There are two schools of thought on haggling on your travels: pay whatever price you’re asked and don’t think twice about it, or you bargain enthusiastically. If you are a backpacker and travel to a third world country, I advise you to either bargain or keep in mind that you could bargain for just about anything on your journey. It is pretty much an essential part of your trip to almost any destination, but especially in the third world.
Be aware that anywhere you go in pretty much any developing country, there are always 2 sets of prices: tourist and local. Your goal is, by means of haggling, to bring whatever price you pay, to be as close to what a local would pay as possible. It is likely to never be the same with a few exceptions, of course, but you should always try.
Don’t worry too much about it though, and certainly don’t let it ruin your trip. In some countries, such as Cuba, for instance, the tourists even have their own currency, different from the local one. Needless to say, the prices in tourist currency are many times higher than local ones. So a lot of times, there is little you can do. That also applies to the entrance fee discrimination of foreigners at all too many sights around the world. But in some countries, especially in the Middle East, you can bargain for almost all the expenses on your trip. Haggling can be fun if you do it right, and the benefits, especially on a long trip, can be staggering. To some, such as Israeli or Chinese travelers, haggling is natural. To others, it’s a scary proposition. Fret not. It’s a part of daily life for most locals anywhere you go, and you participating in can actually enrich the cultural experience of your trip. You’d be surprised how many times a discount can be offered to you even in European or other so-called developed countries if you only ask.
For small things, haggling is really quick and easy. Anything you buy in any kind of a market other than maybe some food that is already dirt-cheap should be bargained for. As a rule of thumb, I go with at least 30% less than asking price, although some recommend to offer half to start with. Obviously, you need to know how badly you really need this or that item. Problem is, if you really like something, chances are, the seller has already picked up on that no matter how good an actor you reckon yourself to be. Don’t be afraid to walk away; if a seller does not rush after you, the price is probably fair.
If you are interested in buying something expensive, such as a piece of jewelry, a fancy carpet or a multi-day trip, haggling can and should be taken especially seriously. Take your time with it. In some countries, such as Morocco, bargaining is a real ritual. A seller often will offer you tea and snacks, and act all insulted when you offer a reduced price to him. No need to be concerned – it’s all part of the game. Even if you get your 20-25% off his asking, chances are, he is still ripping you off, so be ruthless just as he is prepared to be. And never answer the question, “what’s your budget” or “how much are you willing to spend”, because then you are risking being offered something substandard to “fit” your declared expenditure limit. Remember – if you reached an impasse, it is perfectly okay to walk away. Don’t let the free tea sway you into buying something you might not use or like as much once you get home.
And of course, always haggle for taxis (if they refuse or don’t have a meter) or any kind of transportation as there is usually a plethora of choices. As a rule of thumb, any man you meet who is involved in transportation is the one who you will likely take you to the cleaners the most. Similar logic applies to hotels, tours, guides or any service you may procure. Haggle, haggle, haggle.
On the other hand, there are things that you shouldn’t haggle for. Anything with the fixed price, for example – supermarket items, dishes in a restaurant menu (unless it’s seafood with a “market” price), public transportation, visa fees are just few examples of such expenses. Suck it up and pay.
If you are truly uncomfortable with bargaining, it’s okay. You’ll either learn or perhaps decide that it’s not worth your trouble. That’s perfectly fine, too – it’s your money, after all. All I can really do is assure you it is not that scary at all.