Teacher Trekker

Think of negotiating like a dance. Someone has to lead. Will it be you or your competitor? In any negation the person who dictates the situation is in a greater position of control. More often than not they will come out the victor. When shopping at unfamiliar markets, if you don’t know the price or basic negotiation tactics you are going to let the vendor take the lead. They will be in control. Their primary concern is turning a profit and not necessarily giving you the best possible deal. You need to put yourself in the driver’s seat and take control of the wheel. This article is designed to help you save money and get the best possible discounts when shopping at markets.

The Advantages to Shopping at Markets

Regardless of where you are on the planet there are many reasons why you should be drawn to local markets. They are an excellent way to experience a new culture. You will be exposed to countless locals working and going about their daily lives. Some of them may even give you some suggestions only a local would know. You will be introduced to unfamiliar foods and find all sorts of souvenirs and keepsakes.

Whether you are looking for crafts made by local artisans or  cheap illegally produced counterfeit goods there is probably something for everyone regardless of what market you venture into. You can probably find any travel necessity you may need. Unless you go on a crazy shopping spree or make no effort to negotiate you should be able to save a considerable amount of money compared to shopping at stores and malls. For these reasons a trip to the market is about more than just shopping. It’s a travel experience unto itself.

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Rules to Live By…

There are a couple rules that you need to follow when shopping at markets. Never make impulse purchases. You’ll end up overpaying straight out the gate. Never make eye contact with vendors who are selling items for which you are not willing to negotiate. They will make every attempt to get you to purchase something from them. If you are considering buying something, in general, you should be able to negotiate the price down to 30-40% from the starting price. If you play your cards right, it is possible to get even better deals, possibly closer to 40-50%.

In some rare cases and unique situations you could possibly save even more. The best discount I ever got was 10% of the original starting price in Vietnam. This will require you to shop around and do some research. The more prepared you are for the negotiation the better you will make out in the end. It will also allow you to begin every deal and that puts you in control. Think of yourself like a chess master trying to set up your opponent, but your checkmate is getting the vendor to settle on your price. Now let’s look at how to accomplish this.

Follow These Steps from # 1 – # 10

This list is arranged in the order necessary to get the best price possible when attempting to negotiate a deal at any market where there is no fixed price. Follow the sequence of this model by beginning with # 1 and work your way down to # 10. That being said, it is possible to only use a combination of the market negotiation tactics below, but I would recommend using as many of them as possible and in order. If you’re still dissatisfied with the price, that is the point to walk away. Not every negotiation will work out how you want it, but this model will increase the likelihood of you achieving your desired price.

# 1 – Closing Time/Late Evening Purchases

Unless you are intending to go to an early morning market like the floating markets throughout Southeast Asia, I have learned that it is better to shop closer to closing time. Vendors are often willing to settle at lower prices compared to sales during the day. If they did not make their daily quota, they will be that much more willing to make a deal. For example, fruit, especially cut fruit can be purchased for as low as a tenth of its morning price. Cha-Ching! The downside to this is that some vendors may be closing or already closed, but show up in the last hour and you should have no issues finding everything you are looking for.

# 2 – Know the Local Language

Hands down the best way to get lower prices with market vendors is to speak the local language. Generally speaking the higher your level of proficiency the better the deal you will get. You may even get local rates or something closer to them. The less of a foreigner you can appear the better. At a minimum try and learn simple phrases like, “hello”, “thank you”, “how much?” and the number system. They may think you are a foreign local, or they will appreciate the effort you’re making, both of which will often result in better deals. If you do not speak the language, one way to make the process easier, but not necessarily cheaper is to use a calculator to display dollar amounts during the negotiation.

# 3 – Be Polite With Vendors

Just like the old saying goes, “you catch more flies with honey than you do with vinegar,” so be friendly when you walk up to any vendor. Smile! Say “hello” in the local language. You are always more likely to get a better deal if you treat vendors with respect.

# 4 – “I’m Just Looking”

Remember that phrase before you begin the negotiation process with any vendor. Browsing will allow you to get a feel for the market, what items they sell and who sells what. Some vendors will specialize in a particular product, while others have a wider range of choices. Depending on what you’re looking for, you may get a better deal buying in bulk or bundles from one type of vendor rather than the other. More on that in # 8. Don’t be impulsive.

# 5 – Know Your Numbers

Once you identify the items you are interested in purchasing, it is time to start getting prices. Vendors will attempt to begin negotiations right away. Don’t let them. Do your research first! Shop around and get prices from as many vendors as it takes to get an accurate average starting price. Begin with the vendors who offer the lowest starting prices for the items you’re looking to purchase.

# 6 – Determine Your Price Ceiling

Now that you know the vendors’ starting offer it is important for you to determine your price ceiling. You need to go into the negotiation knowing the maximum price you are willing to pay for something. If you don’t, you may get talked into paying more that you should, because they presented the perception of a good deal. You need to set them up to meet your price and have them feel good about the sale. Don’t settle on their final offer! Settle on yours!

