Is haggling bad for third-world merchants?
Will Wilkinson seems to think so. In a recent post over at his blog, Will explains that on his recent trip to Turkey, he was looking to buy some souvenirs, but knew he was at a disadvantage in bargaining with local merchants. Not only that, but Will-- like many people I know-- says that he's no good at haggling and he hates having to do it. Writes Will: "[P]robably hundreds of my dollars stayed in my pocket because I didn't have good information about the quality of products and I knew the retailer is better at bargaining... than I am." Although haggling does allow merchants to come out ahead in lots of transactions, Will says, "[A]dd up millions of instances of 'I know you're going to screw me,' and I suspect that the average retailer is doing worse rather than better under the haggling system."
Although I don't share Will's distaste for haggling-- I find it an entertaining, sometimes even fun experience-- fixed prices might provide tourists with a bit more assurance that they're not getting completely screwed by local merchants. If everyone's paying the same price, the thinking goes, certainly it must reflect reality at least in some sense. What do you think? Would merchants, particularly those in poor countries, benefit from eliminating the pre-purchase haggling ritual?
Back in March, Gadling talked travel with Will Wilkinson here.
Filed under: Business, Budget Travel













Reader Comments (Page 1 of 1)
May 19th 2008 @ 9:31AM
lu said...
i beg to differ - the average haggler does that for his living and probably wouldn't be allowed into the 'regular market' (not to mention probably have to pay taxes which are carefully evaded in the haggling system) and as it is his (or her) livelihood on the line, they will surely not take a hit. especially when they know there will be someone by if you are not willing to part with your cash.
this coming from someone who has lived in the 'third world' (or as i like to call it, the developing world) for a few years. i am pretty much convinced that all those hagglers are ripping me off at every chance and it becomes apparent when you do the same thing with locals and see what price they pay!
http://www.countingthethingsiknow.blogspot.com
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