Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy
Haggling Strategy — Definition, 7 Haggling Techniques + Examples
As taught in the Negotiation Course for Procurement Professionals / ★★★★★ 4.9 rating
What is haggling?
- Haggling is a strategy used by professionals to bargain persistently.
- The haggling strategy makes you think about how good you are at negotiating and where to improve.
- Master the art of negotiation by understanding strengths and weaknesses to ensure success in procurement and management.
What is Haggling Strategy?
Haggling strategy refers to a specific negotiation approach in which two parties in a transaction engage in a back-and-forth exchange of offers to reach a mutually acceptable price or terms. Rather than accepting a fixed price, the buyer proposes lower offers, and the seller may counter with higher ones until both agree on a compromise that feels fair.
This type of strategy is common in informal markets, such as bazaars, flea markets, car purchases, and real estate deals, and it focuses primarily on adjusting prices and conditions through dialogue and concessions.
7 Haggling Effective Techniques
Haggling is a negotiation strategy where buyers and sellers discuss and adjust terms to reach a mutually acceptable agreement. Effective techniques can help maximize value while maintaining a good relationship between parties.
1. Preparation and Research
Prepare before you start negotiating by learning the market price of the product or service and what is reasonable to expect. Knowing the value helps you recognize if the offered price is too high and structure arguments for a lower one. Preparation also boosts confidence and reduces the chance of accepting the first offer. Without it, you are more likely to end up in a weaker position.
2. Be Willing to Walk Away
One of the most powerful tactics is to show, or actually be, ready to leave if the offer does not suit you. This strategy increases your bargaining power because the other party knows you have alternatives (BATNA). If they see you are not desperate for a deal, they are more likely to offer better terms. Sometimes, the seller will call you back and offer a discount just because you started to walk away.
3. Making the First Offer (Anchoring)
By making the first offer, you create an “anchor” around which further negotiation revolves. Later offers are evaluated in relation to your initial number, giving you an advantage. It’s best if your first offer is reasonable but still below your actual limit, leaving room for concessions. Anchoring influences the perception of value in negotiations.
4. Using Silence as a Tool
After making an offer or responding to a proposal, intentionally pause and remain silent. People often feel the need to fill silence, and in that discomfort, they are more likely to concede or offer better terms. Silence can create psychological pressure that strengthens your position compared to immediately speaking again. This simple tactic can be surprisingly effective if you stay calm and focused.
5. Bundling and Trade-Offs
When negotiating multiple items or terms, try not just to lower the price but also to gain additional benefits (e.g., free shipping or a future discount). Offers like “if you do X, I’ll take Y” are more appealing because they seem mutually beneficial. This is especially useful when the seller cannot reduce the price but can add value. Thinking about higher-value gains rather than only the price often leads to better agreements.
6. Feigning Disinterest and Controlling Emotions
Act as if the product is not essential, show neutrality instead of excitement. If the seller sees you are very interested, it signals that you are willing to pay more. Feigning disinterest makes you less vulnerable and increases the chance of getting a lower price. Additionally, staying calm and controlling body language strengthens your negotiating position.
7. Asking Open Questions and Active Listening
Instead of simply asking “Can you lower the price?”, use questions like “What would make you consider a lower price?” or “Under what conditions could you offer a discount?”. These questions help you understand the other party’s motivation and constraints, increasing the chances of finding a solution. Active listening shows respect and can improve communication during negotiation. This skill often leads to creative compromises and win-win results.
3 Real-Life Examples of Haggling Strategy
1. Lakeside Cottage Haggling Example (Buyer & Seller Price Negotiation)
One concrete example describes how a buyer and seller of a lakeside cottage negotiate the price through classic haggling. The buyer makes a lowball offer well below the asking price, and the seller responds with a higher price. Through a series of counteroffers and discussions, both sides try to reach an agreement that works for them.
This is a typical distributive bargaining example, where each party tries to capture more value from the deal. The negotiation ends when they agree on a price that is a compromise between the initial positions
2. Harvard Program on Negotiation – Negotiation Examples
Harvard’s website provides a real collection of negotiation examples (including price haggling) used as case studies in negotiation education. The examples include buying property, international agreements, and business deals where haggling was a key element in reaching an agreement.
These cases teach students how real-world strategies affect negotiation outcomes, how tactics are used, and the implications of different approaches. This is an excellent source for multiple examples of practical haggling and negotiation.
3. Richard Branson Negotiating the Purchase of Necker Island
A well-documented real-life example of haggling involves Richard Branson and his purchase of Necker Island, a private Caribbean island. The island was originally listed for six million US dollars, but Branson could not afford that price and made a much lower offer of one hundred thousand dollars, which was rejected.
