To Bargain or not to Bargain...

[Avalon]

I, being an antique dealer, have bargaining in my blood. Both when I buy it and I sell it. There's been lots of times where I have bought an item (actually almost everytime I buy an item), that I know that I will sell the item for many times what I have paid. It's part of the game, I call it the food chain. I buy it from some, they make some money, I sell it for a bunch more to someone who either cherishes it or makes a profit off of me. I think it's more about if people are happy with the transaction. The pharmacy fine with giving 10% off because they made a big sale, the consumer leaves happy knowing she got a great deal. I mean I guess it's sort of greedy, but so is most commerce if you really look at the nitty gritty of it.

[ryberg]

Originally Posted by jtm1631

Personally, I hate the whole process of the "negotiation" [substantial edit] because I walk out of a store wondering if I could have gotten a better price and if I just got taken. This is the same reason why most people hate the car dealership experience. It never matters what price you paid for the car, you always think you have just been taken for a ride (pun intended).

This happens to be an eloquent summary of a lot of why I sort of had to put my foot down with the ownership here early on and tell them that we were not going to negotiate rates every time someone new walked into the hotel (as seems to happen at a number of places). Of course, it's even worse at a hotel, because instead of the customer walking out and never seeing another one, instead they all stay around for a few days! The prospect of hearing stories from our guests like the famous stories on airplanes where people next to each other compare how much they paid was not far short of horrifying. And I think it cheapens the value of the relationship between the establishment and the customer, to boot. It makes it all a game instead of more honest, straightfoward dealing.

Anyway, thanks, jtm1631!

Steve

[birdman]

I have no idea what the mark up is at the pharmacias in Mexico, & guess it doesn't matter. The fact is the store owner felt he had struck a good deal by discounting the sell by 10%, probably hoping that through word of mouth he could make several more of these $150 + sells to the touristas. There's an asking price & a selling price in evey transaction, finding the best deal is why it's called shopping.

[sctx]

Jtm brings up a valid point that I have to deal with in the landscape construction industry.
Basically, I sell a retail good that involves not only variable material costs but also variable labor costs, thereby making my retail cost to the customer variable and negotiable.... And every customer KNOWS THIS, some play for a discount indirectly, some can be very direct and use competitors as a bargaining chip, and some just accept the price a non-negotiable because they judge the cost to be a reasonable value for the product. THE WORST customers are those that beat on you for the best deals.. because they assume since they beat you up for a better price, you were REALLY trying to screw them in the first place. The second worst are the people who THINK they could have gotten a better deal somewhere else but were too lazy to shop around
I don't blame vendors in Playa too much for the fluctuation in prices, especially since they deal directly with a world economy. The price is negotiable or it's not... and the product is a reasonable value to you or it's not.
Retail is a different industry than hotel service, but Steve, what do you think about MOTEL 6 here in San Marcos Texas charging $49.99 for a double room on Tuesday and then charging $110 on Saturday???

[Nerak936]

Originally Posted by birdman

I have no idea what the mark up is at the pharmacias in Mexico, & guess it doesn't matter. The fact is the store owner felt he had struck a good deal by discounting the sell by 10%, probably hoping that through word of mouth he could make several more of these $150 + sells to the touristas. There's an asking price & a selling price in evey transaction, finding the best deal is why it's called shopping.

Thanks, birdman. In my original post, I said I didn't "blame" the woman for asking for a 10% discount. Why would we? The seller could have said no. Just as when bargaining a price for an item takes place. The seller can refuse the price offered and take the chance on losing the sale or counteroffer. The woman didn't do anything wrong or unethical.

I can play the game of bargaining with the best of them. It all comes down to what I want to pay for something. I'm not out to "get a steal"... I only know what an item is worth to me. I'm always gracious if the seller and I can't agree and will simply shrug my shoulders, smile, say "thank you" and walk out. Sometimes while walking out my price is suddenly met, and sometimes it isn't. It's a chance I take. And so does the seller.

Last year while sipping margaritas at Casa Denis on Cozumel, I spotted a young woman carrying a baby walking by selling small woven pocketbooks. We made eye contact and I motioned her over. While she coming toward us, I said to David, "I don't care what her price is. I'll pay it." Paid $10 for an item that I probably could've bought on 5th Avenue for $3. I didn't care. That baby just got me - hook, line and sinker! We joked later that the baby might've been a prop to get sympathy from the tourists, but I didn't care. Hopefully it wasn't..... but no matter. I could afford the $10. Haven't used the pocketbook yet!

