Saturday, August 1, 2015

How to bargain or learn

In Malaysia, fortunately there is very few Malay with the perception that Chinese vendors will give more discount to Chinese customers. This is totally unhealthy and should be removed and replaced with what really happened, i.e. the complainant was a bad negotiator (or bargain hunter) and he/she failed to get a good price for the purchases (full STOP).

Furthermore, why would a Chinese vendor/salesperson want to give discount if in Malaysia, the Chinese is generally perceived as wealthy (another misperception)? Shouldn’t they be charged even more (since they are loaded and probably wouldn’t mind)?

I read with disgust about a Facebook user (Zaff Zuhairi) who claimed that when they (a Malay and Chinese brother in-laws) went to a same vendor (described as Chinese owned) and asked for a price quote for an item, the price would normally be low to the so called Chinese friend whereas higher for the Malay friend. What does this really prove!?

how to bargain

Fig. The FB post was about an unhelpful customer service. The person who posted it had requested that this incident should not be seen as a race matter. Alas, I am sad to see what Suzila Mustaffa and Zaff Zuhairi had written afterwards. It was totally unrelated! BUT I am happy that majority of Malaysians are smarter!

 

Let me tell you something…

If two Chinese friends go to the same vendor at different time (or same time but different salesperson) and made the same request for a price quote, the price would still be different (unless there is strictly no bargaining in the shop, e.g. in TESCO)!

How you bargained or talked to the vendor/salesperson helps to bring the quoted price down. If a person fails to get good price, he/she always has the option to leave, or pretend to leave the shop (in order to get a revision of the quoted price). That’s tactical manoeuvre of a good bargain hunter!

There is no secret to getting a good price (and it doesn’t involve skin colour). I will share those that I am aware of.

  • For a good price, talk to the boss. This will only be possible if the boss is readily accessible to customers. The reason is that the boss will be able to reduce price much more as compared to a salesperson because salespersons are given guidelines on pricing (any revision would require a nod from the boss).
  • Most salesperson earn through sale by commission. If a customer “clicks” (friendly) with the salesperson and make the sale enjoyable, the salesperson would be more than happy to cut a portion of his/her commission to give the friendly customer better discounts (thus earning less from the said commission).
  • Quoted price is usually highest (where bargaining is permitted). It is up to customer to ask for a price reduction and also to PERSUADE the salesperson/boss to further reduce the price. Those who get lowest price are lucky and good negotiators!
  • Cash or credit card? Usually credit card costs more to the vendor/business entity because there is a transaction cost for each sale by credit card. If a customer said, “I am willing to give cash if you can provide a little discount for me?”, there is a chance that the boss/salesperson will think about giving discount seriously.
  • Buy when the price is right. As a customer, when you failed to get a bargain (esp. after you did your homework about the reasonable price), you have the option to try other shops. Don’t jump into a sale at the first visit! That’s not smart. Also, don’t get pressurized into paying when you need time to consider (take a break and revisit the shop once you are sure to buy from them).
  • Price survey. Similar to the previous advice, an organized way to get good bargain would be to do a price survey. Go to different shops and get a list of prices. Then revisit the shop that gave the best customer service and pricing. Sometimes, customer service is as important as pricing. This is especially important if you want to claim warranty or return faulty items!
  • Freebies. If you can’t get a reduction in price for the item. Ask for whatever freebies that they can provide you. Sometimes, the boss set a very strict guideline for price reduction. Fortunately, salesperson can give you some freebies (if available) if they can’t reduce the item’s price further.
  • Country of origin. If you want a cheaper alternative to electronic items, China made ones are a lot cheaper and they last as long as items made from country of origin. Sometimes, the quality is not as good as those made from the country of origin, but my experience tells me they are comparable in most times. If you really want “PERFECT” items, then don’t complain about higher price of these items! For example, Canon cameras made from Japan is ~1.5 to 3 times more expensive than the same camera model made from China. Do note that for made-in-China cameras, some parts are manufactured in Japan (and shipped to China) while other non-essential parts are manufactured and assembled in China. However, the warranty period for both types of cameras are identical, meaning that if the made-in-China cameras are broken, they are replaced in identical fashion as made-in-Japan models. Furthermore, Canon (and other major brands) has strict quality control for made-in-China items that carried its brand name.
  • Learn how to talk to people. Being a customer doesn’t mean that you have to go into a shop and act all defensive and demanding. If you treat a salesperson as another person or better, as a friend, then a big chance would be that the salesperson (or boss) will give you juicy discount (by earning less from their commission or profit). That is part of being a good negotiator/bargain hunter.
  • Don’t be easily affected by sweet talks. Some salesperson would say something like this, “Okay, since you are from the same village (or Kampung) as me, I will give you further discount”, or “Are you Hokkien? Well, I’m Hokkein too, since we speak the same language, I will give you better discount”. All the above sweet-talk examples and the said “discounts” are normally within the EXPECTED price range of what they need to sell to customers to earn profit. Shops normally have a very comfortable range of profit margin and giving off 10% “extra” discount is not going to affect their profit. As a good bargain hunter, we need to push (pleasantly) for a maximally acceptable price reduction. If the price is not right, both seller and buyer can say “no deal”. Don’t be easily deterred by such failure to reach amicable price!
  • There are plenty of other tips which I can’t think of right now BUT what is important is to learn all the above and many more by talking to friends who are into sales. I learnt the above from being a salesperson myself and also by interacting with other salesperson when I am on bargain hunting.

FYI, it hurts me to read about idiots who, when they failed to get good bargains from sales, they readily blamed other people BUT themselves. Worst is when they brought RACE into the picture. If we blame other people BUT ourselves, we will never learn to be a good bargain hunter or negotiator. I chose to learn. That is why I am able to get better pricing for my purchases. I am prudent and objective. I am not subjective and emotional. I hope my readers think the same way.

I am happy that Malaysians are generally smarter than the few ones being highlighted in the news these days.

Happy bargain hunting.