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."
There are myriad reasons Americans are shoulder-shrugging over negotiating, with these five factors at the top of the list.
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," Hunsaker noted. "This shows that decisions are driven by perceived proportional value and not absolute dollars."
Increasingly, there are fewer opportunities to negotiate the purchase price of products.
“Everything from groceries to TVs (and everything online) has a set price set by the business, and nothing the consumer says is going to change that set price,” said Michael A. Klitzke, CEO at Auto Law Firm, PC, a firm that represents consumers who’ve been compromised by car dealers when purchasing vehicles. “Add to that the fact that employees selling products have no authority to negotiate pricing.”
Take the vehicle market, where some car dealerships offer a stated no-haggle price and claim to provide discounted or wholesale prices. “All of this is intended to convey to the consumer that the best possible price is already available or that the dealership will not entertain a lower price,” Klitzke said. “It's not true, but there is no way for the consumer to know unless they try to negotiate.”
“More Americans are feeling pessimistic and powerless, bombarded by news stories of layoffs, a K-shaped economy, and the power of large corporations.
“Negotiations require optimism, or the belief that more favorable deals are possible if we push back rather than accept what we're told,” said Moshe Cohen, master lecturer at Boston University and author of the book Collywobbles: How to Negotiate When Negotiating Makes You Nervous. “When people feel hopeless or fear negative outcomes, they are less likely to try to negotiate for better opportunities.”
Social media, email, and other electronic media have made Americans less comfortable with direct interactions with others and have not fueled negotiation opportunities.
“Instead of talking directly with sellers, we rely on retail websites and communicate by email and messaging,” Cohen said. “We’re therefore more likely to accept pricing as non-negotiable and don't engage in the interpersonal conversations that build relationships, provide us with information, and allow us to negotiate better deals.”
By and large, Americans have become accustomed to getting information instantly and buying things by waving phones or credit cards over payment terminals.
“We ask AI for information rather than research things ourselves, and we let GPS tell us where to go rather than study maps,” Cohen noted. “Negotiations often require extensive preparation as well as lengthy back-and-forth interactions before a deal is done, and Americans no longer have the patience to go through all that.”
“Tell us the price, and if it seems within our range, that's good enough,” he added.
How can reluctant consumers hit the reset button and start becoming better price negotiators for big-ticket items like homes or cars, and even for minor purchases at yard sales and online auctions?
Try these techniques, say negotiating experts.
The best way for consumers to learn to negotiate effectively is to do their research.
“Make sure you’ve combed through all of your options, and are aware of any caveats that the lender might throw your way,” said Leslie Tayne, founder and head attorney at New York City-based Tayne Law Group. “Having a prepared response for questions the lender will try to trick you with when negotiating will help you be prepared, and the lender will likely take you more seriously.”
Tayne says it’s also helpful to practice with smaller purchases first, such as negotiating at a garage sale. “Practicing (and eventually being successful) will help grow your confidence, and you may surprise yourself at how easy negotiating can be,” she advised.
The worst error a novice negotiator can make is assuming the seller is giving you all of the information.
Consider new-vehicle purchases, where there’s generally no law requiring disclosures before negotiation.
“If something is important, like accident history and the mechanical condition of a vehicle, then ask questions long before talking about price,” Klitzke said. “
Focus on asking the same important question in different ways.
“For example, if prior accident history is important to you when purchasing a vehicle, then ask the seller if the vehicle has been in an accident directly,” Klitzke noted. “Also ask if the vehicle has been inspected, ask about prior damage, and ask about prior paint work.”
It’s advisable to be okay with not getting a negotiated item.
“Decide what you think is a fair price that you’d be willing to pay and prepare yourself to walk away,” advised Melanie Musson, an insurance analyst at Clearsurance.com. “Don’t get depressed because your offer wasn’t accepted. That makes the whole negotiating process seem like something awful.”
“Prepare yourself to haggle and be willing to have some wins and losses as part of the process,” she added.

source