Tips for Bargaining Abroad
My friend & I had some pretty successful negotiations for various Thai souvenirs on our recent trip. And I enjoyed comparing our very different bargaining styles more than I did the actual process.
Bargaining is such a personal thing. Some people are comfortable, some are not. I personally would prefer just to know what the lowest preferred rate I could get is and be done with it, while my friend loves the challenge.
She views it as a game, so her approach is to start almost insultingly low in order to meet in the middle on price
- She first asks what the price is, then decides what price she’d be thrilled to get it at and offers a little less. Depending on the item, she typically starts at roughly 25% of what they ask. Ex: They say 2000 baht, she offers 500 baht (wanting to get it for 800-900)
- When they counter offer, she expresses mock astonishment at the price “oh no, 1800 baht is way too high†and usually waits for them to make a second counter offer.
- She barely increases her second bid (550 baht), setting the stage for an animated banter of numerous counter offers, achieving success about half the time.
My approach is a less playful. I know what I want to pay and I stick to it come hell or high water
- I’ll look at the item and decide what I value it at before I ask the price.
- Even though the opening prices is always way out of proportion to what I want to pay, it feels like it would be insulting to offer them something at a fraction of the price (which is I why I dislike bargaining). So I just tell them that I feel bad about saying what my offer is, unconsciously (although I guess now it’s consciously) setting low expectations by telling them “You probably won’t be interested.”
- They usually come back with “no, no, give me a price” and pretend to be shocked but willing to work with me. My starting price is only a little below what I want to pay, so at this point I pretty much go up to the price I was willing to pay and stay there.
- They counter. And I just say, “I’m sorry, I don’t like it that much.” They come down a little lower and I just look sad (cause I am) and say “I just can’t do that, thank you though†and start to walk away.
- At that point they usually call out, “ok, your price (or something within a range) or they go back to what they were doing before I came in.
In the example of the purse, I found one I really liked and was willing to pay 600 baht (~$20), but the shopkeeper’s starting price was 1500 baht. I just told her it was too expensive and she wouldn’t like what I was going to offer. She pressed, and I almost sheepishly said 500 baht.
She exclaimed in mock horror and took it down to 1100 baht. I said I could go as much as 600 baht. She gave me 1000. I told her I really liked it but couldn’t pay that much. “Come on lady, give me something more, how about 850?†I looked longingly at the purse but told her I didn’t value it that much and started to leave.
“Fine, 650. You get it for 650.†Having decided 600 was my limit, I didn’t want to pay even ~$2 more, so I just thanked her and decided to leave. That’s when she hurriedly agreed to 600.
A few rules of thumb both our styles share:
- Know what you value the item for so you don’t get caught up in the moment and wind up paying more just to “win.â€
- Environment influences your success – how is important is your business to them? Is it a slow day or are there a lot of shoppers. Are they in a main traffic pattern or are they out of the way?
- Bundle items together when possible to get a better price. You can often get a better deal with quantity.Â
When I was negotiating for some hammered stainless steel silverware he asked how many, I replied 6 or 10 depending on the price. I got the price I wanted for 10 🙂
Based on “market research†this past week, it looks like my friend’s approach will usually get a price about 10% cheaper, but mine usually has a higher success rate once negotiations start.
What is your approach or funniest bargaining stories?
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Heels First is the travels and tribulations of two twenty-something frequent fliers jumping into the world of travel. Join Keri and Jeanne as they tackle mileage runs, elite status, and of course–the perfect travel accessories.
I should start by admitting I don’t often shop, but I definitely choose my price ahead of time and stick to it when I am bargaining. I am always 100% willing to walk away (and not just as part of the game) so that makes it easier to stick to my price.
Another technique learned recently is to count the money out for your lowest offer. Every time I did this, the seller’s immediately agreed.