Very very interesting article in The New York Times about how big box stores may be open to some haggling over prices of high ticket merchandise.

In the old days of retail you would go to a big box store to get the best price. The haggling was left for independent stores... the old "if I take this refrigerator, stove and washer & dryer can you do better on the price?" sort of thing.It was one of our little competitive secrets.

So now big box stores are going to give their employees latitude to negotiate price with customers. I'll be interested to see how stores will empower $8/hour employees to negotiate $100s of dollars of potential profit for the store. If you're a retailer who plans to do this, I hope you have a great relationship with your employees and very strict procedure to follow. Otherwise, a lot of dollars are going to go out the door.

Maybe that is ok if you are going to do volume sales as these large stores do. But is this a slippery slope?

The article was very good about pointing out how savvy customers are getting- how informed they are about prices and products. The uber-hagglers are doing research online then haggling prices at one retailer, then leveraging that price with another. Three retailers later, the consumer gets the rock-bottom price.

Ouch. Now the chain retailers will get a sense of what independents have endured for years. The old- I'll take you up on the training and information and then buy the product at a discount elsewhere- thing.

Many large retailers have been giving their employees the option to negotiate price for years, it just wasn't widely known. Ever buy a bed? That's where I learned that I don't have the energy or TIME for haggling. Three hours later I got the bed for half the ticketed price (as a favor to me of course- the ONE time the sales associate could do that this month). However, my whole Saturday was shot.

Consumers are already wary about what products really cost. There is a sense that big box stores mark stuff up tremendously in order to draw customers in with a 40% markdown.

Consumers have a pre-conceived idea of what things are worth. Right or wrong, they bring that with them when they shop your store. A successful salesperson will make the sale if they prove the value of that item beyond those preconceptions. Why is this product worth $20? Your answer: It will save you time, make the crafting process easier, it's fun to use, it's the hottest thing with designers, etc etc. It's not really about the quality of the item but the intangibles- the stuff you can't really put a price on.

A customer can pay a few dollars less at another store but at almost $4 a gallon for gas is it worth a second trip? Here's where you have the in. Rather than haggle on price, what added value can you offer that doesn't cost you a lot? This could be a training session, a discounted crop ticket, a few extra sheets of paper, a free refill, etc.

For me haggling is a hassle I prefer not to endure. For the high ticket items?Yes I will do the homework on televisions, appliances and furniture but for a $40 craft item. Just tell me what it can do for me and ring me up!--Beth