Introduction

You could write books about the ways a crafty and less scrupulous salesperson can maneuver you into paying too much for items. It is done all the time, and you don’t even realize it most of the time. My uncle, who owned a major independent furniture store, used to say, “We only have one price, and it is whatever we think the customer will pay.” The first and best way to protect yourself is to have a reasonably sound idea of what the item should cost by comparison shopping on the internet. Some of the tips below may open your eyes and help you plan more carefully when purchasing items, such as jewelry, furniture, and cars.

Comparison Shop Before Going to the Store:

I was reading a fascinating book about the House of Rothschild and how, during the early 1800s, their lines of communication, networking, and banking facilities were so strong that even Queen Victoria sent much of her official correspondence via the Rothschilds’ private dispatch service. Many things changed with the advent of the telegraph and the railroad, equalizing the speed at which competitors could access the news and communicate with others. The Rothschilds lost much of their advantage. The Internet has, in our age, equalized the power of the buyer and the ability to research an item and compare its prices across different stores. Before you buy something, you should know it is worth and how much it is selling for elsewhere. Not only would you avoid overpaying, but in many situations, you can also show this information to the salesperson, who will then match the price.

Comparing and shopping for certain products can often be challenging due to factors beyond your control. Take mattresses, for example—many models from the same manufacturer look nearly identical on the outside. The only way to differentiate them is by their labels and model numbers. Retailers that sell large quantities of a product sometimes have manufacturers assign exclusive model numbers just for their stores. So, while most mattress stores might carry a mattress labeled as model 123, a particular store could sell the exact same mattress under model 888. This tactic intentionally makes it difficult to compare products by model number. If you come across two items that look similar and are from the same manufacturer, it’s worth investigating further—they may actually be identical.

Buy Price Not Discounts

Many studies have shown that consumers often buy for the discount, and the magnitude of the discount motivates them far more than the actual sale price. In my Master’s of Business Administration (MBA) courses, we learned that many stores would take an item and mark it up to be twice as expensive, and all they needed to do was sell one of those items at a highly inflated price, even if it was to a friend of the manager. Then, the store could offer the same item for sale at 50% off, and people would buy it at the full, regular retail price because it was on sale. Don’t look at how much you’re supposedly saving; instead, focus on how much you’re actually paying for the item. While my situation is probably not typical, I was considering buying a relatively expensive item at a 50% discount for $650. My gut told me something wasn’t right, and the next day, I went to a competitor’s store and bought the very same item at the regular price of $525.

Don’t Be Afraid to Negotiate:

‘It pays to negotiate, and places that you wouldn’t think would negotiate often will adjust the price. My brother was a salesman for a very high-end major clothing and merchandise store. He frequently asked the department manager to lower the cost for a particular customer. My brother didn’t care; he just wanted his commission. If you are uncomfortable and it matters to you, give the salesperson a good story. “My boss refused to give me a raise, and I can barely make ends meet. Do you think you can talk to the manager? XYZ dollars is beyond my budget, but I can pay ABC dollars.”

Look at the Difference in the Tag

When you enter a furniture store or other department with high-end items, you will sometimes see a tag attached to the item displaying the price. Although all the tags may look similar, if you look closely, you may notice differences. For example, if the price was written in red in some stores, the salesperson could discount it x percent. If the price was in blue, the item was sold at a minimal discount. If the price was written in green, it indicated that the price was highly inflated, and the salesman could offer a discount of up to half if the customer pressed for it.

I would Do That, but my Partner/Manager Won’t Allow Me

When I went up to college and was going to buy a car, they explained to me some of the most prominent deceptive techniques used by salesmen everywhere. I was warned against finally agreeing to a price with a car salesman, only to tell me after all negotiations that he now had to check with his boss. Usually, he’s not checking with anybody because he already knows what he can sell it for, and anything less goes from his commission.” My Uncle told me that when selling furniture, he often said he had to check with his partner. Then he would go upstairs for a cigarette and let the customer stew for a while, worrying that he would not get the great deal he had worked out with my uncle. Of course, he never did.

You Overhear a Private Conversation:

A couple of times over the years, when I was buying new cars, the salesman would go out to check with his boss if he could make the deal equal to me. Suddenly, I would hear what was theoretically supposed to be a private conversation, where the boss says, “You know, George, you can’t sell it at that price because we can’t make a profit. It’s too low, so you must ask for more. We can’t stay in business at that price, and you should know better. Don’t do it again.” Of course, this was all play-acting to set the customer up for a higher price, and I didn’t fall for it. Don’t you either..

Don’t Think You’re Going to Set a Steal

As we learned, there are many unscrupulous salespeople who use highly deceptive practices, so you must be wise, objective, and willing to walk away to get a good deal. Years ago, a furniture store in San Francisco known as “[No Names, Ted Don’t Want to Get Sued] Furniture Company, which advertised frequently on the radio and TV. When you went in to see a salesman, he would make you repeat everything three or four times, saying he was hard of hearing.

Most of the furniture was on an open mezzanine (second floor). Whenever you asked about a piece of furniture, he would make you repeat it many times until you were yelling. Finally, when you found the ideal piece you wanted, he would yell down and say, “Hay, George, how much is that gold sofa with the wooden legs.” George would yell back $1,200.” What the man would say, “talk louder.” From the first floor, the man would back louder, “$1,200.” The man would then smile, turn to the customer, and say, “$800.” It was amazing, Dad said, how many people immediately purchased, thinking they were getting a real deal. The key here is that if something sounds too good to be true, you can bet it is.

Understand High Pressure Techniques:

As Google AI says, “various high-pressure tactics often [use] manipulating other’s emotions and creating a sense of urgency. These tactics include making exaggerated claims, using fear to create a sense of urgency, appealing to a customer’s ego, or making it difficult to opt out of a sale.”

The timely sense of urgency arises when the salesperson says, “It probably won’t be here at the end of the day,” or “We only have one more in stock.” The play on emotions is statements like, “Don’t be cheap; you can afford it, and you’ll love it,” or “Everyone has one, and you should, too.” Others appeal to your ego, “You are smart enough to realize the value of this product,” or “Don’t let your spouse think you are a cheapskate.” Examples of making you feel guilty about buying the product include, “Here is a free ____, now let me tell you about ___,” or “OK, if I can get my boss to agree, you will buy it at this price.”

If you are unsure, one of the best responses is to say, “I want to think it over.” It is not a yes or a no but an indefinite delay. If you don’t want the item, say “no.” Don’t elaborate or justify your reasons; say no and quickly leave.

Bottom Line:

Salespeople are not your friends, so use your common sense.

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Ted is a retired attorney, so he is writing only as a layperson. This article provides general information only and should not be considered as specific advice for any particular situation. It is provided without express or implied warranties of any kind, including but not limited to implied warranties or merchantability or fitness for a particular purpose. If you have a specific problem, consult a CPA, attorney, or doctor for advice. Sorry, my attorneys made me say all that!