Haggling in a foreign country can be overwhelming if you aren’t used to the practice. In many paces, vendors expect you to haggle on the cost of goods, and they include this assumption in the listing price. In other words, if you simply pay without haggling, you will overpay every time.
Learning how to haggle will not only save you money, but it’s also a great way to immerse yourself in the local culture. Plus, once you get the hang of it, haggling can be quite fun.
Here are a few tips to get you started before you arrive at a foreign market.
Scope out the area for places selling the item you want
Once you’re in the market, it’s important to get an idea of how many options you have. Often times, there are numerous stands selling the exact same merchandise. Use the competition to your advantage, and don’t settle for the price offered at the first sunglasses stand you visit.
As you walk around the market, take notice of the price others pay. If you see someone pay ฿150 for a pair of sunglasses, you know vendors will sell at or below that price in the future, even if the listed price is much higher. Simply observing is a great way to get a feel for how much you should haggle at a given location.
Decide how much you want to pay before you open the conversation
Before you engage with a seller, you should have an idea for how much you want to pay. As you negotiate, think of this price as your North Star. You should open with a price below your target price, while the seller will likely start higher. Throughout the haggling, you will both move your prices closer to the middle, essentially navigating towards your North Star.
Without a target price to use as a benchmark during negotiation, it can be easy to get carried away and settle for a price above what you were hoping to pay. Always start with a plan.
Lead with a question
My favorite way to open a negotiation is by asking the seller how much they want, even if the price is listed clearly. Often times, they repeat the listed price, but it’s also common to receive a price already below what is stated on the tag.
Leading with a question is an easy way to open the haggling process, while pushing the seller to name their price first. It is also a great way to open if you are unsure whether haggling is appropriate at your location.
Try the simple, but effective, “how much for this?” when first approaching a vendor, or alternatively ask for a discount to the listed price. Both of these methods are respectful in most circumstances, and they open the door for the seller to propose a discounted price as their first offer.
Make your initial offer below what you want to pay
You should always start with an initial offer below what you hope to pay. Keep in mind, your offer should be reasonable. For example, in Southeast Asia, you can can typically negotiate to cut the price in half. In other areas of the world, the potential for haggling can be much different.
As a rule of thumb, make an initial offer that puts your target price halfway between the seller’s price, and your offer.
For example, assume a pair of sunglasses is listed at ฿200 in a Bangkok market. If you hope to purchase them for ฿150, you should initially offer ฿100.
- Seller offer: ฿200
- Your target price: ฿150
- Your offer: ฿100
As mentioned above, the amount of room for haggling depends on where you are in the world, so make sure to do some research before you go. If your offer is too low, you won’t be taken seriously, and you could risk offending the merchant.
Walk away
If the seller is resistant to lowering their price any further, and it’s still above what you hope to pay, don’t be afraid to walk away. Even if you really want the item in question, walk away. You can always return later to buy.
Walking away is a good approach for a couple reasons:
- It leads to discipline in your approach to haggling, and you are less likely to overpay if you are comfortable walking away. As mentioned above, you can always return 15 minutes later if you can’t stop thinking about those sunglasses that got away.
- The seller might lower their price as soon as you start to leave. In Bali, we walked away from a seller who repeatedly called lower and lower prices after us as we walked further away. We returned once he was well below our target price, and purchased the item for half the number he offered when we decided to walk.
