Generally, western foreigners (Canadians, Americans, Europeans, etc) don’t really have to haggle much in day-to-day life. But that’s not a good excuse to not know how to negotiate in a manner that is both respectful and also effective.

Here’s how to haggle properly:

Show interest. First, something will catch your eye in a shop and you will stop to look at it. The shopkeeper will notice and move in for the kill. Generally, it is not considered nice to show a lot of interest in something and start haggling on the price if you aren’t prepared to buy in the end. So, if you don’t intend to buy it, say, “just looking”, smile, and walk away. (Of course, as a potential customer, it is your right to ask for the price, so you can ask but then don’t start haggling even if the salesperson pushes you.) If you have decided that you would potentially purchase this object, start by asking, “How much?” The shopkeeper will probably give you a price only slightly lower than the listed sticker price (if there is a sticker) or just repeat the sticker price verbally. If they explicitly say, “fixed price”, then don’t try to push it any further. If you’re prepared to pay, then buy it. If you aren’t prepared to pay it, say “thank you”, smile, and walk away. If they lied about the price being fixed, they will stop you by saying something like, “Ok, how much do you want to pay?” or they might give you a slightly lower price. This is a very important step. This is where you respond to the offer. Do not show anger, surprise, or disgust at the price. Think about what is the most you’re prepared to pay for the item. Be realistic. If you give a counter-offer that is too low, the salesperson will feel that you either don’t know the usual going rate or that you’re trying to insult him. Either way, giving a counter-offer that is too low will count against you. However, you have to give a price lower than what you’re willing to pay. Usually, if the sticker price is $100, and you’re willing to pay a maximum of $70 for the item, give a counter-offer of $50. Half of the sticker price is a good place to start. Don’t be long winded about it and keep your emotions to yourself. The salesperson will immediately reject your offer. This is normal. They will either repeat their original price or give you one that’s only slightly lower. If they repeat their original price, do not start to increase your counter-offer. Keep restating your counter-offer until they come down from their original price. Generally, you can go up from your counter-offer depending on how much the salesperson came down from their original price. So, if the original price was $100, you offered $50, and the salesperson responded with $90, you can increase your offer to $60. Remember, every time you give an offer, you can never offer anything lower after that, or walk away without buying if the salesperson accepts your offer. If the negotiation seems to stop at a price that is higher than what you’re willing to pay, do not keep pushing and begging the salesperson. Smile, and say the price is higher than you’re willing to pay, say “thank you”, and walk away. At any point, avoid showing anger, frustration, and disrespect (such as a fake laugh at the salesperson’s offer, or telling them it’s cheaper somewhere else.) If the negotiation seems to stop at or below the price you were willing to pay, accept the salesperson’s offer with a smile and if possible, a handshake. Once you have accepted the salesperson’s offer or the salesperson has accepted your counter-offer, do not even think about restarting negotiation on the price or asking for a discount. Once you’ve agreed to pay a price, or the salesperson has accepted your offer, it is a done deal. Now, the negotiation is over, you and the salesperson are friends, and both are mutually benefiting from the deal. Say “thank you” and smile when leaving even if the haggling was tough and even if the discount wasn’t as great as you were hoping for.

Not all salespeople you meet will have these same standards. Some salespeople may show disrespect. That’s okay. Remember to stick to your principles.

Happy haggling!