I grew up in countries where most objects and services have fixed price tags associated with them. The decisions on whether to purchase was simplified with price certainty: ’Is this thing worth $X to me?’. I remember being profoundly uncomfortable with my first car purchase, salary negotiation and house buy. I had no experience in negotiating price and was ill equipped to do so with anyone who knew how this process can work.
Much of the world is the exact opposite of my early life: nearly everything is negotiable, and people expect to spend some time figuring out what price works for both parties. Having spent a fair amount of time in this alternate world, these are my thoughts:
Hold two separate concepts in your head. ’What might a local pay for this?’, and ’what is this worth to me?’. There is no such thing as a right price. Climbing on a minibus in Kathmandu I was asked for and handed over the dirtiest, most wrinkled and torn note of least value of currency for the ride. Recognizing that everyone else in the van would be lucky to make $10 that day, I would gladly have paid ten times the fare. If someone remarks that they get charged more than residents, I ask them to consider how lucky they are to have been born in a nation, at a certain time in history, and in a social and economic cohort that allows them the luxury to travel. That universally goes poorly.
Always be gracious. I have seen people red in the face, and obviously outraged, that someone is trying to ’rip them off’. Remember, it is not a blood sport; it is a negotiation.
Absolutely be prepared to thank the person and literally walk away. Based on my upbringing, this was the hardest thing to internalize. I was so obsessed that I would offend someone that I used to stay, settle, and be angry with the outcome (aka myself). Walking away changes the dynamic of the haggle, and if the other party comes after you the price will always be lower, not higher.
Know what your upper limit is before getting into a conversation. If you do not, then you have to figure it out while you are talking. Often, before meeting with a local about a boat trip or a leather bag or an adventure, I run through what I would expect from this experience and attach a price tag to it. You would not want to start bidding in an auction without setting your limit (though many people, astonishingly, do just this). If the cost of the service or object remains above your threshold, then there is always a next thing to do or buy.
Always negotiate on your own. When traveling with companions there is a annoying tendency for the group to cluster closely by anyone who is leading. Think of the families packed around the checkin counter at the airport, contributing only clutter and opinion. Give your group a task or a place to stand apart. This way there is zero opportunity for the vendor to play you off against each other, and no chance that the fellow traveler may second guess the outcome. This is especially true if your fellow traveler is a female who has expressed an interest in an object.
Do not be constrained by price anchoring. Overheard way too many times: ’that costs $60’;’how about $50?’. The emptor has been anchored by the vendor. How about $10 instead?. I remember a time, way before I stopped buying stuff, in Marrakech. A shoddy knife that caught my eye as exotic. Negotiation started at $1,000; first counter offer was $50. Both parties ended up satisfied.
Negotiate with vendors individually and sequentially. Walking off the ferry, there will be a cluster of taxi drivers vying for your business. Lots of hand waving and plenty of voices. Pick one and point at them, and speak only with them. If none of the above conditions are met, then pick the next one and repeat the process.
It is not personal. Early on, I would occasionally get sulky on a trip or ride, because I felt hard done by. I forgot to remember that I agreed to the transaction. Own it, and enjoy the thing that you chose to do.
Recognize when you do not have any cards to play. Very occasionally (Aswan airport late at night), you will have no options and no room to maneuver. There may be only one choice. You know it, and the other party does too. Give a good show at haggling, just for the sake of etiquette, but do not be angry when you just have to pay whatever the rate is. Chalk it up to ‘shit happens’ and be thankful that you did not have to part with a kidney.
And, by gosh, learn from and enjoy the game.