Temper Negotiating Tension

“Temper” is one of those words showing why English is hard to master. Among the meanings as a verb are both to soften and to harden. The meaning I’m aiming for in titling this post is “to dilute by the influence of something else.”
     I regularly hear from my consultation clients and workshop participants questions about negotiating with shoppers and reports of emotional tension accompanying the bargaining. There are advantages for the retailer in maintaining some tension during the process. Researchers at University of Maryland found that during the back and forth of negotiating a purchase price, the shopper will feel better about the final decision if the retailer waits a while before responding with an okay or a counteroffer during each round. The shopper interprets the hesitation to mean he’s gotten the best possible deal.
     When the tension becomes too great, though, the shopper might bolt from the store or showroom. That’s bad. One way to temper the tension while still using the silent treatment is to smile gently and nod. Another alternative is to smile broadly and joke around.
     A few years ago, I heard a story about a used-car dealer showing his shopper a 2005 Chevrolet in excellent condition and saying, “The price is only $7,000.” The customer replied, “I’m willing to give you $3,500.” The salesman nodded, then grinned mischievously, before responding, “If at all possible, I’d prefer to sell you the whole car.”
     Use humor with caution. We want to be laughing with the customer, never at the customer. Also keep in mind how history suggests most shoppers prefer not to negotiate. It was in 1846 that Alexander Turney Stewart introduced price tags to American retailing. A.T. Stewart’s Marble Dry Goods Palace in New York City was unusual because of its huge size, offering both luxuries and commodities in the same store, and what is thought to be the first use in America of street-level plate-glass display windows.
     Mr. Stewart said that the hard negotiating over price—at the time, the prevailing practice—left enough bad feelings among shoppers to interfere with customer loyalty. Most consumers viewed themselves as less skilled at haggling than were the retailers, who did it repeatedly each day. The customers often came away feeling they’d been exploited.
     The introduction of fixed pricing was largely responsible for the rapid growth of Mr. Stewart’s retail enterprises.

Click below for more:
Check Your Optimism When Dealing with Vendors
Negotiate Through Shopper Rituals
Respect Customers with Fixed Pricing