Few things strike the first time traveler to Asia as more anxiety provoking than bargaining. If I offer a price that is too low will I insult the seller? If I pay too much will the seller think I’m a dumb tourist? Everything seems so cheap anyway, shouldn’t I just pay what is asked?

First of all, it helps to have a context for bargaining. In cultures where bargaining is done, it is a part of the social discourse. It is expected that you’ll bid back and forth and come to a mutually agreeable price. Think of bargaining as similar to other scripted social interactions. “How are you?” “ I’m fine, and you?”

Start low so you have room to trade bids when the vendor comes back with a higher bid. Don’t start with the price you want to pay.

Remember that when it gets down to the final bids, you are likely talking about a few cents. Don’t bargain as if your life depended on getting the lowest possible price. Bargain with a smile. Be pleasant even when you are saying, “that’s too much.” Remember that you both want the same thing, the seller wants to sell you something at a price you’ll both be pleased with, you want to buy something at a price you’ll both be pleased with.

What Should I Start With?

So how much less than the starting price should my first offer be? There is no hard and fast rule. Sometimes you should offer as low as 10% of the asking price; sometimes you’ll be lucky to get 10% off the asking price. It helps to have some idea of what the item is worth. If you’ve wandered around a bit, you’ll have an idea of what other sellers are asking for the item. If you’ve been to a store with fixed prices and have seen an item, you’ll have a better idea of what it is worth.

If you are really nervous about bargaining, you can always simply ask if you can get a discount or if the seller will give you a “special price.” The seller will almost always offer you a lower price, which you can then either accept or can make a slightly lower bid. You won’t get a rock-bottom price doing this, but it can be a way to start learning how to bargain.

You can ask the price of anything with no obligation to buy, but once you start bargaining, you are obligated to buy the item if you and the seller come to a mutually agreeable price.

The first sale of the day is considered good luck, so sometimes sellers are willing to come down farther in price for that sale. After you pay, the seller may touch all of the items in the stall with the money you paid. I always enjoy this little ritual and laugh with the seller about the sale being good luck.

Always Know You Can Say No

When you are bargaining for an expensive item and you can’t come to an agreement, it is ok to say no thank you and walk away. Sometimes that will inspire the seller to come after you and offer a lower price, sometimes not. But you can always return later and resume your bargaining.

There is no need for a common spoken language to bargain. I’ve often bargained for items with a calculator passed between us. Perhaps the most important currency in bargaining is goodwill and a smile.

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