Gary North

June 12, 2009

One of the advantages of shopping for anything in a small store that sells mostly used goods is that you can negotiate successfully on price. This is especially true in a pawn shop. Always ask for a discount at a pawn shop. This is a good reason for shopping at a pawn shop. The owner is ready to deal.

When a store owner negotiates with sellers to stock the store, he can afford to negotiate with buyers who are ready to buy a lot of stuff in one shot. Pawn shops negotiate with sellers. So do used car lots. Negotiating will not work at Wal-Mart or Target. When prices are tagged with a bar code, and inventory is re- stocked automatically by a computer, the clerks have no authority to negotiate. But, in a store that does not use bar codes, it's usually possible to negotiate successfully.

There is one exception, however. If you bring in a current ad to Wal-Mart, Wal-Mart will match the price. The policy is not to be beaten. Not many people know about this, or else the time costs to the company would soar. Show the ad to someone in customer service. Here are the guidelines:

The more you buy at one time, the more likely you can get a deal at a used goods shop.

There are two main ways to negotiate. First, ask when you start shopping. "If I spend at least $50 today, do I get 20% off?" If he says no, up the ante. "What about $75?" If the answer is still no, walk out. Try another store. Don't waste your time on a hard head.

Second, bring a pile of stuff up to the counter. Say, "If I buy all this, will you give me 20% off?" If you get no for an answer, and no counter-offer, put it all back on the shelves. Or maybe buy one item if it's a real deal. Walk out. The owner will remember you.

You might consider wearing a yellow sweater or something memorably hideous. Wear it the next time you come in. Try one more time in a week or two. This time, ask in advance: "How much do I have to spend today to get 20% off?" If the answer still is, "We do not offer discounts," you'll know. Shop elsewhere.

The pre-shopping strategy usually works in used book stores. There, inventory is slow moving and large. "So many books, so few customers!" Competition from Amazon and Alibris is hurting them.

Most buyers feel squeamish about negotiating. Such customers are a used goods outlet's bread and butter. But, at the margin, owners want to get something in the till right now rather than nothing. They will negotiate if the sale is large enough and the buyer is likely to be a repeat customer.

Speaking of discounts: http://tinyurl.com/mgvops

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