Lose the bargain but win the customer

I always admire one of my friend's bargaining skills ( where there is an option of bargaining ) during purchase, not because he used to grab the best deal but how he does it. During my last outing with him we went to a shop to buy some stuffs. The shop keeper asked a price of two hundred bucks for that. Then my friend started all the bargaining tricks and narrowed it down to one hundred and thirty bucks. Then the shopkeeper pleaded that he would hardly extract any profit out of it and asked to bind the deal at one hundred and fifty bucks.My friend said no and finally zeroed on one hundred and forty bucks. Shopkeeper agreed to it. My friend was elated with a sense of pride, again sealing the best deal. Then while returning he told me that the shop is the best one where we can find value for money. I simply nodded.

Now i knew that the product he bought costs only hundred bucks( same brand ) in my place. Shopkeeper set the price high and allowed the customer to bargain. When customer bargained and managed to get that at his best perceived value, he felt good. What i am trying to say is that the shopkeeper took his profit in a big way and customer thought he won also. So for them it was an win-win situation. Thus made the customer a repeat customer as well. All know repeat customer turns into loyal customer bringing the profit to the company. So the shopkeeper lost the bargaining battle but won a customer.