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Bargaining is an integral part of the social fabric of China and getting involved brings more than just financial rewards – it is a great way to interact with the local population and learn more about the cul-ture and even have some fun.
When you walk out of the Metro station at Pudong’s Science and Technology Museum （Metro Line 2） and into the underground mall next door， you are greeted by cold fluorescent lights and shopkeepers hounding you to come and check out their tiny stores. This place is known as the “SciTech Fake Market”and has all your basic “fake market”staples like knockoff shoes， polo shirts， watches， bags and DVDs. What makes SciTech stand out from other underground markets is that it is one of the best places to buy inexpensive touristy gifts， cheap toys， winter clothing and luggage. Yet another thing that stands out is that it seems to be one of the easiest places to bargain.
Foreigners： “Don’t be afraid to walk away”
China Business Focus went to Pudong’s Science and Technology Museum Market in order to find out which strategy the foreigners and Chinese people use when bargaining. Talking to both Chinese and foreign people the magazine experienced that they all used some of the same methods when bargaining but that the Chinese people at some point had an advantage when it came to getting their way and getting the decided price.
While walking around at the market China Business Focus met several foreigners who had bought dif-ferent things using a specific strategy. One of the persons who China Business Focus met was 23-year-old Allison from the United States. Her advice to other foreigners when bargaining in China is：
“Don’t be afraid to walk. Don’t get too emotionally attached to anything that you are trying to buy.”
According to many of the foreign- ers you have to be confident， walk away if the seller is not willing to lower the price and stick to the price you have decided that you want to pay for the product. The 21-year-old American David agrees with Allison and elaborates：
“I also believe that you have to be very confident because if you show that you are not a strong bar-gainer they will know. For instance you have to be able to walk away and be confident that there is someone right down the street who has the exact same thing and who is willing to be broken more than the other person. Even though you look at a number and it seems so cheap you have to know that it cost them 10 times less than what they are selling it for.” It is easier to bargain if you are Chinese or speak Chinese
As a foreigner it is not always easy to bargain with Chinese people and several of the foreigners whom China Business Focus talked to had experiences that bargaining suddenly becomes much easier when being accompanied by a Chinese person. Allison explains what one seller said to her：
“You have a Chinese person with you. We will give it to you for 50 yuan instead of 75 yuan， for example，” Allison explains.
And the 24-years-old American Mohammed has had the same experience：
“This is actually my second day coming here. The first day I came with our programme director who is Chinese and the way she bargains is strict. She only says one price and if they are not going to accept it she will just walk away. And they are not getting aggressive with her or anything. It’s a total different behavior，” Mohammed explains.
But as a customer you do not only have an advantage when being accompanied by a Chinese person. If you know some Chinese it apparently also pays off. The 43-year old Danish woman Kikki Gummer explains：
“Because I speak a bit Chinese， the sellers sometimes give me a better price because they think it is good that I’m trying. A very good strategy in my opinion is to listen to and see what the Chinese people pay when they buy the same stuff as you do.”
And it is not only the foreigners who believe that the Chinese have an advantage when it comes to shopping at the markets and bargaining with the sellers.
“Foreigners do not know about the situation and price in China. And some business owners would like to cheat foreigners （Chinese use the term “zai” –meaning slaughter your purse）， hoping to get more profits，” 33-year-old Chen Lianmin， who is a marketing assistant， explains.
28-year-old Wu Min who is a journalist and an editor agrees with Chen Lianmin. She advises the foreigners to learn Chinese so that the bargaining will be easier：
“Learn some basic Chinese and you will realize that Chinese people are actually easy to get along with，” Wu Min says.
Walk Around into Different Shops
Many of the tips on how to bargain in China are the same when you want to bargain and shop in Shanghai. Many people are not really familiar with the market price of the things they want to buy， and the sellers are familiar with that. So what do you do？ You enter a shop and ask for the price on a certain thing you would want to buy. The seller will probably give you a high price and you say it is too much. Then you see the next proposed price and then you leave the shop. Once you leave the shop， the seller will give you a final price. Keep this price in mind and continue to the next store and offer 40% lower than the proposed final price in the last shop. The seller will probably start to negotiate a good price for you at this time. Remember this price and go on to the next shop until you reach a deal that is the lowest you can get. That is probably a good deal.
“My advice for foreigners would be to walk around in the different shops first and don’t just take the first offered price，” 25-year-old Cate from Ireland says.
The most important thing is therefor to be patient. If you plan to buy something， ask around in the mar-ket for their final prices and in the end of the day you will receive great information about how much you will need to pay for a certain item.
What you never shall do is to follow somebody that approaches you and ask you if you want to buy bags， watches， DVDs. And it is also not a good idea to go to a fake market to do spontaneous shop-ping. Those are the biggest mistakes many customers do because they end up buying something they did not plan， and pay more for it.
