Monthly Newsletter - February 2009

The art of haggling is often practiced in Latin America. From Brazilian vendors to Peruvian taxi cab drivers, prices are often not set in stone. After several requests from travelers about the art of haggling, Latin America for Less presents you with these helpful tips.

1. Be Discreet About Your Haggling.Do not let other potential customers know that you are haggling with a storeowner. A vendor will be more likely to negotiate with you if he feels as if other customers will pay full price. If other people hear your negotiation, there is the chance that they will also want the special prices. Talk about prices quietly and without letting on to other customers what is going on.
2. Be Friendly and Respectful. Haggling is meant to be a game. Vendors will be more willing to deal with a friendly potential customer than someone who is rude or obnoxious. Realize that handicrafts are sometimes sold by those who made them and that your comments on the goods may be comments on their work.
3. Do Not Become Too Attached to a Certain Item. If your attachment to a certain item is evident, the vendor is more likely to know that you are willing to pay a higher price.
4. Walk Away. If negotiations do not seem to go our way, leave the vendor. It is possible that the vendor will give you one last price right as you walk out of the door. If no such offer is given, remember that the item will probably be there in an hour as well.
5. Dress Down. Do not expect major discounts from vendors when wearing flashy jewelry, expensive clothes or the latest camera around your neck. In the same manner, don’t advertise if you are staying at an expensive hotel or about to go eat at one of the city’s best restaurants. If you don’t want to make a vendor think you can pay heavily marked up prices, dress accordingly.

6. Do Your Research. Look to see what other shops are asking for the same goods. If you have walked away from an item at one store, it does not hurt to shop around at other stores. Inform yourself with the goods so that you can make smarter decisions.
7. Seek Bulk Price Reductions. Pick out one good and try to haggle it down. Then see what price you can get if you buy multiple of the same item. Tourists often find that this is a great way of buying gifts or souvenirs for friends and family back home.
8. Learn Some Foreign Language Phrases. Do not rely that the a vendor will know English. There is always a friendlier feel if a vendor feels as if their patron is trying to learn more about their culture. Fluency is not important, but it is helpful to know some numbers and words when haggling.
9. Set a top price. Take note of how much you would be willing to pay. This prevents you from purchasing something at a price that you may later regret.
10. Bargain Backwards. When you feel that you are being completely ripped off, start with a certain low price. Once the vendor rejects that price, suggest and even lower price. In some instances, this will let a vendor know that you are not thinking of paying nearly anywhere near the original offered price.
11. Remember that the Vendor Needs to Make a Profit. The vendor also has to make a profit. Do not expect massive discounts if other customers could come and buy the thing at an advertised price.
12. Use Reason. If you are haggling over a minuscule amount, remember that this money may help the vendor a lot while financially the amount may not be as significant to you. In addition, also realize what the difference in time means to you. Realize that you want to spend your time visiting new sites and learning more, not stuck inside a tourist shop angry over prices.

Source: How to Haggle, Top Ten Tips on Haggling

By
Alex Seeger

If you have any questions regarding his article, please write to him at: alex@peruforless.com

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• Newsletter January 2009
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