It may not occur to customers, but big retailers are willing to negotiate prices. That would seem to make intuitive sense in a period when shoppers are a scarce as hen's teeth.

According to The New York Times, "Shoppers are discovering an upside to the down economy. They are getting price breaks by reviving an age-old retail strategy: haggling." The paper says this kind of transaction is now common place at Best Buy (NYSE: BBY), Circuit City (NYSE: CC), and Home Depot (NYSE: HD).

There is a real danger to the practice. While it may keep customers in stores and get rid of inventory, the retailers are already faced with tight margins. Selling products at or near cost may not help large stores. It may hurt them by encouraging large portions of their customer bases to ask for much better prices. By going from chain to chain, a smart buyer can work a price way down.

National chains may want to look at the math. Letting customers walk out the door may be better than driving a culture where everyone thinks he can get a deal.

Douglas A. McIntyre is an editor at 247wallst.com.

Cutting deals at Best Buy and other megastores originally appeared on BloggingStocks on Sun, 23 Mar 2008 13:40:00 EST. Please see our terms for use of feeds.