Remember： never feel like you need to buy the item you bargain about. You are the one holding the cash. Not the seller. Be confident， respectful and correct.
Top 10 tips for bargaining in China
1. Learn some Chinese： Most Chinese people love when foreigners make an effort and try to learn their language and something about their culture. A few Chinese phrases can do wonders to position you as a serious bargainer. Learning to count in Chinese and to use and recognize the Chinese system of counting with your hands will earn you a few smiles， compliments on your excellent Chinese and hopefully a more reasonable starting price. If counting starts to wear you down， then just grab the calcu-lator that is no doubt close at hand and type your prices in.
2. Pricing： Bear in mind where you are shopping and remember that prices increase relative to the number of tourists around. As a rule of thumb， aim to pay around a third to a tenth of the asking price， according to the item and location. This takes us on to tip number 3.
3. How much is it worth to you？ Mentally deciding on a price before you open negotiations is crucial. It is easy to get carried away in the heat of the moment and pay more than you wanted to. Look at the quality and think about how much money you are willing to part with and take into consideration the cost of a similar item back home. The chances are if you pay less than a tenth of that price you will be happy you have bagged a bargain， even if the real cost should have been lower. 4. Start low： Having settled on a mental price， it is time to start bargaining. Remember， asking the price opens the door to a sale and you need to be ready to buy if the vendor comes down to your price range. The trick here is to avoid giving a number for as long as humanly possible， forcing the vendor to decrease theirs.
When offering a price， always start 50% lower than you’re willing to pay to give yourself some room for maneuver. The seller’s reaction will also be a good sign as to whether you are even in the same ball-park. If the sellers for example roll their eyes and go back to what they were doing without a second glance， then you can be sure that your offer was way off the mark. A more dramatic response involving phrases such as “You kill me！”， “I lose money”or “No money to feed my family！” take us into bargaining tip number five.
5. Ignore the melodrama and do not get emotionally attached： The melodrama is all part of the act and an effort to weasel a higher price out of you. There is about as much meaning in this as there is in the phrase “friend price”. China Business Focus can assure you that you are not anyone’s “friend”here and nobody will ever sell to you at a loss.
6. Walk away： If you have given your final price and the stallholder stubbornly refuses to budge， then shrug and walk away. If they want the sale， they will call after you. If not， consider it a reconnaissance mission and move on to the next with a more confident idea of the pricing.
7. Take your time and have fun！ Perhaps one of the most important things to remember in any bar-gaining situation is to smile and be friendly -rubbing the vendor up the wrong way by sounding rude or angry won’t do you any favors whereas having a laugh and a joke will.
8. Get the best price： Just repeating your target number is not going to get you the best deals. As we said earlier， starting low is the way forward but there are a few other little tricks you can use. Increase your offer in small increments， especially on lower ticket items -the tendency is to jump up in RMB 10 slots but remember， for a lot of people in China， that’s almost an hour’s wages！ You can also try re-minding them they are not selling genuine Gucci/Prada/ Rolex etc and point out any faults in the finish. Buying in bulk is also a fine way to get prices down - go with your pals and negotiate your buys together.
9. Bring small change： Handing over a redback often gives rise to calls to round the numbers up， with claims of “no change” or “just a little extra.”Smaller denominations avoid this and also the issue of counterfeit cash， which can easily make its way into your hands in a market.
10. Timing： Come around closing time， patience is wearing thin and vendors have less time for games， so you’re likely to get better prices with far less effort - they’re packing up and ready to head home so any sale is a bonus！ There are also good deals in the morning， and early birds can cash in on the su-perstition that giving a low price to the first customer of the day is auspicious and opens the way for a booming day of trade.
When you walk out of the Metro station at Pudong’s Science and Technology Museum （Metro Line 2） and into the underground mall next door， you are greeted by cold fluorescent lights and shopkeepers hounding you to come and check out their tiny stores. This place is known as the “SciTech Fake Market”and has all your basic “fake market”staples like knockoff shoes， polo shirts， watches， bags and DVDs. What makes SciTech stand out from other underground markets is that it is one of the best places to buy inexpensive touristy gifts， cheap toys， winter clothing and luggage. Yet another thing that stands out is that it seems to be one of the easiest places to bargain.
Foreigners： “Don’t be afraid to walk away”
China Business Focus went to Pudong’s Science and Technology Museum Market in order to find out which strategy the foreigners and Chinese people use when bargaining. Talking to both Chinese and foreign people the magazine experienced that they all used some of the same methods when bargaining but that the Chinese people at some point had an advantage when it came to getting their way and getting the decided price.