After the island remained unsold for about a year, Branson re-entered negotiations with a stronger position and eventually agreed to buy the island for approximately one hundred eighty thousand dollars, with a commitment to develop it within four years. This case shows how patience, timing, and willingness to walk away can significantly improve negotiation outcomes.
The 5 Key Differences of Haggling vs Bargaining
5 Tips to Successfully Haggle
Haggling and negotiation skills are developed through experience, guidance, and careful analysis of various scenarios, rather than being innate. By studying lessons from courses and seminars, individuals can refine their strategy and enhance their chances of successful negotiations.
1. Learn Where to Stop
Surprised that this is the first step in the list? Well, don’t be; learning when to quit is always the first thing to learn when studying how to haggle successfully.
Understand that you will always encounter people who are not easy to budge, despite using anything and everything you’ve learned.
Whether it’s by the book or through experience, there will always be that stubborn human being who will not be easy to sway. In times like those, it’s better to quit.
Never feel bad when quitting. This is not the end of the road for you as a negotiator. It just means that negotiations have stopped, but it doesn’t mean that you are a lousy negotiator.
Only those who can’t seem to move on from a failed negotiation or haggling are the lousy ones!
2. Understand What the Other Party Wants
When using the haggling strategy, you want the other party to accept and understand the terms that you want. That’s well and good, but for the haggling to succeed, you also need to understand what your opponent wants.
And sometimes, you also need to give them a little bit of what they want. Because hey, if it helps you achieve your end goals, then giving the other party a concession may work wonders for you.
3. Understand your BATNA
For those who are not familiar with the term BATNA, it’s the acronym for Best Alternative to No Alternative.
Simply put, it’s that particular situation where you choose to get the best among your other options instead of not getting anything at all.
It is usually employed as a last resort tactic if you’re dealing with someone who may agree to a concession in the end.
While you are not exactly getting what you’re targeting during the haggle, a win is still a win, no matter how small it is. During negotiations, you sometimes have to take the smaller victories at times so you can prepare for the bigger ones. This notion is also called your BATNA.
4. Be Courteous and Considerate
Now here’s a trick question. Is it fun to haggle with someone rude or disrespectful? Of course not, right? So if you’re going to start haggling with someone, always remember to be nice. According to expert negotiators, the chances of getting a good deal from a pleasant negotiator are higher compared to someone who charges in and starts demanding favors or orders.
Of course, there are also times when you need to be considerate of your situation. If you’re trying to get a favorable outcome during a negotiation, you also need to be direct and serious. Sometimes, a negotiator who always agrees to concessions is seen as a weak negotiator.
5. Do Your Homework Before You Haggle
Preparation is one of the most underestimated aspects of successful haggling. Before entering any negotiation, take time to research the market value, common pricing ranges, and possible alternatives available to both sides.
When you come to the table informed, you negotiate from a position of confidence rather than guesswork. Knowledge allows you to justify your offers logically, spot unrealistic demands, and avoid being pressured into a bad deal.
Well-prepared negotiators are taken more seriously because their arguments are based on facts, not emotions. In many cases, preparation alone can shift the balance of power in your favor, even before the actual haggling begins.
Conclusion
Haggling strategy is a negotiation approach where buyers and sellers engage in back-and-forth offers to reach a mutually acceptable agreement. It is commonly used in informal markets and focuses on adjusting prices and terms through dialogue and concessions. Effective haggling relies on preparation, understanding the other party, and using psychological and tactical tools.
Techniques such as making the first offer, using silence, bundling, and feigning disinterest help negotiators maximize value while maintaining good relationships. Real-life examples, from property deals to business purchases, show how preparation, confidence, and strategic concessions lead to successful outcomes.
Ultimately, haggling is a skill that can be learned and refined. Understanding one’s alternatives (BATNA), knowing when to stop, and remaining courteous increase the chances of achieving favorable results. With practice, negotiators can turn haggling into an effective tool for both short-term gains and long-term relationships.
After you read this article, I have created a free-to-download, editable negotiation toolkit template. It’s a PowerPoint file that can help you create the best approach when negotiating with other parties. I even created a video where I’ll explain how you can use this template.
Frequentlyasked questions
What is haggling?
Haggling is the art of driving a price that you want towards the other party.
How to do haggling?
Haggling is done by researching the value, making offers and counteroffers, and negotiating until both parties agree on a fair price.
What is the difference between haggling and bargaining?
Haggling is an informal price-focused negotiation, while bargaining can involve broader terms and formal or informal contexts.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.