# 7 Lowball, Lowball, Lowball

Keep in mind that this is where the dance really begins. Take the lead and start the negotiation. You know their starting price and your price ceiling. You need to “lowball” your first offer or deliberately give a much lower price than you are willing to pay. Don’t go so low that it is insulting. You may fail before you even start. The vendor will counter your first offer. It will probably be too high and you will need to counter his offer. Bump up your price just slightly. He will then lower his price. This will go back and forth until a fair price is reached for both parties.

During this process remember to make sure to remain calm after you present an offer or receive one. The person who reacts first often loses. Vendors may even sweeten the deal if they think that you are disinterested in their offer. If you are still in disagreement, continue to use the lowball strategy while advancing through Steps # 8 – 10.

# 8 – Buy in Bulk or Bundles

One of the simplest ways to save money shopping is to buy in bulk, and this is particularly true at markets. The more of the same item you purchase, the lower the cost will be per unit. Ten t-shirts are cheaper than five, which is cheaper than two and in turn lower than the price of one. This is a common practice I use to lower the cost, and do my Christmas shopping all in one fell swoop. But don’t feel like you need to buy in bulk to get a better deal.

Another similar tactic is to purchase items in bundles. If you have a vendor who sells many different types of products you can get discounts by bundling them together as opposed to individual purchases at multiple specialty vendors. For example, if you want t-shirts and magnets then go to a vendor who has both, and you’re likely to get a package deal. Remember to use the lowball strategy during bulk or bundle deals.

# 9 – Point Out Errors, Flaws & Misprints

One way to get a vendor to meet your lowball price is to point out problems with their products. Obviously you can’t do this for a high end item unless it is damaged in a place that does not bother you, but can use to your advantage during the negotiation. Many markets sell mass produced products a good portion of which are counterfeits. They are often made with cheap materials and have printing errors. Use this to your advantage! You may even convince them you’re doing them a favor by purchasing irregular, damaged and flawed products.

That is unless you don’t realize your purchasing a defective or mislabeled product. I had to learn the hard way with a well executed version of a bait and switch scheme! From now on I insist on taking clothes out of sealed plastic to check the tags and try on the shirt. Make sure you don’t get scammed like I did in Vietnam!

# 10 – The Unsatisfied Walk Away

At this point if the vendor still has exceeded your price ceiling, then walk away like you’re never coming back. A few scenarios may occur. The first is the vendor lets you walk. Don’t be upset. You tried your best, but your price ceiling is lower than they are willing to go. Move on to the next vendor! Second, my favorite part of this tactic is turning to his competition and making my last offer to them. They probably just watched the entire process. They may be willing to settle for your offer. If they do, it really burns the vendor who didn’t make the sale. Third and most common is that as you walk away, they yell out one final offer. It could reopen the negotiation or finalize the sale. If not, carry on and keep shopping.

Exceptions to the Rule

Color – Many times people have their heart set on a particular color. In many cases vendors can swap merchandise with other vendors if they do not have exactly what you are looking for. When this is not possible, you may need to pay slightly more for an item you desire. On the contrary you may be able to get a discount if their stock does not meet your requirements.

Size – Some people fit into clothes of varying sizes. You may be able to use that as a negotiation point. Let’s say you wear an extra large t-shirt. You may be able to get a discount on a large. Vendors are more likely to do this if you are willing to take the smaller size, because at wholesale, it costs more money for clothes that use more material. This will not work when they can swap merchandise with the vendor next to them.

Food – Never negotiate for prepared food at street stands and market restaurants. Depending on the country you may be able to negotiate for proteins and produce or individually packaged food if you plan on cooking your own meals or wandering the streets eating fresh fruit.

Articles With Information About Foreign Markets

Below are a number of articles that have various information about foreign markets, street stands and outdoor vendors I have had the pleasure of exploring. Some are about dining experiences and others about shopping.

Dalat, Vietnam – Part 3: Food & Nighttime Markets

HCMC, Vietnam – Arrival: Airport, Hotel, & Eating at the Ben Thanh Market

Land & Sea Tours in Cabo San Lucas, Mexico

Magic & Mystery in Todos Santos, Mexico

The Top 15 Scams, Schemes & Solicitations in Vietnam

Vietnam – Disabled War Victims Crafts Cooperative

Conclusions

The intention of this article was to explain how I strategize to get the best discounts and the lowest prices when shopping at street markets and flea markets. The truth is that negotiating is a skill, and it is not for everyone. Some people do not enjoy the process at all, and I would recommend they shop with someone who loves to haggle. It has taken me quite some time to hone these skills to the point where negotiating at the markets has become obviously one of my favorite things to do when I am exploring new destinations. I hope that this article has immersed you in the art of negotiation. May your deals be plentiful. Happy Trekking, but in this case, more importantly, Happy Negotiating!

One Last Travel Tip: If you purchase something heavy or more souvenirs and gifts than you would like to carry with you during the remainder of your trip then consider heading over the the post office and shipping everything home. I have done this a number of times during the halfway point of month (or longer) trips to lighten my carrying load.

The cheapest option is to send packages by ground and sea transport. It may take a couple months for your shipment to arrive, but it will magically show up on your doorstep just about the time when you forget about it.

It’s like an early Christmas and in my case since I travel primarily during the summer the package comes loaded with presents for friends and family just in time for the actual holiday. If you are looking to get your contents as fast as possible it will be significantly more to pay for air freight.