NEW YORK (MainStreet) – Retailers and service providers today are increasingly willing – and even expecting – customers to negotiate prices on products, and experts say that even includes your local hair salon, dry cleaning establishment and favorite restaurant.
There has been some recent growth in retail sales in the U.S., but not nearly enough for shops, restaurants and other service providers to take any chances on losing customers. According to the Commerce Department, retail sales remained virtually unchanged in August 2011. Even when you exclude auto sales for the month, retail sales were only up 0.1% in August – hardly enough for economists, or consumers for that matter, to put on their rose-colored glasses.
Along with employment numbers and housing sales, retail sales are one of the key metrics for measuring consumer sentiment. When retail sales are down or flat, as they are now, consumers tend to snap their pocketbooks and wallets shut. So it’s up to retailers to get creative to get consumers back to the checkout counters.
Negotiating prices has long been the bane of retailers in our country, and often used mostly by fruit and vegetable stand purveyors or flea market vendors. But now all kinds of stores and shops are getting into the act, according to Charles Lankau, a business professor and expert in negotiation at Wake Forest University.
Lankau says that retailers are simply responding to reality on the ground – that consumers hold the cards right now and can get as assertive as they want to get the price they want.
“As a consumer in today’s economy, people need to ask themselves, ‘Am I about to spend some money?’ If the answer is ‘yes,’ negotiating is almost always appropriate,” he says. “Price, terms, perks or extras — most of the time they are there if you just ask.”