Haggling in a weak economy is OK, really

Haggling is old retail strategy many consumers are too shy to exercise, but The New York Times says major retail stores like Best Buy, Circuit City, and Home Depot are more open to price negotiations thanks to the Internet and a sluggish economy.

Earlier this month, a survey by ChangeWave Research found that consumers aren't spending money on electronics and predict sales will drop sharply in the next 90 days slowing down business at Best Buy and Circuit City. Last year, Circuit City and CompUSA closed down many of its stores due to the increasing competition coming from online retailers, some of which provide customers with shopping comparison tools, product reviews, and RSS feeds of falling prices. No wonder big retailers struggle to stay in business.

The Times says this year stores are telling salespeople that negotiating is acceptable. Kathryn Gallagher, a spokesperson from Home Depot, says the store has adopted a more "entrepreneurial spirit" that gives sales people the power to negotiate prices in order to retain customers. So the question is, now that retailers are more open to bargaining, do you think you'll negotiate the price on your next big ticket item?

Haggling can make some people feel uncomfortable, so here a few tips to help you through the process:

You have to ask

I've worked in retail before so I know there's always room for some negotiation, but it's up to you to initiate the process. Sales people will rarely offer to drop the price unless you say something. Just a few weeks ago, I managed to negotiate the price down on an already marked down high-definition JVC GZ-HD7 camcorder based on prices I found online, and guess what? I didn't even have to ask. I simply mentioned that one of their competitors had a lower price (which they did) and the sales person said they could match the price. I actually knew the retailer could do this, but sometimes it's better to let the sales person offer the discount to eliminate some of the awkwardness that comes with haggling. It doesn't pay to be too aggressive when negotiating, but if the sales person is not willing to work with you, you should simply ask a different sales associate or talk to a manager.

Knowledge is key

Before you purchase electronics, you want to do some research. You should read unbiased reviews, compare prices, check stock, and if it's something you need right away, then find out which local store has the best price. Consumers today have many choices and tools at their disposal, but sometimes they want to be able to buy something at a store and take it home the same day. In this case, I suggest you get familiar with price matching or price guarantee policies the store may have as well as price protection policies that guarantee you a low price even after you've taken the item home.

Impulse buy

You've obviously done your research, but what about those spur of the moment purchases? When I purchased my camcorder, I wasn't really planning on buying it that day. I had done the resesearch and knew I wanted it, but the price was still a little too high for me. After months of waiting for the price to  drop, it finally happened when I least expected it. Since I wasn't near a computer, I called my husband and asked him to do some price comparison online while I shopped for other things. This is how I was able to negotiate a price I thought was fair. That's one way of doing things, but if you have a mobile phone, you can also check out comparison services like Frucall and Slifter.

Walk away

Being turned down is part of negotiating, so be prepared to walk away if you're not comfortable with the final price. I know it can be hard to do when the deal is too good, but you have to be genuinely be willing to walk away, otherwise the sales person will know you're bluffing and that puts you in a bad bargaining position.

I offered a few more tips in an earlier post. Honestly, I've never had a problem negotiating prices, but what about you? Have you had any problems asking for a bigger discount? Share your stories or tips below.