Bargaining Lessons by Randy R. Johnson

Bargaining skills are most important when negotiating for more expensive goods -- most typically handicrafts -- but you can practice many of them on vendors in the local marketplace, where a fiasco is just a good laugh. Some of the most challenging, complex, and instructive bargaining you will do is in the public produce market.

The produce is usually sold by the kilo, and these prices are sometimes displayed. But don't expect to start bargaining after they have already weighed it and told you the standard price. Many of the scales just collect dust, because the buyers offer a price for exactly the pieces they want, after guessing the weight. If you think in pounds, instead of kilos, you are already at a disadvantage. In the beginning, you should have a few items weighed, and maybe pay the kilo price - - this is a long learning experience. At some point you will get a feeling for what a good price is for a medium avocado, a small papaya, or a large pineapple. Then you go to a new country, or just down to the coast, and the prices all change! Don't forget to factor in quality, too!

In more underdeveloped areas, weight may be ignored altogether, and various measurements are used. The single piece is basic, but many goods may be sold by the "pile", the bundle, the handful, the cupful, the hatful and several other strange ones. Then you can also bargain about who's pile, hand, hat, or cup is used. Cloth material and rope is often sold by lengths that you have never heard of before ("12 cubits, by 24 cubits, ...").

As with other bargaining, you should be able to get the price down if you buy more things from the same vendor. Now it starts to get really complicated. You want two tomatoes, two avocados, and a papaya. The vendor offers you a smaller papaya and only one avocado for your price. You accept the papaya but put back another avocado. Then she adds some to your price and throws in two limes, which you never even asked for! Now you are completely at sea, and she has only started warming up. Limes at 20 cents a kilo, tomatoes at 45, (how much would those tomatoes weigh?), avocadoes at... how much was that? Let's see... Then you are interrupted, "Hey, Randy, get two extra avocados will you, and a couple of red onions." Oh, my God, here, just take all my money, and give me some food!

The good news is that a major miscalculation in the marketplace (like a factor of ten) may only cost two dollars, and will be about what you would pay at home. If you go to the vegetable market every morning, even if only for lunch supplies and some fruit, you will not only have great fun, but you will quickly pick up some sharp bargaining skills, and from some of the nicest experts you will ever come across!

Team Bargaining

Go shopping with a friend. The best reason is so they can talk you out of an unwise purchase, or out of a shop that you find difficult to escape. They can also offer a second opinion on the usefulness, value, or beauty of the merchandise you are considering. It is best if only one of you is actually buying in any particular shop, and the other is assigned to be on guard against ploys that draw you away from rational bargaining.

Use your partner as a foil in the negotiations. You can say things to each other which would be more confrontational if said directly to the vendor. Your partner can point out flaws in the merchandise, tell you there is better stuff down the road, that you cannot afford it, and that you already spent too much money. She can say things like "The German guys got some yesterday that were better than this for the same price. Come on, let's go take a look at them." Most vendors selling to tourists will understand enough of this to get the message loud and clear.

You can seem genuinely interested in the merchandise and friendly to the vendor, while your partner points out all the disadvantages, without belittling the merchant directly. A vendor may feel confident in his ability to "reel you in" for a purchase that you really want to make, but not if you have an equally strong force trying to drag you away from the place. Don't imagine that you will fool anyone with this ploy, but the force is still there, and you at least show yourselves to be savvy bargainers.

In summary, buy from people you enjoy doing business with, (you don't have to like or trust them personally). Believe nothing that you hear and only half of what you see, bargain like a sonofabitch, don't give an inch (2.54 cm.) until the last moment, do it all with a smile on your face, and have fun.

Other Bargains

Hotel Rooms -- In general you won't have to, and won't be able to bargain for your hotel room. Although a hotel room loses money every night that it is vacant, hotel owners must uphold their standard prices, and those of the local area. Still, it doesn't hurt to try occasionally in countries where it seems to be acceptable. Now, if you plan to stay a week or more in one place, you should be able to get some kind of discount if you try, if business is slow, and if the price is not already rock bottom. The sure profit of a week's occupancy (paid in advance) is accompanied by a rationale for why they can give you a special rate, while refusing it to others.

