Curious about where I haggled? Check out my Quito and Guayaquil TikToks!
We’ve all been there. Whether you’re in Mexico, Thailand, or Turkey, many countries throughout the world feature local markets where the price is more of a conversation than a hard-and-fast number. And while haggling is a fun cultural activity for outsiders, it’s the norm for the locals, many of whom will capitalize on the opportunity to uncharge their items to an unsuspecting tourist.
After getting royally ripped off on my first few trips to local markets in Mozambique and South Africa (I’m talking $20 for a T-shirt that immediately shrunk in the wash), I was determined to drive a hard bargain on my grad trip to Ecuador. Here’s a few tips I picked up along the way to ensure I got the best deal possible
- Learn the Local Dialect
Nothing screams “tourist” like not knowing how the locals speak. While it’s certainly not feasible to learn an entire language over the span of a weeks (or even a month’s) vacation, knowing a few terms can go a long way. For example, the typical way to ask “How much is this?” in Spanish is “Cuanto cuesta?” . In Ecuador, however, the locals use the more informal “Cuanto sale?” You may not be able to change your appearance or accent, but using the same terminology as the locals will show vendors that you’re not some average tourist.
2. Every Deal is a Bad Deal
If you’re traveling somewhere like Latin America or Southeast Asia, chances are the prices are significantly cheaper than back home. This was especially evident for me in Ecuador as they also use the US dollar. As a result, a vendor’s asking price may seem pretty cheap since it’s still much lower than what you’re used to seeing. But don’t let that fool you- you can still get that bracelet or carving for much cheaper.
This is where your acting skills come in. No matter WHAT the asking price is, you need to act like that’s the most ridiculous statement you’ve heard in your life. Throw your hands in the air, let your jaw drop, turn to the vendor next door in disbelief- anything to let the vendor know that they’re going to have to go much lower in order to do business with you. If they don’t drop their price right away (and some people won’t), move on.
In the later stages of the negotiating process, you may find yourself happier with the vendor’s counteroffer. NEVER SHOW IT. The second you show you’re interested or pleased, they have all the power, and will use that as a reason to maintain a higher price. Vendors will often brag about the quality or say that “this is a special offer just for you”, but that’s just part of their negotiating tactics. Stay strong!
3. The 20% Rule
When I first haggled in Mozambique, I was offered a shirt for 1500 Metical, and countered with 1000. At 66% of the asking price, I was worried I was going too low. But when my friend got the same shirt for 400, I realized it was quite the opposite. After an abundance of trial and error, I have found it best as a general rule to counter with 20% of the asking price. So if you’re being offered something for $20, counter it with $4. This may seem ridiculous, but remember- you’re at a local market, not a car dealership. I guarantee you that $4 is much closer to the actual value of the item than $20. A 20% counteroffer is just enough that the vendor will still take you seriously, but not too much that you’re being ripped off. Remember, your first offer won’t be accepted, so countering with $4 means you’ll likely get the item for $8-10- quite reasonable for the asking price. If you counter with a more “reasonable” $8-10, you’ll end up paying $15 and getting a bad deal.
4. Know When to Hold Em, Know When to Fold Em
“$10”
“I’ll give you $2”
“No. $10”
I found myself in this situation quite a bit in Ecuador. My counter offer was too low, and they wouldn’t budge, leading to an awkward moment of anticipation from both parties. If you find yourself in this situation, congratulations, you’re in an official Western standoff. Both of you stare each other down until someone caves, offering to compromise. Make sure you come out on top! If you speak first and counter with $5, they have all the power. Good luck getting that shot glass for anything less than $8. But if they cave and counter with $7, you’re in the drivers seat. $5 shot glass is in your reach.
But unless you’re the Clint Eastwood of haggling, you won’t win them all, and you’ll be surprised by how long a vendor may stare you down (they do this for a living after all). If you find yourself raising your price and the vendor isn’t lowering theirs, save your chips and move on to the next place.
5. Know When to Walk Away, Know When to Run
You’re going back and forth on the price of this lovely handmade statue you want to get for your grandmother, and have managed to get the price down from $18 to $12. But you’re really only willing to pay $10, and no matter how much you beg, the vendor isn’t going any lower. Here’s where to pull out the last stop, the mother of all negotiating tactics. Leave. Tell her it’s just too expensive, and start walking away. It may kill you since you spent five minutes haggling and really did want to buy that statue, but it’s going to kill the vendor even more. They were so close to finally selling that stupid thing but tested their luck a bit too much, and now you’re leaving. More often than not, walking away will cause the vendor to start dropping the price like Dez Bryant drops a game-winning touchdown pass (mad respect if you get the reference). All of a sudden that statue has gone from $12 to $9. And you barely had to say a word.
6. Two For One?
Money is more important than inventory, and many vendors would rather sell two items for $10 than one item for $5. So if you feel like you’re not getting a good deal but really want the item anyway, ask for two (or three). Chances are, they’ll gladly unload whatever’s in stock. You may be surprised to find how quickly the deal improves if you add in an extra. 1 T-shirt for $7 may be a tough sell, but ask for 2 T-shirts and you’ll spend $8. If you’re looking to buy multiple items, buy everything you can in the same place rather than buying individually. You’ll be surprised at how much you save!
If you aren’t trying to buy multiple items, this is the one time where being a tourist can play to your advantage. I’m not saying this is the most honest thing to do, but you can definitely pretend like you don’t quite understand what the vendor is saying and act like their price is for two items rather than one. If they say $8 for one wallet, grab two and hand them the money. If they don’t correct you, voila. One less gift you need to buy for the holidays. Remember, they set their own prices, so if they’re not making a profit they simply won’t sell the item. You don’t have to worry about giving them a bad deal.
So there you have it. Use these six tips, and you’ll be coming home with a lot of stuff for a very low price (much lower than your friends who were too worried about being polite to strike a tough bargain). 90% of vendors may find you ridiculous, but you only need one person to do business with.
For More Info on Ecuador’s Hubs of Bartering:
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