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Tuesday, January 27, 2009

How to Haggle - General Advice and Guide

Haggling is a concept which has been going on for hundreds of years in many cultures around the world. It relies on the basis that the buyer and seller can agree on a price which suits each of them before the transaction is sealed. The contention arises as the merchant wants to sell at the highest price but the buyer wants to deal at the lowest.

Before You Haggle

Think Before You Buy Ask yourself whether the item you are buying is sensible because you will have to carry it for the remainder of your journey. If you consider shipping it home by sea or air, ask yourself whether the cost of this will be too high.

Know What You Are Buying If you know what the product is worth at home you can gauge what the price should be. Always approach a merchant with a price in your head you would like to pay and one that is too much. If an item seems to be too low in price than it probably is not especially if it is a craft.

Observe The Location If you enter a big market that clearly is a big tourist trap then you may struggle to get a really good deal. The merchants in these areas know you are tourists looking to spend money, and they know that you have a lot of it. You will therefore not get as good a deal as you would in less tourist oriented locations such as side streets or on roadsides.

Appear Confident You should try not to appear nervous when haggling as the merchant may spot this as a weakness, try to take advantage, and rip you off. Show yourself as being confident and if you do not like where the sale is heading then walk away.

Consider Multi-Buys If the merchant has stuck at a price for an item and will not budge say that you will deal if you throw something else in too. Sometimes this technique works and so it is worth a shot. If they refuse turn to walk away and they may agree just to make the sale.

Keep your sense of humour Be prepared to banter. Nowadays, especially in tourist areas, the merchants like to have fun haggling with the tourists. If you are friendly and have a sense of humour then you are more likely to strike a great deal.

Get a pretty girl If all else fails, find a pretty girl to come with you during a haggle. Many male merchants tend to give better deals to pretty girls, I cannot understand why. Grab your mate and use her to get a bargain. It may be a cheap shot but worth a go.

Haggling In Steps

Of course every haggle will be different depending on the item, seller and location, but in my experience below is how it typically goes.

  1. Never accept the first offer The merchant will always start the haggle off with a price much higher than the product is worth hoping that you are naive and will take this as being a fixed price. You are foolish to settle at a deal here.
  2. Half the first offer This will inevitably cause the seller to say he cannot give the item to you at this price and normally some friendly banter follows. Perhaps after a while the seller gives in and agrees to this price. You then have an option of trying to lower the price further or sticking.
  3. Ask for a multi-buy If you are settled at a price more than half the original price then ask the seller to throw in another item you like. This can be a technique to get more for your money or it can show that you are trying to push your luck. Use this tip wisely
  4. Say it is cheaper elsewhere Tell the merchant that another stall is selling the same thing for a cheaper price. Sometimes the seller will drop to this price (whether it be true or not) in risk of losing the sale.
  5. Walk away and say you will buy elsewhere If you cannot get the price down to a range that you are happy with the begin to leave. Nine times out of ten this will prompt them to agree to your price otherwise they will lose a sale.

The Do Nots Of Haggling

Do not repeatedly say how cheap items are in front of the merchant as this can be insulting to them. It may also mean the haggle gets off on bad terms and reduce the likelihood of the merchant wanting to lower their price. If you are striking a good deal, hide your excitement and wait until the seller is out of earshot.

Do not show your money before the deal. Being a tourist you will have a lot of cash floating around your wallet. Make sure you do not count your notes or in anyway show the merchant what money you have as they will mark the item up and make a tough haggle. Only present the cash after the price has been agreed.

Do not be too pushy with the seller. Although they do like a playful haggle if you are too pushy they may not want to do business with you. Stick to your price, propose a multi-buy, halve their offer, but keep playing the game.

Do not haggle for everything you see. For example it is fine to haggle for a pair of shorts or a t-shirt in a market, but you will not get anywhere haggling for a bottle of water or admission to a shrine. Use common sense and judgment.

Remember, haggling is a skill which can only be improved with practice; the more you do it the better deals you will get.

By Alex Williams

For more backpacking information please visit the link below.

http://www.thinkbackpacking.com/ - Information, advice and news for first time and experienced backpackers including visas, insurance, handling money, hidden costs, travel guides, flights and more

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