China used to have a two-price-system, one set of prices for Chinese and one set of prices for foreigners. While that was abolished a while ago, it still sticks in the heads of some people. Vendors think that all foreigners have an incredible amount of money to spend and will often charge you three times the price they would ask from a Chinese person – or more. While you will have to resign yourself to the fate that you will always be charged more than the Chinese, you can try to keep the price difference at a minimum.
I’ve seen foreigners adopt a variety of strategies in order to avoid being ripped off. Some tourists just walk away when the first price they are told is not the one they are willing to pay. This might actually be very effective in the long run if more people started doing the same thing, but for now, you are more likely to leave empty-handed and disappointed.
Especially at places like the Silk Market, Hongqiao Pearl Market or Xidan – basically any place where there are lots of Western tourists – bargaining can be tough. There are a few markets in Beijing were vendors will start out at a price that is very close to what they are willing to sell for. You will eventually get some idea of how much money things are worth. The more you bargain, the better you will get at it.
Since I have found no satisfactory guide to bargaining in China in any of the travel guides I have consulted, I’ve put together a little “tutorial” myself. I have found this strategy to be very effective, although a little time consuming at times. There’s absolutely no need to feel bad. No vendor will sell to you if he doesn’t think he’s getting a fair price. Just be polite. Having a Chinese friend with you will save you a lot of time and money. But beware of having your tourist guide do the bargaining for you.
Step 1: Ask for the price.
Step 2: Tell the vendor it’s too much. If you have no idea of what you want to buy is worth, divide the price you were told by five(or so) in your head, and you will probably have a fairly realistic estimation of what it is worth.
Step 3: You will be asked how much you are willing to pay. Ignore that question (very important!) and ask the vendor to go down with the price some more.
Step 4: Walk away when the “negotiations” begin to stagnate. This will bring you much closer to the actual price.
Step 5: Once the price sounds fairly reasonable, you can tell the vendor what you are willing to pay. Always start out a bit lower than what you‘re planning to spend.
Step 7: If necessary, walk away again. If nobody shouts after you to come back, you know that your price was too low, and you will have to start over again at the next booth.
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Step X: Once you got what you wanted, feel smug and, most importantly, never ever ask a Chinese how much the stuff you just bought is really worth.
