In many countries, bargaining and negotiating is part and parcel of life. It goes on all around you â it is culture in action â and it is in no way limited to the tourist industry.
In foreign marketplaces, foreigners often tend to feel a little aggrieved that they are being âripped offâ by being charged a higher price than locals, and this sense can colour the tone of negotiation. Better perhaps to accept that most of the people you are dealing with are smart business people with limited resources, seeking to make a decent living, and that in a culture where negotiating is commonplace the first price is expected to be rejected.
This post represents a list of tips and tricks that have been tried and tested by the InsideVietnam team during our adventures in Southeast Asia and beyond. Follow these simple rules and haggling becomes a fun and friendly way to interact with the locals, not to mention a great way to pick up some bargains.
1. Smile
The first rule, and also the most important. In most Asian countries, maintaining âfaceâ is extremely important, so avoiding insult to either partyâs pride or dignity is paramount. Not only this, but good humour is more likely to get you a better deal â and will most definitely make for a more enjoyable experience.
2. Know the going rate
If you want to bargain successfully, you need to have a rough idea of the going rate for what youâre aiming to buy. Otherwise you are liable to aim for a price thatâs unachievably low, or one thatâs extortionately high. Either way youâre cheating yourself out of a good deal.
If youâre travelling with a guide, ask them for a ballpark figure for your item â or, if not, asking around a few different vendors in the area will give you a vague idea of the starting price. Your hotel might also be able to tell you more, or, if youâre looking to buy a more expensive item, you might want to do some online research beforehand.
It may be a little tricky to find out exactly what the local value of an item is, but it will give you an invaluable advantage over the vendor. No doubt, you will suffer early haggling defeats early on in the trip, but you will soon learn!
3. Decide what youâre willing to pay before you start
Once youâve accomplished point two, use this to decide on a price that youâre willing to pay for the item and stick to it. Translate the figure into your home currency in your head to make sure that youâre comfortable (and able) to pay it. This will (hopefully) stop you getting too carried away!
4. Counter a high opening gambit with a low counter-offer
Depending on the item and the context, 50% of the initial offer or thereabouts is reasonable. These two opening offers set the boundaries for your negotiation, and you can be sure the vendor will be aiming high!
5. Negotiate in local currency
In many countries, including Vietnam, you can often opt to pay in US dollars rather than local currency. This will inevitably result in a worse deal for you. Always choose to haggle in the local currency where possible to avoid losing out….and learn a few basic words in the local language.
6. Walk away
The best haggling deals of my life were struck using this tactic â youâll be surprised at how effective it can be. If youâve haggled your heart out and the price still hasnât reached a level youâre happy with, break out the tactical walk-away and youâll immediately be called back if the vendor still has room to manoeuvre. If they let you walk, youâve probably pushed them as far as they can go. At this point, donât be embarrassed to come back and accept their last offer!
7. Go for a multi-item deal
This is another one of my faves. âIf you wonât sell me this for X amount, will you give me this and this for X amount?â is a great way to get a better price â and the vendor gets another sale out of you too. Win-win.
8. Donât get carried away
Once youâve flexed your haggling muscles and driven a few hard bargains, itâs easy to get a little carried away with your success. Donât push too hard â remember, those final few pennies youâre attempting to wring from the little old lady at the marketplace are worth more to her than they are to you.
