Bargaining is an ancient tradition of negotiating a price through discussion. In many local markets around the world, sellers will negotiate the price of a product in order to profit from the sale. If you want an item for sale, you need to know what to do when haggling like an expert.
Step
Part 1 of 2: Do Your Preparations
Step 1. Know the right situations to bid
Not all situations require bargaining. A bazaar in Morocco might be a good place to haggle, but Harrod's in London might not be. What is acceptable in one place may be poor shopping etiquette in another.
If you want to know if you are allowed to bid, say something as simple as “The price is just a little too high for me”. If the seller responds with a counteroffer, he or she is opening the door to bargaining, in this case, keep on bidding. If he immediately responded with a refusal, perhaps this location wasn't the right place to bid
Step 2. Find information about prices for local residents
In most places where bargaining occurs, there is a double standard on the price tag: the prices paid by locals are lower than those paid by tourists.
Even if you find that an alpaca scarf costs 60 Peruvian nuevo sols for locals and 100 nuevo sols for tourists, don't expect to be able to bargain the price of the scarf to 60 nuevo sols. Some sellers will not sell at local prices to tourists for reasons of principle, although you may be able to get very close to if you have the expertise
Step 3. Determine the value the product is worth to you
This is a shopping rule that uses trusted sources of information, which is applied to buying goods in general. However, it is particularly applicable to bargaining. Many bidders think that if they can reduce the price by half, they've got a good deal. However, many sellers triple their prices on the first bid in anticipation of this, meaning you're technically getting a bad deal if you buy. If you know the value your product deserves, there's no problem with how the seller values the item – as long as you're happy with the price paid.
Step 4. Prepare cash
In some places where bargaining is common, cash is king. The seller will not accept credit cards or be unhappy about it. There are several advantages to carrying cash over credit options:
- You will not overspend on a product as it is limited by the amount of cash carried. Plan a budget in advance and it is guaranteed that you will stick to it.
- Holding out a handful of cash and exclaiming, "This is all I have cash" is a great trick and it often works. The seller will be tempted to go ahead and take the money in exchange for the product.
Part 2 of 2: Make a Bargain
Step 1. If to you a product is worth more than the money you pay, there is no problem if you pay more than the locals
Meaning, you get value for your money. If the seller you are bidding on refuses to lower the price of a product that is valuable to you, it should be easy to leave.
Step 2. Don't show excessive passion or enthusiasm for anything you're interested in
One of the biggest mistakes people make is sending signals of liking something. As soon as the seller “knows” that you like something, he has the advantage of dominating the negotiation. On the other hand, if he believes that you are hesitant in deciding the price of the item, you have the advantage that you can leave him at any time, or at least pretend to leave him.
Step 3. Start with 25% to 30% lower than the listed price or on the first bid
A good rule of thumb is to hold any price at the first bid, divide it by 4, and start the haggling process there. Bid half of the first bid and you risk offending the seller. Bid only 10% of the first price and you probably won't get a good deal.
Step 4. Invite a friend or partner to accompany you
This trick works better than you might think, in conveying the message that other things in your life could easily get in the way of buying and selling. Here's what you do:
Invite a friend when you bid. If they pretend to be bored, worried you're spending too much money, or have a promise to keep, the seller can immediately cut prices to catch up and offer you a bid that's close to the lowest or even the lowest
Step 5. Don't be afraid to leave a product, even one you really like
You'll get to the lowest bid, or close to the lowest bid, by being prepared to leave. As soon as you walk away, the salesperson will lose a sale, and everyone in the world hates losing a sale. They definitely give you one of the lowest prices.
Step 6. Be prepared to spend a lot of time bidding
It's not uncommon to spend hours haggling over prices. Sellers are in a position to stall the bidding process because they understand that many people are impatient and willing to pay more for the convenience of getting an item and completing the process. The seller may feign embarrassment, disappointment, and ridicule during the bargaining process using emotions to bring the bargain to an end. Don't be provoked. Stay strong and you should get an offer close to the price you're looking for. The bidding process might look like this:
- Seller: "The price is IDR 500,000, 00 ma'am."
- Buyer: "I'll give you IDR 200,000,00."
- Seller: "What if it's IDR 450,000,00?"
- Buyer: "What if it's IDR 200,000,00?"
- Seller: "Okay. I'm willing to settle it with Rp. 350,000, 00."
- Buyer: "And I can finish it for IDR 250,000,00."
- Seller: "Rp 300,000, 00?"
- Buyer: "Rp250,000,00."
- Seller: "I will receive Rp270,000, 00"
- Buyer: "And I will give you Rp.260,000,00."
- Seller: "Rp2700,000.00 is my last offer."
- Buyer: "And Rp.260,000, 00 also from me."
- Seller: "Rp 265.000, 00?"
- Buyer: "Rp260,000, 00."
- Seller: "Good Rp260,000, 00 ma'am."
Step 7. When the seller makes his final offer, don't be provoked
Usually this is not the last offer. They may try to convince you that is the lowest price they can give you. Tell the seller the value of your last bid, which should be between $100.00 - $1000.00 below, and work from there. If this doesn't happen, then leave. He will call you back and give you a very good deal. After all, for him, even though IDR 500,000 is better than IDR 260,000, IDR 260,000 is better than IDR 0.
Step 8. When the seller comes to a price you like, stop
Don't press it again, or you'll ruin the whole deal. Take the stuff and go. Be happy with your new purchase and the knowledge that you can afford the best price!
Tips
- Don't bid very low prices. Give the first bid price the lowest price you can afford to pay for the item. Work your way up to an agreement with the seller.
- Always cut the initial price slightly lower than half the original price.
- Be polite and reasonable with the seller, or else you may not get the item at all.
