The telecom industry in general, and the cell phone industry in particular, are commonplace for price haggling. Everyone knows that just mentioning the thought of switching cell phone providers spurs the next offering, even without the customer asking for a better deal. But when it comes to shopping at large department stores, I would never have thought about price haggling (aside from stores that price match) until I read the Washington Post’s article “In Tough Economic Times, Shopper Take Haggling to New Heights” (Jan. 31, 2010).
While Michael Rosenwald’s article encourages even the most polished and well mannered customers to at least ask for a discount, I noticed by reading the article’s comments that I am not alone in my discomfort with price haggling.
Defenders of fixed prices argued on two fronts. Some responders commented on a macro level that price haggling harms the overall US economy and undermines the ability for stores to set prices, the importance of sales and promotions. Strong contesters asserted that established US businesses should not resort to the purchasing practices of third world countries. Another group of contesters argued along the lines of Kant. If everyone engaged in price haggling then the entire concept of stores setting fixed prices would collapse. Thus, one cannot ethically engage in this behavior in a retail store, as if one was shopping in an open market. (This is the same argument that you should not drive on the shoulder of the road because if everyone drove on the shoulder of the road then it would defeat your original intent and cause the traffic patterns to collapse.) In fact, this effect has already surfaced in industries such as auto sales and cell phone providers, where it is almost assumed that customers will price haggle, and prices are therefore not considered completely fixed.
Individuals who dislike price haggling may prefer using innovative methods of cutting costs in today’s tough economy, as displayed in Leah Ingram’s recent hype. When it comes to businesses, phone related expenses are great examples of how cutting costs can be easier than spending all of one’s energy on constant negotiations. By migrating one’s phone system to a cloud telephony provider, you can avoid installation or equipment fees, pay as you go and save thousands of dollars a year.
Check out my earlier post about how Ifbyphone saved DiabetesAmerica $240k in a year through their cloud telephony services, and think about how you can cut your own business costs with cloud telephony.
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- Attention SMBs: Beware of Cost Plus Pricing
- Diagnose Your Call Center’s Increasing Costs
- Best Buy’s Misleading Computer Advertising (Updated)
