I remember the first time I went shopping in a price-tag free environment. I was 20 and alone in Morocco, and rugs were piling up in front of me. A tray with tea magically appeared. I had no idea how to bargain. Details about the amount of work that went into the rugs and how great a time this was for me to purchase, swirled around my head. It was a disorienting experience. I didn’t even want a rug, but I ended up buying one and paying a lot more than I needed to.
A lot of people are put off by bargaining and don’t quite know how to go about it. Over the last 12 years, I’ve found myself bargaining more than a few times, and I’ve come up with a process you might find useful.
- Start a negotiation at 1/3 the asking price. If the person is talking a lot and making a big show, you probably want to lower this to 20% of the asking price. I know it seems like a lot, but you’re aiming to pay 50-66% of the original price. When they tell you the price, it helps to look hurt or surprised and say something like, “Very beautiful, but I’m only prepared to spend ___.” Then smile. This is the most uncomfortable part of the negotiation but also the most important.
- The dealer will probably respond by repeating all of the special traits of what you’re buying and reminding you that this is ‘quality stuff.’ Then he’ll probably talk about a ‘cash discount’ (if they take cards at all) and bring it down by 5-10%.
- Whatever amount they decrease the price, that’s how much you should increase your bid by. It also helps to wait an uncomfortable amount of time before speaking. Settle in, this conversation may take a while.
- Next the dealer will talk a lot and also wait an uncomfortable amount of time. He’ll tell you he’s already giving you a better price than he should. DO NOT SAY ANYTHING until he gives you a new price. He’s trying to awkward you into raising your bid without having to counter.
- Look dissatisfied and then generally repeat these steps until you’re near the 50-66% percent range you’re aiming for. Then, wait an even more unusually long period of time during which you seem, excited, pensive, and generally deep in thought. Then smile and say conclusively, “OK, (an amount ~10% lower than his last number).” Then offer your hand to shake, and say confidently, “It’s a good price.”
- If he then tries to squeeze an extra couple of bucks out of you, go ahead and let him. There’s no pride to be taken in hustling this guy out of a few dollars that, will certainly mean more to him than you.
Now, all of this advice is for actual high-quality handmade or delicate stuff. If you’re buying something that’s machine made you can normally start closer to 10% and end up paying 20-40%.
On the other hand, there are usually 1-2 shops in a market that will give you a much better starting price than other stores. The main rug in the feature photo for instance. One shop showed a rug of the same size and quality with a starting price of $1200. The shop I ended up buying from had a much less over-the-top dealer and gave a starting price of $450. Our friend Sarah wanted the other two rugs so, we bundled the deal and I ended up paying $350 for the main one in the photo. So, less than 1/3 the price at the first shop but only a ~20% discount from where we actually bought it. Maybe we could have squeezed a slightly better deal, but we were happy with the price. Point being, it pays to get initial quotes from a few places.
Also, my experience comes mostly from Morocco, Egypt, and Turkey. In South America bargaining is less of a thing, and people will kind of stop talking to you if you start as low as I’m recommending here. I look forward to trying this method in India and South East Asia in the coming months, and I’ll amend this post if I find things are drastically different.