February 4, 2011

The Fine Art of Haggling - 5 Tricks You Should Use to Score that Awesome Souvenir!

One aspect of traveling that I absolutely love is buying souvenirs while on the road.  I'll get big display pieces, shot glasses, t-shirts, and just about anything that looks neat.  Some people tend to shy away from buying souvenirs, which can be tacky and generally crappy quality.  But every once in a while though, there will be a real gem that is for sale that you absolutely must have.  You look at it, and there is no price on it:  the haggling game begins.

Unfortunately, there are no clear cut rules to haggling.  In Egypt, for example, it is common place for the initial price of an object to be up to 10x higher than the final sale price.  Offer to pay for something at 1/10th the price in China, and prepare to have the seller become offended at you.  Finding a balance is a difficult thing that should be learned on a country to country basis. 

There are, however, many techniques that you can use to your advantage to try and get the price tipped to your favor.  The following are 5 of my personal favorites that I have used or seen while abroad.  Each helped get the final price to drop quickly.  In all cases, it is never recommended to let the seller know the price you actually would pay, as it will never go lower than that.  Start off less than what you are comfortable with, and try and find a common ground with these tactics!

Pander to Local Customs


Appearing to follow local customs may not decrease the final price you pay, but it will certainly start the initial price out in your favor.  While in Egypt, I would speak to the sellers in my basic Arabic, giving them number quotes in their language.  They were so impressed that I knew Arabic that I had earned a new friend, who was eager to give a better deal.  That 10x markup instantly became 5x markup.  Not that it helps in the final amount you will pay, but having the seller like you and be on your side is the fastest way to getting an acceptable final number to both parties.  Know a proper greeting in the local dialect? Give it a try!

You might not always make a friend quickly this way, but if you do know a bit of the language and keep it to yourself, you might overhear conversation between two employees deciding on what their final cost would be.  There were a number of times in Thailand I wish I knew numbers in Thai just for this very reason.  If I could have picked up those numbers in what they were saying, I would most certainly have got a better deal on a few items along the way.

Speak a Foreign Language? Use it!


Although this tactic works better when you are with someone else, the effect is still the same.  When you are speaking in your mother tongue (that is obviously not English) you have the advantage of discussing what you are willing to pay without the seller understanding you.  This is essentially the reverse of the above technique.  Unless you meet sellers who are fluent in a number of languages, which is more common than you'd think, they may get a little unsettled by your discussion and drop the price while you talk amongst yourselves!

Two Spanish friends used this tactic while in Sapa several times, and spoke to each other entirely in Basque, much to the confusion of the sellers.  When they removed the control of the seller to their advantage, the price began to fall accordingly. 

The Second Party

If you are with a group and do not speak a second language, do not be discouraged!  Having a second party puts you at a greater bartering position as you have someone to discuss your thoughts with rather than being on a pedestal alone.  Since the seller now has to please two people instead of one, watch the prices slowly come down in your favor.

A second technique that should be tried when having a second party is using the additional person to scout out other vendors, or even make up fake quotes (within reason).  A quick statement of "This scarf was 20,000 dong less at this vendor over here" can instantly make that price materialize very quickly, even if it is not entirely true.

Please the Boss

Couples have a great advantage in the haggling art for one reason, the spouse wears the pants.  Any sales person who has a sense of humor, or a spouse, understands what its like to have someone who says no to a purchase.  While being eager to buy something, have your partner play the role of money manager.  From time to time while haggling, turn to them and ask if that is okay.  A firm no from the spouse sends clear signals to anyone who has been in a relationship before.  To make this deal work, you have to please the boss, and there is no room for negotiation.  After a while, when the seller is starting to sweat, the boss can relent some especially if the final price is close to what you are willing to pay.

This tactic is our personal favorite, as I first got to use it while Angie and I were traveling in Thailand.   Rather than just having her say no, I would throw in the line of "the boss says no," just to show that she is in charge.  Every time we got a laugh, and sometimes even a dropped price immediately.  Once we were blocked in any discounts, and the boss relented for a purchase of a Thai silk bed spread cover for $30. 

Walk Away

If the previous tactics fail, always be ready to walk away.  This tactic will let the price drop considerably from what you were last offered if it is too far from what you'd like to pay.  The reason for this is simple, it is either sold for a discount, or nothing at all.  But this may backfire on you, because if you do not take a deal you are being offered, it might not be offered again if you decide to return!

Depending on the season and number of people around, this tactic can have a stronger effect.  Just remember though, if you are offered a price that you originally stated, be prepared to pay it.  It is rude to offer to buy something for a price, then get an agreement and not pay.  So do not begin to barter if you are not interested in purchasing the item. In that case, walk away before being labeled a rude tourist.  Otherwise if you do the seller might give a bad deal to the next person that comes along wanting your item!

My Best Haggling Experience


Going back to Egypt, my favorite haggling experience was buying a set of medium/large canopic jars from a tout.  I pulled out a number of tactics to get the initial $160 price down, and even started to walk away.  His desperation for a sale in low season with no crowd made it difficult for him to even let me walk away, as he kept trying to sell me other items while I tried to walk away.  He even wanted to trade, and looked through my entire bag to find something worth trading, most of which I refused because they actually had value.  All I had was a little less than $20 in currency between Egyptian Pounds and US Dollars, a pen, and a half used bottle of tiny hand sanitizer.  That sealed the deal, and I walked away with my heavy set of canopic jars.  It is a good thing that I had the rest of my money in the money belt on my waist, or else the deal would have not been as fun!

----------------------------------

Just remember, no tout will ever sell anything at a loss.  If you have not offended them to the point of them giving up, it is likely that you are within a range they might sell at.  On the same hand, if it gets to the point where you are arguing pennies or a few dollars on something worth far more, just pay the extra amount.  You will have made a great contribution to a local in what seems like so little to us.  If you are so concerned with the extra pennies, buying that souvenir might not be the smartest idea to begin with. 

So get out there, haggle, and reap the benefits!  Have a great haggling story or technique? Share it below!


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10 comments:

Really good tips there, especially about 'pleasing the boss'. Jack and I now only have to decide who gets to be the boss (probably me :))

I think it works better if the girl is the boss, but I've seen it played from both angles. The great thing is that it seems real regardless of who does it.

Great tips!! I know it is sometimes hard to haggle but you get better after buying some things. Walk away if my favorite tactic. It works for me most of the time.

I like to walk away and see the price come down a lot too. Only once or twice has it ever happened that I was allowed to walk away, and I knew my price was too low. Often times they'll get an offer to within 10-15% of what I wanted to pay, and I'll relent since it ends up only being a dollar or so.

Great tips! I never used to be able to haggle that well, but over time and constantly travelling, im getting better at it. I love the walk away-it always works the best for me!

It definitely takes some practice to haggle. It is a bit daunting to try and tell someone what you want to pay when they're the ones selling it, but it is a necessary evil. Still, even if we get ripped off or pay higher with one person than the stall next door, the best attitude to the whole situation is to be happy with what you paid. That is the best victory haggling can give you.

What a good read. 'Please the Boss' is a great angle and I've never thought of before... can hardly wait to put that in practice. Even if it doesn't work, sounds fun.

Thnx

Pleasing the Boss is a universal truth. The thing is, everyone we tried it on found it funny, which was probably the best part of it all. The boss saying know is almost the same effect of walking away, without actually walking away.

Great tips. Haggling also turns souvenirs into great conversation pieces. Hand sanitizer for Canopic Jars... Awesome LOL

Thanks Mike! I do think they are great conversation pieces as well, and even if i am not discussing them with someone they still bring back good memories for me

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