As Indians, like most people in parts of the world which have a significant indigenous population, bargaining comes naturally. I vividly remember the markets and how people would haggle for almost everything on sale. It was very tiring but exciting at the same time. People would come back feeling triumphant and sometimes cheated. This was a great way to have a market.
Bargaining
If take a closer look at the process of bargaining, the most vital element as with any form of negotiation,is information. Sellers would want to know how rich or poor the buyers were and buyers on their part would want to know the cost of the goods on sale. Sellers would quote their prices and the buyers would lower it till the point where both parties agreed. Let me break down what effect it really had:
- The buyers would get a feel of the actual prices of the goods
- For the purpose of bargaining,buyers would have to know what ingredients made up the product
- Buyers would have a good picture of the market, prices and timings
- Sellers too could easily achieve targeted and dynamic pricing
- Best of all,it did not need any regulation or authority
Bargaining in the marketplace is rapidly becoming extinct with the growth of organized retail. Today, if we get some discount, we consider that as a bargain and the only information we seek are the prices of similar products across different brands. We have lost our capability to see beyond the boxes for the real value of products. For me, this transition is a defining sign of a shift of power from the hands of the consumers to those of the retailers.
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