Recently we did some renovation at home which involved buying a few big ticket items. As I had read a lot about supporting local vendors, I drove to the stores after doing some browsing online on big marketplaces for options.
My first reaction on the purchase experience was the level of willingness to negotiate an offer when the bill is running close to a lakh. Every shopkeeper wanted to keep the conversation on the MRP, declining to accept credit cards or were trying to pile on more charges like delivery, installation etc when preparing the bill. In all, the transparency was poor and the mindset to extract as much as possible from a lead was set in stone.
The same I had observed from a medical store nearby, with aged people at home; the maintenance medicines for a healthy life add to substantial costs, so I tried asking the store keeper that I will place order with them month on month but let us work out a deal because the big medical chains give me 20% and I am willing to take a cut for convenience. The shop keeper flatly declined saying that he does not do business less than MRP and I can continue to shop at the retail chains, he does not need my business.
Why is this happening? We perceive a loss to be greater than a profit of same magnitude. Winning a gold coin may not be equal in magnitude of happiness compared to the sorrow of losing a gold coin. That is what is at play at the small vendors. They do not see the overall profit gained in the transaction instead they read the money lost on the transactions that could happen on MRP. This clouds the judgement even if this can tun into a repeat business with a steady cash flow.
On browsing more for stores, finally I found places that gave a good deal even bettering online deals. These were businesspeople who are in the same business for generations even though their turnovers were small, looks like the family wisdom is passed on as a trade secret and I ended up noting their numbers to give to friends who will have similar needs.