India: scientific approach to a mystery

I am already at home in Russia, yet there is so much more to write about India. I'll continue posting here, so keep an eye on this blog. I set up my old-and-new blog about Russia HERE - you may also check out that one now and then. Also, slowly but surely I am uploading the pics from the travels on which I haven't posted yet at the upgraded (hurra!) Yahoo.

Name:
Location: Russia

Friday, March 03, 2006

Bargaining in India

I suppose everyone knows that bargaining rules in India: unless it’s packaged food with the fixed price stamped on the package (sweet Soviet times) or branded and well-reputed shops – you can bargain. And you definitely should.

Well, in some places you bargain harder than in others. E.g. in Palica Bazar, you ask for price and simply ruin it: you end up paying 50 Rs instead of 500 Rs quoted first. While in Lajpat Nagar Market you do not get reduction more that 1/3 in most of the cases – they over-quote price just a bit, so there is not large margin of safety to cut off from.

It is expected that if you do not know the price level (being a newcomer, lazy to figure out or just stupid) or you do not care to bargain that - be so kind to pay more. Otherwise your luck is in your hands – go ahead! I want to mention that it’s naïve to refer to bargaining as cheating. This is not cheating in the sense everyone knows that bargaining is expected. At this point, I am inclined to relate bargaining with the notion of collectivistic cultures. In the latter, the person’s values is determined through belonging to some group or organisation (as opposed to individualistic ones where people are expected to stand up for themselves). In collectivistic cultures they really distinguish between in-group and outgroup members. The latter is treated very hostile until they manage to prove their right for membership. That’s is why without being perceived as a true local (ingroup member) you’ll be taken advantage of. Good incentive to acquire some knowledge of local settings.

Bargaining is a process of trying from both sides. Depending on the look of the person she/he’d be given a reasonable (also good, also acha) price. Since then it’s up to the customer how much he/she wants to pay. You can cut 1/3 from the price on fruits vegetables, ½ and more from rikshawmen, for clothing accessories and shoes – up to ½ of the price.

The keys to success are two: local knowledge and passion for establishing some justice. After a while you’ll get a sense of the fare price level. It’s all about getting stuff from the same person as this may reduce necessity to bargain, but does not eliminate it totally: my fruit guy always gives me oranges for 20 Rs and I buy from him, every second day, but at times even he tries to get some extra rupees. If u go to market for shopping (getting many things than success in bargaining is pretty much about flow – one you get into the mood you do not see any limits to cut off the price and you bargain like hell. The only case I feel embarrassed to bargain is when I buy something from women (you do not often see them as salesmen, though). I really have no explanation for that – so I just try not to get anything from them.

I never pay more than I think (or know) is fare. After all it’s a matter of principle rather than that of money. I don’t like when someone thinks I am stupid enough to pay more. And then it’s like a game every time – sort of gambling: would I manage or would I not this time.


People are smart here when it comes to charging more. Typical tricks

he says To the question kitna? (how much?) he replies: It’s 2500, but just today it’s 120
it means Fare price is 600
why he says it To make you feel you’ve been already given a concession, so you should not ask for more.
what you should do Bargain down from the lower price.


he says It’s fixed price, mam, I cannot change it
it means I’ve fixed it just now for you
why he says it He shifts the responsibility over the price to some abstract standard. So he means he is not in the position to change it.
what you should do You take it or you leave. Nothing is fixed in India – there are lots of places with floating prices.

he says Says nothing, but look at you indulgently as if you are asking for impossible – getting moon from the sky
it means Tries to make you feel embarrassed for the very fact you’ve asked for the reduction.
why he says it Conscious effort to put some physiological pressure on you
what you should do Establish eye-contact with confidence and with judging overtone say you are not new here.

he says Starts putting price down, but just a bit (110 instead of 120)it means This is your discount, ok?
why he says it Wants you to feel he is trying his best just for you
what you should do Oh, he can do so much more ;o) go on, you are on the right track


Some advices on bargaining strategy follow:

- be offensive. Once I saw a friend of mine doing the following: he came into a shop, picked a bag and asked for price. 150 it was. Then confidently and freely he hugged the shop guy and said, “70. 70, ha? only because friends”. Somehow he switched the typical roles (offensive salesmen and defensive shopper). He took initiative and the shop guy just got speechless as he did not expect those advances. My friend got the bag. For 70 Rs.
- never disguise your interest or excitement regarding the items you want to buy. You should look as if you could not care less. Salesmen really watch you and they notice if you put an eye on some items – so the price would be quoted to you respectively. One of my friends when bargaining with ricksawmen made this indifferent face, was looking aside and did not come close to the vehicle (very good when there are a few of them around.) All that to show she does not really need this particular one to take her home; she can wait and get home at fair price.
n do not try to justify the price they quote to yourself – do not you do their job. Do not think: it’s cheap, it’s a rare item, it’s late in the night, it’s a poor men. You help him to convince you and he’ll managing well even without your help, believe me.
- try to change the accent (making R very prominent or using HIndi-specific melody when speaking English), using Indian words (sometimes has tremendous effect) may help, but mind you that prices are over-quoted for natives too.

-----------------------------------------------------------
Arguments given by Indians when bargaining

….We live here only… Don’t you tell me the price is this…
… We buy it from you every time. Don’t you tell me the price is this…
… We know the prices here. Don’t you tell me the price is this
------------------------------------------------------------


All in all, remember that you do not have to take the price for granted – it’s a starting point for the discussion. By learning to handle this aspect of Indian reality you develop very important qualities such as self-confidence, ability to defend your point of you, patience and ability to influence people. Not bad returns for the time spent in bargaining.

0 Comments:

Post a Comment

<< Home