offers should be considered the least the buyer is willing to pay. One morning I was in a store in China looking for a pair of small speakers for a friend’s computer. I found some that looked like the ones he wanted and noted the price. A helpful clerk came over and asked if I had any questions. I told him I was hoping to buy two speakers, and I (foolishly) told him how much I thought it would cost. His face lit up. With a big grin, he told me that the price I named was just fine. He was too quick. It was clear to me that I had offered too much. I thanked him and I muttered some nonsense about needing decibels as I walked away. That afternoon I bought the speakers in a different store for a lot less than I had offered in the morning.
Another bargaining tactic is to offer to “split the difference” between what the buyer wants to spend and what the seller is asking.
Never, ever start bargaining by naming your price. I saw an American woman walk into a jewelry shop in Italy and ask the clerk for something “around $100.” You can be sure that, whatever item he showed her, it didn't cost $100 before she asked. The lesson: never tell the seller what your budget really is. It’s OK to hint at your price range or to talk about your limitations. (I once got a great deal on an item after I explained that I would like to buy it but it would be very expensive to ship it home. The seller offered to pay for shipping!)
Finally, don’t underestimate a seller’s desire to make a deal. Anyone who has worked in retail sales will tell you that, near the end of the day, they would be happy to accept just about any offer if it enabled them to finish their shift and go home. I had a garage sale a few years ago, where I was trying to get rid of many items that were no longer of use to me. After hours of sitting in the driveway and making one sale at a time, I was thrilled when a woman came over and asked me, “How much for all this stuff?” pointing at the remaining items. I did some quick math (in my head) and calculated how much it would cost if I added up all the items. I told her, but then I offered to sell it all to her for about ¾ of that. She agreed, and ten minutes later my driveway was empty and I was relaxing because I was done for the day. I could have driven a harder bargain, but it was worth it to me to shut down the sale.