Unless you are convinced that it is a great place, you may be reluctant to commit yourself to a week in a room that may turn out be unpleasant. But once you are already installed in a hotel, you have much less bargaining power than if you have your pack on your back and are ready to move in to any place on the block. If you are certain that you want to stay for awhile in a particular place that has been recommended, make a firm offer, lay your money on the counter, and be prepared to walk out -- or back down -- if they don't agree. Remember that you will be living with the hotel staff; it doesn't make sense to be other than friendly (if firm) when bargaining for a room.

If you really want to hang out somewhere for awhile, you may be able to barter some kind of work for a discount on your room. I got a free bed at a hostel in the Galapagos for a couple of weeks by doing a few chores, meeting the daily airport bus, and checking in the fresh travelers. I think I saved all of $1.50 per night, but it was a nice change from feeling like a stranger in town.

Guides and Excursions -- There are some things you should not bargain too hard for, specifically for services which will be rendered after the bargain is struck. Like insurance, the value is in what you get later, not how much you pay now. If you insult and haggle a vendor into the ground for a good price on a trinket, you've made a good deal. If you browbeat the hotel manager into giving you a free breakfast, don't be surprised if it is hardly worth eating. And if you do this with your guide for a six-day trek, you may seriously regret it. This doesn't mean you should not bargain at all, but that you should use a friendly approach.

Along your travels, you may be presented with opportunities for some special guided tours for which you may have to negotiate the price and itenerary. Examples range from a few hours exploring caves, visiting a waterfall or isolated tribe, to several days or a week of trekking in the jungle or mountains, exploring islands by boat, going on a camel or jeep safari, or just exploring the countryside in a hired truck or taxi. Many of these guided excursions can be shared among four to eight people to reduce the cost, and in some cases you will have to bargain as a group.

The more involved the service, the more you should be careful that the guide is happy with the deal. A half-hour temple tour is not as critical, or expensive, as a week-long excursion. If a guide or company asks too high a price for a tour, I may negotiate for a cheaper tour, or just say "Thank you, but that's too expensive for me." If he wants to lower his offer, he can, but I won't argue the price too vehemently, and I won't insult him.

You could say "We want to see these 10 islands in 5 days, and get three meals a day and diving gear, for this price or no deal." The captain may finally agree rather than risk missing the business, but once you get out to sea, guess who is in charge? The food may be inadequate, you miss three islands due to "engine trouble" or "bad winds", and you may have an unpleasantly antagonistic relationship with the captain at sea. You lose -- and you have a rotten time at it, too! I have seen this happen many times. Better to strike a friendly bargain with someone who charges a little more. You can still have some of the same problems, but the last thing you need on any excursion is a guide who is out to get you.

Again, the best way to avoid this situation, especially for longer excursions, is to check out several guides or companies to see what they offer. Definitely try to get this information directly from other travelers and ask for specific recommendations. Finding an excellent guide or "excursion company" can be much more important that getting the lowest price. Some of these trips will be adventures of a lifetime, and they are often quite good value. At least you should try to learn what is a reasonable deal for you, and for the guides. If you force a price that is less than reasonable for the guide, then the trip will likely be less than enjoyable for you. Make sure the itenerary and all the details of food, lodging, equipment and any extra costs are clearly spelled out in the deal.

Like many shops, tour operators may lower their price rather than let you walk out the door to their competition. You may be able to bargain a lower price on fixed tours, especially if you are just "filling out" a tour which a number of others have already paid for. In this case you are told not to tell anyone else how much you paid; if you did discuss it, you would probably find a few who paid even less than you did, so just be happy with the price you got.

Taxis and Such -- Bargaining for taxis, bicycle rickshaws, horse carts, and such is a good reason to walk or take the local bus around town. Although taxis can be quite cheap in some countries, there are very few places where you can pay the price on the meter. The price, or your destination may change in mid-journey, and the negotiating starts all over again. You often lose, get into a shouting match, or both. Whenever possible, I walk. See also Taxis, under my Transportation Travel Tips.

I once negotiated a deal for a ride on a public minibus, but only because there were six of us. At a rural town in the Philippines, two "jeepneys" arrived at the same time, heading my way, and there were five other travelers also waiting for a ride. One truck was fuller, and would therefore leave sooner, so when the hustler from the other jeepney approached me, I offered him a deal to take all six of us for a reduced price. I had hardly spoken with the other travelers, but everyone went along with the deal, and of course we had to promise not to tell anyone else.

Good luck, and Happy Trails!