FINANCES : Bargaining Power

A typical conversation with a taxi driver goes like this:“What’s the fare to Kacyiru?” “Five thousand Francs,” the taxi driver answers. “That’s too much!” you exclaim. “How much do you have?” he asks. “One thousand five hundred.” After some back and forth and by the time it is over, you part with two thousand five hundred francs. It is called the power of bargaining. In many places, sellers demand and have the right to ask for any price on any item that they want to. Despite any measures of consumer protection that may be in place it boils down to how well equipped you are in terms of information as you head out to shop. That does not mean that every retailer is out to rob the consumer blind. What it does mean is that it is up to you, the consumer, to make certain informed decisions before we buy. If you want to save on your purchases, no matter what they may be, you must be prepared to do a little homework. The above conversation is one of the ways through which the taxi driver who is the seller gauges your buying power. This is why a white tourist will pay five times more for a souvenir item than you an indigenous Rwandan would. A friend says that in DRC, you pay for any item because of your accent, so the seller must engage you in some jolly talk so he can find out whether you are Congolese, Burundian, Rwandan, Ugandan or Kenyan then set the price accordingly. First, when going out shopping where prices are not fixed, leave your fear of rejection, your shame to ask for a better deal and your arrogance and rude behaviour at home, because these are some of the easiest ways to lose money. By paying more than you should, you are not pleasing anybody except the seller’s wallet while you are making yourself poorer in the process. If you do not know the price of an item, check at least three different places in order to get a feel of the average price. Don’t be afraid to walk into a major furniture outlet to ask the price for a set of chairs. If you are too scared, pretend you want a proforma invoice professionally and by the end of the day you will have six prices or so to compare together with quality of chairs that you have already viewed. Always remember that however little, the money in your pocket is, it is still YOUR money and the seller wants it however little or insignificant it is to his business. Never be afraid to ask for a better deal and do not mix unnecessary temperament with money matters. As Sun Tzu states in his book, The Art of War, “Every battle is won and lost before it is fought.” And so is the business of buying and selling, if you are well informed before making the decision to buy, you stand to benefit most. Ends

Lifestyle

FINANCES : Bargaining Power