The Art of Haggling: Your Guide to Unset Prices Abroad
When you shop at home, prices are usually set in stone. But in many parts of the world, like Mexico, Turkey, Vietnam, Peru, China, and West Africa, you’ll often find yourself negotiating the cost of everything from souvenirs to taxi rides. This can feel a little awkward or even anxious if you’re not used to it. Am I overpaying? Am I being too aggressive? Is this even the right thing to do?
Don’t worry; it’s a common and accepted practice! Here’s how to navigate the negotiation process so both you and the seller feel good about the deal.
Be like Dalton in Roadhouse
Like most Gen X parents, I will often quote 80s and 90s movies to help raise my kids. In the movie Roadhouse, Patrick Swayze’s character is a bouncer who teaches his staff to always be “nice.” This movie metaphor is not perfect; my wife says I try too hard to get the boys to watch my movies, but it does help get the point across. When it comes to interacting with strangers, merchants, employers, coworkers, pretty much everyone, be bold and persistent, but “be nice” and respectful.
A couple of years ago, we went to Mexico when my oldest graduated from high school. To prep for the haggling, we first asked the hotel staff if haggling is customary where you’re going and what a fair price for certain items might be. We also tried to observe local shoppers.
Once you’re in the market, don’t be shy! Merchants expect you to negotiate, and it’s not impolite. Learning a few bargaining phrases in the local language can also help.
Remember, a good deal is a win-win. The seller should make a profit, and you shouldn’t feel ripped off. One tourist took this tack. “I’m more than OK if I pay just a little more than a local would, but no one wants to be taken advantage of. It’s about mutual respect.”
Shop Around and Set Your Limits
If you see something you really want, comparison shop before you commit. If the item is unique, you can always go back for it.
As you browse, set a mental price limit to avoid overpaying, and make sure you have enough small cash denominations. It’s also a good idea to practice your haggling skills on a less expensive item first.
Keep in mind that merchants in high-traffic areas often pay higher rents. You might find better deals if you explore side streets.
Don’t Sweat the Small Stuff
Consider the amount you’re negotiating over. It might be worth simply paying the asking price if it’s just a small difference. A small amount might not matter much to you, but it can be significant for many sellers.
Be cautious with “knockoffs” of traditional cultural products. Buying these can undermine the livelihoods of artisans who specialize in genuine handmade items.
Finding the Middle Ground
Ready to negotiate? Here’s how to approach it:
- Ask the price, but don’t offer immediately.
- Inquire about a discount, then propose a lower number. One hotel staff member suggested simply smiling and telling them, “What would be a better price for you?”
- A common starting point is to counter a seller’s initial offer at anywhere from 25% to 75% of the asking price, aiming to meet somewhere in the middle. Erring on the low side gives you more room to negotiate upwards.
- Hold your ground if you believe your offer is fair, based on your research and local input. Don’t rush to increase your offer to fill an awkward silence. Respectful confrontation and disagreement are not to be feared.
- Be prepared to walk away. You’re under no obligation to buy. A polite “No, thank you” can sometimes prompt a pushy seller to offer their rock-bottom price. This was a big one for my sons to wrap their arms around. “No” is an OK answer on both sides.
- You can often get a better deal if you buy multiple items at once, whether it’s carpets or postcards.
Keep a Positive Attitude
A fun, playful approach generally works better than being aggressive. The process was a good experience for my boys. Teaching them to try to build rapport with the merchant before talking numbers is a great skill for sales, networking, or dating. My youngest, the extrovert, tried to do it right away. The first couple of attempts, he couldn’t make a deal, but the third time, he connected with a younger merchant about his collectible sneakers. He bought a wrestling mask, and both parties walked away happy.
Being polite opens a lot of doors. Negotiating prices is all a game, and it depends completely on the mood — theirs and yours.