On your trip to China, you’ll find yourself in a unique position. Vendors and businessmen throughout the country will expect you to pay outrageously high prices for items you could purchase for just as much at home. There is a simple problem with this philosophy. Most of the items you can buy at home are made in China, shipped, slapped with import and export taxes, sold to wholesalers, and are then marked up again before they are placed on your store shelves. By the time you get to it, the price is significantly higher than it was in China. Why, then, should you pay as much for an item in China as you would in your own country?
The answer? You shouldn’t. In China, and in many foreign countries, bargaining is part of the shopping experience. Almost every vendor you meet is willing to bargain – even the ones who act like they won’t. Follow these tips and you’ll make it out of the marketplace with high quality items at a fraction of the original asking price.
Set A Budget
The very first thing you should do upon determining you want to buy an item is to decide what price you want to pay. What is the point of bargaining if you don’t know where even you want to stop? Setting a personal budget is great for a couple of reasons. First, it gives you the ability to compare the price to what you would pay at home and determine what price would be fair. Second, knowing what you are willing to pay in advance will make you a stronger bargainer and will give you the ability to walk away from the transaction without guilt or regret if it turns out you aren’t getting what you asked for.
Once you’ve determined the price you want to pay, start the bargaining even lower. In many cases, you’ll only offer around 10% of the original asking price up front. This leaves plenty of room for back and forth exchange, at which point the seller will either drop to the price you have in mind or you will make a conscious decision to move on to the next vendor. While some people feel it’s disrespectful to ask for such a small price, remember that the vendor knows you are a tourist and is trying to make as much profit as possible. He will be willing to walk away with some profit as opposed to none, especially if he’s not losing money. Never feel guilty about the bargaining process – it is simply part of the culture in China.
Learn The Local Language and Market
Sadly, while the prices on the items you want to purchase may be marked up, a local might pick up the same item with the same price tag and still walk away paying much less.
Start by learning a few Chinese phrases. Opening your transaction with a personal greeting such as “Ni hao ma?” or “Ni hao” (how are you?) will endear you to the vendor. While you might not be able to conduct an entire conversation in Chinese, you will have shown the vendor that you are friendly and willing to make an effort.
Once you’ve learned a few key phrases, practice your bargaining skills on smaller tourist trinkets. This will give you a little bit of bargaining practice on something that won’t break the bank should you make a mistake and agree to a price that is higher than you anticipated. You’ll build up some confidence and bargaining will become easier than ever. Once you’re able to conduct a smooth transaction, go back and negotiate for the higher priced goods you really want to take home!
As mentioned before, watch what the locals are buying and pay close attention to what they are paying, especially if you’re going after one of the same items. Knowing what someone else paid will give you an idea of how low the vendor can go while still making a profit.
Try not to act overly interested in the product you’ve chosen. Your eagerness to finalize a purchase will only show that you are desperate and the vendor will be less likely to lower the price. After all, you’re acting like you’ll pay more – and you probably will!
Finalize The Purchase Or Walk Away
After a certain period of time, you either need to finalize the purchase or walk away. The vendor will keep you haggling forever. After all, he has all the time in the world while you’d like to move on and see more of the country. Don’t rush the transaction but if the seller doesn’t come down to the price you expect within a reasonable amount of time you should begin to walk away.
If you do walk away, do so very deliberately but very slowly. A frustrated seller will likely continue to lower his prices as you go. Pay attention and if you hear the price you were looking for, turn around and go back. If not, continue to move on and you will likely find another vendor who is willing to negotiate.
Remember, negotiating and bargaining is traditional, not rude. Be polite and reasonable while dealing with vendors in the local market and you’re almost guaranteed to walk away with the items you really want.
I usually walk away:-)
Walking away is definitely key and so is sticking to your budget. Having said that, it is definitely harder to do than to say. We live in such a privileged society here and are so rich in comparison that the guilt that follows upon walking away, when you know that the little they are asking can mean so much. . . it’s hard. Good article!