Americans don't haggle over prices anymore. Here's why |
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Americans don't haggle over prices anymore. Here's why
A new study shows fewer Americans negotiate prices for goods and services — including things like new cars, new homes, and even yard sale lamps
ByBrian O'Connell
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Published 13 hours ago|Updated 12 hours ago
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Vincent Besnault via Getty Images
Negotiation fatigue is rising across the nation as consumers shy away from price bartering over a new car or even a garage sale golf club.
That’s the takeaway from a new Indiana University study that shows fewer Americans engaging in negotiation for goods and services. The data comes from the IU Kelley School of Business, led by David Hunsaker, clinical associate professor of management, who said 95% of U.S. adults covered across five studies opted to avoid negotiating with retailers and other sellers.
"We framed this research around a simple question: When you have the chance to negotiate, will you?" Hunsaker said. "Even in traditional contexts like buying a car, companies now advertise 'no-haggle pricing' as a selling point. Businesses can raise prices by 5% to 11%, and more than half of consumers will pay it."
Here's what’s behind the 'no-negotiating' trend
There are myriad reasons Americans are shoulder-shrugging over negotiating, with these five factors at the top of the list.
It's not worth the effort
The IU study showed that consumers weighed negotiating value by percentile, not by dollar signs. That matters, because Americans seem to require a steep discount before they’ll even consider negotiating.
"On average, participants needed savings of 21% to 36% of an item's price before considering negotiation worthwhile,"........