Observations, deductions and feelings fueled by tequila, tea and tobacco

Negotiation in services

In Economics, Simply Life on January 11, 2008 at 14:35

We Indians love negotiating. Its almost like embedded into our genes. However, is it always a wise thing to do?

When buying/hiring services, as against buying products/goods, should one really be pushing the bar in negotiations. Yes, most formal service contracts include SLAs but try asking your plumber for one, or your barber. Ever tried that with a cabby or an autowalla?

Products are material, with clear warranties / guarantees tied in. And if it doesn’t perform, or turns out to be a lemon, you can always go and haggle for a replacement. But when its a service, what do you care more about – that you get to the appointment on time or that you haggle with the cabby for Rs.20 on a Rs. 10 fare distance.

How do we successfully negotiate in everyday services while also ensuring that QoS stays upto the mark. Help me.

(I guess the solution has to be a mix of game theory /eco, purchase behaviour / mar and social linkages and idea propogation / ob)

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