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Bargaining

Bargaining in China is a game.  If you know the rules and play the game with good humour you will find that you can often reduce prices significantly.

Where Bargaining is Acceptable

You can bargain for a better price at most types of businesses in China.  You can bargain at the night markets, small clothing stores, street vendors, tour agencies, realtors and some indoor markets.  You cannot bargain at stores that use barcodes to mark their items or when buying train tickets from the train stations.

If you are not sure if you can bargain at a specific place then look to the Chinese customers as an example.  Do not listen to what the business has to say because they may say prices are fixed when in fact they are only fixed for people that don’t know any better. 

How to Bargain

When bargaining take the attitude of "there’s nothing to lose."

Foreigners are often quoted prices that may be as much as 20 times as high as the equivalent price would be for a Chinese person.  However, just because they quote that price does not mean they will not settle for less.  After hearing their offer you should reply with an offer that is much lower.  As long as you have a smile on your face don’t be afraid to make an offer that you think is even lower than the value of the item.  If your first offer is too high you might lose out, but if it is too low you don’t have much to lose.

It is a habit for travellers to mentally translate prices into their own home currency.  Try not to do this.

If you are in a tourist area DO NOT IMPULSE BUY.  Even if the vendor drops the price from 90 yuan to 20 yuan you may still not be getting the best price.  Chances are that there are many people selling the same item within the area so check out your options first.  Again, you can’t lose by checking out your other options.

In busy markets the initial price you will be quoted for an item will get lower as you walk farther into the market.  Why? Because the shop owners in the middle of the market know you have likely already seen the item at several other stores so they will give you a more competitive price right from the start.  They also know that they can’t tell you that that teapot on display is an original that they personally crafted because they know you would have already seen multiple replicas in the other shops on the way.

You should check for flaws in each item at each shop you visit.  Do not take product quality for granted.  If it has large flaws don’t buy it but if it has any small and acceptable flaws you can use that to push the price down a bit.

If you want to push the price down just a little bit more then learn to look disappointed and walk away.  This is a common tactic.  The seller will often only shout out their cheapest price as you walk away from them.  If they don’t shout a cheaper price to you and you still want to buy from them then just come back later.  They will still be there.  You’ve got nothing to Lose.

Simplified Bargaining Steps

- Ask for the price and make sure they provide the first offer.
- Offer a much lower price than the price they quote you.
- Check the item for flaws.
- Smile and talk the price down.
- Put on a slightly disappointed face and walk away.
- If time permits, repeat this process with similar vendors.
- Choose the best one and pay your money.
- Make sure the change given is authentic and get going.