Shopping for goods and services in Asia can be cheap and convenient. However, there is also the dilemma of being charged more or encountering “tourist prices”. You might have read about it or heard it from your fellow travelers while exchanging stories. These “tourist prices” or “dual pricing” system works by asking foreign travelers to pay more than double the price that locals are paying, for a variety of reason. Although the most well-known country to practice it is Thailand, other Asian countries have also followed suit, including most southeast Asian countries, in India and in China.
Avoiding dual pricing can be tricky but that doesn’t mean that you it’s impossible to avoid it. First of all, not all establishments in these countries apply dual pricing, so it’s a great idea to know which ones have equal pricing for everyone. Secondly, most of those that practice this system are the commercial or touristic places where everyone would flock into. National parks, museums, and some hotels and restaurants have separate rates for foreign nationals. Of course, if you are an expat with a working visa, you could get around and pay the local price. However, if you are a guest of the country, chances are, you will be charged higher. If paying tourist price is something that leaves a bitter taste in your mouth, you could avoid going to these places and immerse yourself in other cultural and historical activities. Or, if these places are on top of your list, it would be best to keep the harmony, pay the fee, enjoy the place and let it go afterwards. In terms of shopping in street markets, prices can also be higher for Westerners. The great thing is that these places also widely accept the practice of haggling and bargaining. In fact, it is a very rewarding experience and one that you should master while traveling around Asia.
When and Where to Haggle
Haggling is not only widely accepted, it is actually an expected practice. The best places to haggle are in those where there is a lot of flexibility for the seller or the shop attendant. Market places, such as street markets, for buying shirts, clothing and souvenirs could be a great start. When getting transportation, make sure to discuss the pricing in advance, so you wouldn’t be stuck in an argument with the driver later on.
It would be best to avoid haggling in commercial establishments such as restaurants, supermarkets and shopping centers where the prices have already been established and payments are entered through the register. Ticketing offices for transportation and attractions are also closed off for haggling. In terms of transportation, local buses and taxis that utilize the meter system should not be bargained, since these are following standard rates.
Haggling can be done any time of the day. The most preferable and the highest chance to strike a great, cheap deal, though is during the earliest part of the sale. For example, if you go to a night market in the middle of a busy night, the vendor might not give you a really low price within an earshot of other buyers. But if you go there early, while they are still setting up and there is still no crowd, they can be more open for bargaining. An early sale in most of Asian countries is considered lucky and if you are their first buyer, they can surely bend the price for you.
How to Haggle
A little bit of research will go a long way. Prior to your street market shopping, know which areas of the city have better prices. The more touristic markets will have higher prices compared to those sold on side streets. Ask locals like your hotel concierge or host about the general prices of items to give you a sense of how much you should be paying. Take the time to walk around to see the prices prior to buying. The most expensive ones are actually those that are stationed in the entrance, and the prices can go significantly lower as you go towards the end. As a rule of thumb, don’t purchase the first thing that you see.
Build rapport with the vendors by speaking a bit of their language. It will give an impression that you have been in that place for quite a while, even if you have just arrived. It will also give a sense that you are showing respect and effort to understand the local culture. Smile and be friendly when negotiating for prices. Haggling is a fun experience that should be approached like a game. Tease the vendors and be playful instead of losing your cool and being angry for giving you a high price for an item. Being nice and polite are always more appreciated and rewarded.
Another great tip is to start at an insanely lower price. A lot of vendors are aware that buyers will offer them half of the price and thus, their prices have already been adjusted so they can earn more. So instead of asking for the half, go a bit lower so you can have more room for bargaining. Compromising is part of the deal but you wouldn’t want the seller to feel cheated at the same time. Go through the bargaining process up until you arrive to a price point that both of you are comfortable with. After the sale, be grateful for the deal.
Buying in bulk or as a repeat customer will also give you more bargaining power. If the seller does not budge with the price of one item, ask them if they can lower it if you purchase three. There is a great chance that they will lower the price with the prospect of more sales. Being familiar to the vendor from whom you bought the item the night before will also give you a better chance to get lower prices. It can work even better if you bring friends with you.
Lastly, be ready to walk away or pretend to do so, if the negotiations are not tipped in your favor. Shopping around can give you an idea of how much the prices really are and give you more confidence to haggle. With this in mind, you can cite some prices and simply thank the vendor if they don’t budge and walk away. If the vendor chases you, you can continue with the haggling. But if not, don’t try to go back to that same vendor again as this can potentially lower your chances of getting a lower price.
Haggling is a great way to practice your negotiating skills. Of course, in some countries like Japan, it is a more passive activity and you have to be more observant if the store practices it or not. In general, there is nothing offensive or bad about asking to lower down the price, as long as you know when, where and how to properly do it.
