Dubai: Consumers don't have to go through group-buying companies or be a part of an online community to snag a bargain. If they're seeking the same thing, smart consumers can marshal their own group and pitch the retailer a deal.
Jenny Haddad, who owns DubaiBabies, says she has had customers scoring baby products at lower prices, thanks to the good old-fashioned technique of collective haggling.
"I've been approached to give discounts to a group of mums and I always gave up. Also, if you approach me and say for instance you're from a group of 10 mums who are willing to spend Dh100 each on baby blankets, I would be open to offer a good deal," Haddad says.
It's not only small retailers who are open to the idea. Saji T.S., manager at Dimension Health and Fitness Club on Shaikh Zayed Road, says people who sign up as a group can get a special price. "Normally, we give about 10 per cent discount. Prices can vary. If you go for a corporate deal, I can work out a special price with the top management," he says.
At LuLu Hypermarket, granting huge group discounts is not highly encouraged, but people can still pay less when they buy electronic items and they know how to negotiate. Don't bank on getting 50 per cent off retail prices, though, given the retailer's very low profit margins.
"As a general policy, we don't offer group discounts especially on groceries because our prices are already heavily subsidised. Our profit margins are very thin," says the company's spokesperson.
He admits that they had consumers in the past who negotiated for group discounts. "A group of consumers can approach our customer service or the general manager. Maybe we can work something out, but again, the discount may not be very big, considering our low profit margins," the spokesperson adds.
He says the new group buying business model probably works best for small operators who are willing to subsidise significant price reductions just to generate consumer traffic and brand awareness.
