How to Haggle When Traveling

I’m not exactly a master of negotiation.

To be honest, I’m not a fan of haggling, but I also dislike getting ripped off.

Additionally, I often visit countries where haggling for a better price is the norm, and if you don’t, then you will be paying up to 10x what you should be.

On the flip side, I don’t want to haggle so much that the vendor can’t make a decent living.

I once knew this guy who told me a story about how he got chased by a man with a hammer in Vietnam. His wife later told me it was because he haggled too hard!

Don’t be that guy. Do your best to get a better deal, but don’t undercut the vendor so much that he, or she, chooses violence!

Another good point reminds me of the lyrics from the song “Mr. Wendel.”

“$2 means a snack to us but it means a great deal to you.”

When I’m traveling in Southeast Asia, I expect things to be cheaper than when in Australia, and in some cases, such as dining out, a lot cheaper. When I buy something on the street with local currency, for some reason, the equivalent of 50 cents feels like a lot more than 50 cents.

It’s always good to stop and rationalize how much you are actually bargaining for.

In some countries, 50 cents can buy enough rice to feed a small family for the day. Do you really want to deprive a baby of their rice so you can feel like you won?

Okay, enough ranting. Here is my haggling strategy. It is based on aiming to achieve a win-win outcome where all parties, both the vendor and I, are happy with the transaction.

First, I don’t buy things on impulse. If I'm walking in a street market and see something interesting, perhaps a small souvenir gift for a friend, I’ll look at it and then walk away. I do not ask the price.

While I’m taking that little stroll I’ll think about how much I would be willing to pay for that item, and then I make that my top limit that I will definitely not go over. I also set a secondary price about 20% lower than my top price.

With my top and secondary prices in mind, I go back and ask the vendor the price. If the price is lower than my highest price, I buy the item. I do not bother haggling more.

If the vendor tells me a price that is higher than my top price, I counter-offer with my secondary price. If the vendor's next counter-offer is then lower or equal to my top price, I buy the item.

If the vendor’s next counter-offer is still higher than my top price, I counter again with my top price and state clearly that it is my final offer and I definitely will not go any higher.

If the vendor doesn’t accept this highest offer, I walk away.

Often, as you walk away, the price will start dropping. Stick to your guns and only accept if the price drops to your highest offer.