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What’s Contracting?

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Bargaining is a negotiation between a shopkeeper and a customer to reach a mutually satisfactory price. Haggling is a form of bargaining and is common in some regions. The customer asks for the price, the shopkeeper quotes a high price, and a bidding war begins. Eventually, a price that satisfies both parties is reached. Haggling is expected in some cultures and not haggling is considered rude and can result in overpaying. Customers should set a personal limit and treat price tags as flexible.

Bargaining is a negotiation between a shopkeeper and a customer that is designed to reach a mutually satisfactory price for an item. You might also consider haggling to be a form of bargaining and it’s not limited to retail stores. Depending on where you are in the world, haggling can be common or extremely unusual; for people who are not used to haggling, visiting regions of the world where haggling is expected can be very disorienting, and the same is true for people who are used to haggling visiting regions where haggling is not acceptable.

During a bargaining transaction, the customer identifies the item they want and asks for the price. The shopkeeper quotes a much higher price than he expects to get, and the customer should react with shock and disgust by offering a much lower price. This starts a bidding war that is typically peppered with supplemental information. The shopkeeper might, for example, extol the virtues of the item in question, while the customer refers to his family when he dismisses high prices.

Eventually, a price that satisfies both parties is usually reached, and the customer buys the item. Bargaining can take 10 minutes or many hours; especially when dealing with large items, haggling can be time consuming. In the case of large objects such as houses, cars, carpets, and so on, merchant and merchant may also eat together, drink tea, and chat in a friendly way as negotiations proceed.

In cultures where haggling is a way of life, such as much of Asia and the Middle East, it is considered offensive to refrain from haggling. Besides being rude, not haggling is also a great way to get cheated, as tourists often end up overpaying for an item by paying the upfront price quoted. Shopkeepers also believe that every transaction matters, especially the first transaction of the day, and a failure to bargain can make a shopkeeper very angry.

Another important thing to remember is that by asking a price, a customer has made a commitment. While it is common in many Western countries to ask how much an item costs and then decide not to buy it, in countries where people haggle, people only ask for the prices of the items they are serious about buying. Therefore, it’s a good idea to set a personal limit on how much you’re willing to pay, and be ready to haggle when a shopkeeper quotes a price. In regions where haggling is commonplace, it’s also a good idea to treat price tags as flexible.

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