When a person wants to saves money during buying anything of its use it’s called bargaining, it’s a trick of saving money.
Bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service debate the price and exact nature of a transaction. If the bargaining produces agreement on terms, the transaction takes place. Bargaining is an alternative pricing strategy to fixed prices. Optimally, if it costs the retailer nothing to engage and allow bargaining, they can deduce the buyer’s willingness to spend.
Bargaining means you are trying to get the best price without compromising on any features or benefits. It is competitive, aggressive and a win-lose strategy, and neither party is generally satisfied. On the other hand, negotiation happens in an environment of trust and openness. It is a win-win strategy where both the parties leave the table satisfied.
One of the most effective bargaining methods is to ask if buying multiple items together merits a discount. This is especially helpful when shopping for gifts.
Purchasing Negotiation is part art part science.
If you have been led to believe that you must be the smartest man on planet Earth to be a successful negotiator, it is not so. Apart from having good skills as a negotiator, the most important factor is to Prepare.
This is where the psychological process comes in that you need to use persuasion, communication, verbal & nonverbal skills.
Basically there are 2 types of objectives and approaches to purchasing negotiation. The first is the Confrontational or Lose – Lose approach where you don’t care whether the suppliers makes or loses money. You just bang on the supplier to give you 20% discount no matter what.
Lose – Lose Approach
We call this lose-lose because while you may get the discount you want in the short term, that will come at the expense of quality, delivery times etc. So at the end while the supplier loses in the discount given the buying organization loses more than the discount given.
The second approach is that of Win-Win Negotiations. For example, when you write a price negotiation letter to the supplier, you want to be fair to the supplier and ensure that he makes a reasonable profit but he delivers the products/services with the highest possible quality and on time.
While Win type is most talked about it happens in only about 20% of cases. Plus this is not easy, depending on who’s supervising the purchasing department and company culture.
Deals fall through every day. But businesses that depend on long-term customer relationships have a particular need to avoid win-lose situations, since backing out of a bad deal can cost a lot of future deals as well. Some buyers resort to hardball tactics even when the salesperson has done a consummate job of selling. The premise is that it costs nothing to ask for a concession. Sellers can always say no. They will still do the deal. But many sellers—especially inexperienced ones—say yes to even the most outrageous customer demands.
These is the scenario buying and selling of goods .does not matter you are rich or poor bargaining is the trend and behavior of people .they likes to do these things because it’s a kind of sense of achievement after bargaining .