Negotiating Tactics for Travelers

I’m like most Americans: I pay sticker price. In our daily routines, we are so used to paying the asking price that our negotiating skills are weak, if we have them at all. Traveling to non-Westernized nations is a terrific way to hone that skill.

What I’ve found in negotiating is that there is no greater leverage a buyer can have than simply not wanting something. Therein lies the rub. If you do NOT want something, why would you negotiate for it in the first place? If you do want something, you will show it in your voice, behavior, eyes, tone, etc. It is impossible for even a fine actor to hide so many very subtle subconscious clues like pupil dilation. Part of your negotiating power inevitably dies as you unwittingly give away these clues.

Today I had a little experience that prompted me to write this blog. I’m in Thailand and, always interested in prices as a general curiosity, asked a woman how much a pair of sunglasses cost. Mind you, I was wearing sunglasses at the time. The conversation went something like this:

Me: How much are they? (asked generally about the dozens of different styles she had displayed)

Her: Which ones?

Me: Ummm, these ones I guess. (pointing to some Elvis Presley style shades)

Her: 250 Baht ($7.50).

Me: Wow, ok. (said softly to not be overly obnoxious)

Her (noticing me looking around, realizing I wouldn’t pay that price): I can give you special deal. 200 Baht ($6).

Me: I’m not really interested in buying anything, just wondering.

Her: Okay I sell for 180 baht.

Me (laughing a little): No, really, I already have a pair, but might buy a new set if mine break or get lost…just wondering what they cost.

Her: Ok, 150 Baht ($4.50), how much you want them for?

Me (pulling my sunglasses up, onto my forehead, so she can see my eyes): I don’t really need any unless these break. I was just wondering what they cost.

At that point, I thanked her and walked away. For all I know she would have taken 100 Baht if I asked, though I suspect her final stated price was near her limit. This is how many of my pricing questions go, because most of the items about which I enquire, I simply do not want. I have zero desire to add a second pair of sunglasses to my backpack.

Here are some techniques to try next time you travel overseas and are negotiating for souvenirs:

-Never pay sticker/asking price. For Westerners, this takes some practice, since we naturally assume the seller is giving us a fair price, when actually it might be a 100% or more markup.

-Use local currency. In many places the US Dollar still reigns supreme, but you’re almost always better off withdrawing local currency form a nearby ATM for your purchases. Plus, it helps demonstrate that you’re not a freshly arrived, dumb tourist.

-Realize that you don’t need to buy anything. Without a doubt in my mind, the strongest negotiating tool we can ever have is not wanting. If you really, really want that hand-crafted figurine or a special pair of shorts, do your best acting job. Like I said before, it’s impossible to hide all our subtle clues, but you can hide some, making yourself appear ambiguous. You can take your acting to a whole other level by convincing yourself that you don’t want what you really do. Hey, it works for lie detector tests, spies, criminals, and politicians.

-Let the seller lower the price. Just like my sunglassess negotiation, if you really don’t want something, you wouldn’t be haggling over price. Let the seller SELL, while you remain an uninterested buyer.

-Do a test negotiation. No deal is final until money changes hands. Every one of these seasoned street vendors knows that very well. It’s okay to test out the market price from one vendor and then go to another vendor armed with that knowledge. Other ways to gauge the market price are to listen to other customers trying to buy similar products, or have a friend go in first.

-If or when you do start serious haggling, put in a low-ball bid, maybe half of what the original asking price was. Often the sellers will laugh or even act offended, but will then throw out another price somewhere in the middle. They want to move merchandise. If you present what you consider a low-ball bid and the seller immediately accepts, you can feel fairly certain that you were nowhere near the seller’s lowest acceptable price.

-Know that no vendor will sell you anything at a loss. They are not stupid. They all have bottom prices that include a certain acceptable profit margin. Your goal as a buyer is to get as near that price as possible.

-Be willing to walk away. You won’t hurt any body’s feelings if you turn around and walk. Try it sometime just to prove to yourself that you can. It’s not uncommon for a seller to cut a price in half as soon as he knows you’re walking away for good. It’s his desperate final attempt at making a sale that is as good as lost when you leave.

-Remind yourself regularly that all things are negotiable: taxis, hotels, food, souvenirs.

Many books have been written by lawyers, politicians, and sports agents on how to negotiate settlements, compromise with opponents, and create “win/win” scenarios. In all those cases, they are representing other people and money not their own. Hopefully my tips prove more practical on a personal level.

What techniques do you have for negotiating? Have you an interesting bargaining story?