Thursday, September 25, 2008

India Negotiation Tactics

There are no prices in India, anywhere, and everything is up for negotiation. Having negotiated in various countries, with various levels of success, here's a contrast to Switzerland and the US.

Switzerland: The price on the sticker is the price you pay. Swiss salesmen will always insist there is no room for negotiation. Not always true. Sometimes they'll throw in a goodie for free. Some companies will give you a "Neukundenrabatt" of 10-20% for new customers if you promise more business and insist long enough.

US: Before any prices are named, salesmen will go for minutes, if not hours about why their product is the best, and try to get you to connect emotionally to what they're selling. Only then are prices named, once you're predisposed to saying "yes". Price drops happen only after they've talked to their "manager" or some other - possibly imaginary - higher authority. Insist, assert yourself, set a limit, and be prepared to walk out.

India: A price is named quickly, but it can be a long way to go from there: My guidebook suggests to counteroffer one-third of the price they name. I'm often not brave enough to go that low and counteroffer one-half, then listen to them drop the price by 10%, and then pretend to walk away. Usually, this results in another price drop and puts be at around 75% of the original price tag.


Gabor said...

See also the addendum.

Felipe Costa said...

You should go Brazil, Italy or even better... Paraguay!

Any price is fix at these places.

Felipe Avila da Costa