Tips on Improving One’s Bargaining Skills

Some useful negotiating tips when traveling include:

• Small calculator. This can be used to calculate exchange rate equivalents or, if language is an issue, to negotiate
prices.

• Be respectful and polite. A negotiation is not a confrontation.

• “Too much." Devise a comical way of showing that you believe a price is too high. I use binoculars or make-
believe ones with my hands. Nod your head, clench your teeth, faint, choke on your tea—do anything to show
disapproval or shock. Say “too much” often.

• Good Cop, Bad Cop. If you have someone with you, have them play the “Bad Cop” to help you negotiate with the
seller.

• No obligation. You’re under no obligation to buy anything, no matter how much time and energy you or the seller
has invested and how friendly the hospitality has been (e.g., the offering of tea, snacks or small gifts).

• Salami tactic. If a price is too high, see if you can get something else thrown in. Some sellers might try to get you
to buy more things once you have decided to buy something.

• Intimidation. Some sellers might try to intimidate you into buying something or spending more than you should. If
you are pressured beyond your comfort level or feel threatened, get up and leave.

• Read the seller. Pay attention to a seller’s body language, what they say and do, as this can signal how flexible
they’re likely to be when it is time to close or break off negotiations, whether they’re just telling you what you want
to hear, etc.

• Splitting the difference. This isn’t a good idea, as the halfway point might still be too high or be worse than what
you could get otherwise.

• Be funny, save money. Try to soften up the seller.

• Be comfortable with silence. In many non-Western cultures, silence is a form of communication. If someone is
quiet, they might be thinking or enjoying the moment. Don’t feel the need to fill the silence. You can also use
silence to pressure the seller to make the next move.

• Walk away. This tactic can sometimes help bring a seller’s price down. Be polite when you leave. If the seller
comes after you, they’re willing to come down in price. If not, you can always return. In Lhasa, I walked away three
times before I agreed to buy an incense holder from a Tibetan woman who chased after me with a lower price each
time.

• Low ball your initial offer, even making it humorously low.

• Reduce your initial offer. One traveler I met would make a reasonable offer. When the seller stuck with his initial
price or came back with a counter offer that was too high, he would start to reduce his initial offer price; i.e., offer
less than he had the first time.

• Show ’em the money. I sometimes break off a negotiation, and then return with what I’m prepared to pay in cash,
which I then show the seller. “This is all I can afford” or “This is all I will pay” might work wonders.

• Remember: The seller’s asking price can be up in the stratosphere. The buyer’s objective is to bring it down to
earth. In Xian, China, I once paid one percent (1/100th) of the initial asking price for a bilingual edition of Chairman
Mao’s Little Red Book!

• “How much you pay?” Let the seller be the first to name a price. You might think something is worth more than it
actually is or what the seller thinks it is worth. Prices and the cost of living vary greatly around the world—47% of
the world’s population lives on less than two dollars per day. In many places, one dollar has a lot of purchasing
power. Adapt!

• Know what money to use. Sometimes the kind of currency you use can save you money. People might favor
dollars or euros over their national currency. Know the exchange rate, as a seller might intentionally use a
different one so you still pay more.

• “What you country?” In some countries, a merchant or the provider of tourist services might base his initial asking
price on where (you say) you’re from. In some Asian countries, one could save a little money by claiming to be
from Australia or New Zealand, as a lot of young budget-minded travelers from there go through these regions to
and from Europe. Also, if someone doesn’t like you or your country, they might charge you more than someone
else!

Travel Tips

Best Travel Advice

Bargaining Tips

Picking the Perfect Cruise

Cruise Ships

Airlines

Norwalk Virus

Carrying Prohibited Items

Knowing Security Measures

Airport Security

Hotel Liability

Driving Record Screens

Natural Disaster

Hostels: What They Are and Where to Find Them

How to Plan an Adventure Vacation

How to Increase Your Money while Traveling

Scams on the Road

Self-Defense for Travelers

What to take