[Nerak936]

Originally Posted by sctx

... what do you think about MOTEL 6 here in San Marcos Texas charging $49.99 for a double room on Tuesday and then charging $110 on Saturday???

(Sorry, not Steve here. Only me being a pain in the butt.)

Isn't this basic economics? "Charge what the market will bear."?????

If they can sell their rooms at that price, why not?? If they don't usually do that and do it only in a crisis, then it's illegal. Example: During the Blizzard of '78 in Mass., lots of people got stranded in hotels, restaurants, etc. The places that were charging $20 for hamburger to their "captive audience" were wrong... it's illegal to do that. Not sure, but I think hefty fines were issued for that crap.

But if a hotel can still rent out its rooms at that rate and its competitors are doing the same, is that wrong?? No. It might suck, that's true, but they're simply charging what the market will bear.

[sctx]

Yeah Nerak... it's capitalism in it's prime form... and a bit of Darwinism too... the small guy has to be fast and flexible or he gets eaten by Wal-Mart... thats how I survive competing against the corporate monsters... that and just providing a much better service and product

[Nerak936]

Originally Posted by sctx

Yeah Nerak... it's capitalism in it's prime form... and a bit of Darwinism too... the small guy has to be fast and flexible or he gets eaten by Wal-Mart... thats how I survive competing against the corporate monsters... that and just providing a much better service and product

Service is key nowadays. I own/live in a 6-unit apartment house. I need to have landscapers mow the lawn in the warm weather and a plow guy plow the driveway/parking area in the winter. I have never shopped around for a better price for either of them. The most important thing for me is that they show up when I need them and do a good job. I might be able to get a better price and save a few bucks... but I feel a certain loyalty to both outfits (small companies) and the fact that I can depend upon them is worth muchhhhhhooooo pesos to me!!!

[Ginger]

And the hotels in Playa do it as well, Scott, just not on on a weekday/weekend basis, but check out their Christmas/New Years' week rates compared to their rates the week before, and you'll see the same sort of capitalism at work, it's astounding. It's all about supply and demand, I 'spose.

Doesn't make me feel any better about it, and I'll complain to the bitter end about how I'm charged double or triple for that week when I vacation there, but I know that if I owned a hotel there and I could get away with it, I'd be doing the same thing.

[Manitou]

Originally Posted by GerardoSolexico

The other day I was at a Pharmacy in town and next to me was a lady that was buying a ton of medicines (over 12 packages of the same one). They were something like $15US each. She turned to the person next to her and commented that in the US they each cost over $60 US. Then she asked the guy at the counter for a discount and got a 10% off the price.

Being a firm believer in what goes around comes around, who's to say what she thought she was getting such a good deal on were indeed the meds she gets in the US? Or, perhaps it was Levitra and her poor hubby had one of those dreaded four hour erections!

[sctx]

Originally Posted by Manitou

Or, perhaps it was Levitra and her poor hubby had one of those dreaded four hour erections!

Yes, but they do warn you to "Consult your physician immediately".... makes you think... damn it was cool to be 18 !!!

[Susie Q Roo]

Originally Posted by sctx

damn it was cool to be 18 !!!

Apparently I never knew any 18 year olds...

(Did I say that out loud??)

[Michele]

Originally Posted by Manitou

Being a firm believer in what goes around comes around, who's to say what she thought she was getting such a good deal on were indeed the meds she gets in the US? Or, perhaps it was Levitra and her poor hubby had one of those dreaded four hour erections!

I have a funny Levitra/Playa/Bad behavior story but it is definitely <img src='http://smileys.smileycentral.com/cat/23/im/ot.gif' border=0></a>!! Anyone interested?

[sctx]

Originally Posted by Susie Q Roo

Apparently I never knew any 18 year olds...

(Did I say that out loud??)

[SunKneeMarie]

Originally Posted by Michele

I have a funny Levitra/Playa/Bad behavior story but it is definitely !! Anyone interested?

Bring it on, Michele... I'll be waiting in the OT section with my bowl of popcorn!