While walking around at the market China Business Focus met several foreigners who had bought dif-ferent things using a specific strategy. One of the persons who China Business Focus met was 23-year-old Allison from the United States. Her advice to other foreigners when bargaining in China is：
“Don’t be afraid to walk. Don’t get too emotionally attached to anything that you are trying to buy.”
According to many of the foreign- ers you have to be confident， walk away if the seller is not willing to lower the price and stick to the price you have decided that you want to pay for the product. The 21-year-old American David agrees with Allison and elaborates：
“I also believe that you have to be very confident because if you show that you are not a strong bar-gainer they will know. For instance you have to be able to walk away and be confident that there is someone right down the street who has the exact same thing and who is willing to be broken more than the other person. Even though you look at a number and it seems so cheap you have to know that it cost them 10 times less than what they are selling it for.” It is easier to bargain if you are Chinese or speak Chinese
As a foreigner it is not always easy to bargain with Chinese people and several of the foreigners whom China Business Focus talked to had experiences that bargaining suddenly becomes much easier when being accompanied by a Chinese person. Allison explains what one seller said to her：
“You have a Chinese person with you. We will give it to you for 50 yuan instead of 75 yuan， for example，” Allison explains.
And the 24-years-old American Mohammed has had the same experience：
“This is actually my second day coming here. The first day I came with our programme director who is Chinese and the way she bargains is strict. She only says one price and if they are not going to accept it she will just walk away. And they are not getting aggressive with her or anything. It’s a total different behavior，” Mohammed explains.
But as a customer you do not only have an advantage when being accompanied by a Chinese person. If you know some Chinese it apparently also pays off. The 43-year old Danish woman Kikki Gummer explains：
“Because I speak a bit Chinese， the sellers sometimes give me a better price because they think it is good that I’m trying. A very good strategy in my opinion is to listen to and see what the Chinese people pay when they buy the same stuff as you do.”
And it is not only the foreigners who believe that the Chinese have an advantage when it comes to shopping at the markets and bargaining with the sellers.
“Foreigners do not know about the situation and price in China. And some business owners would like to cheat foreigners （Chinese use the term “zai” –meaning slaughter your purse）， hoping to get more profits，” 33-year-old Chen Lianmin， who is a marketing assistant， explains.
28-year-old Wu Min who is a journalist and an editor agrees with Chen Lianmin. She advises the foreigners to learn Chinese so that the bargaining will be easier：
“Learn some basic Chinese and you will realize that Chinese people are actually easy to get along with，” Wu Min says.
Walk Around into Different Shops
Many of the tips on how to bargain in China are the same when you want to bargain and shop in Shanghai. Many people are not really familiar with the market price of the things they want to buy， and the sellers are familiar with that. So what do you do？ You enter a shop and ask for the price on a certain thing you would want to buy. The seller will probably give you a high price and you say it is too much. Then you see the next proposed price and then you leave the shop. Once you leave the shop， the seller will give you a final price. Keep this price in mind and continue to the next store and offer 40% lower than the proposed final price in the last shop. The seller will probably start to negotiate a good price for you at this time. Remember this price and go on to the next shop until you reach a deal that is the lowest you can get. That is probably a good deal.
“My advice for foreigners would be to walk around in the different shops first and don’t just take the first offered price，” 25-year-old Cate from Ireland says.
The most important thing is therefor to be patient. If you plan to buy something， ask around in the mar-ket for their final prices and in the end of the day you will receive great information about how much you will need to pay for a certain item.
What you never shall do is to follow somebody that approaches you and ask you if you want to buy bags， watches， DVDs. And it is also not a good idea to go to a fake market to do spontaneous shop-ping. Those are the biggest mistakes many customers do because they end up buying something they did not plan， and pay more for it.
Remember： never feel like you need to buy the item you bargain about. You are the one holding the cash. Not the seller. Be confident， respectful and correct.
Top 10 tips for bargaining in China
1. Learn some Chinese： Most Chinese people love when foreigners make an effort and try to learn their language and something about their culture. A few Chinese phrases can do wonders to position you as a serious bargainer. Learning to count in Chinese and to use and recognize the Chinese system of counting with your hands will earn you a few smiles， compliments on your excellent Chinese and hopefully a more reasonable starting price. If counting starts to wear you down， then just grab the calcu-lator that is no doubt close at hand and type your prices in.
2. Pricing： Bear in mind where you are shopping and remember that prices increase relative to the number of tourists around. As a rule of thumb， aim to pay around a third to a tenth of the asking price， according to the item and location. This takes us on to tip number 3.
3. How much is it worth to you？ Mentally deciding on a price before you open negotiations is crucial. It is easy to get carried away in the heat of the moment and pay more than you wanted to. Look at the quality and think about how much money you are willing to part with and take into consideration the cost of a similar item back home. The chances are if you pay less than a tenth of that price you will be happy you have bagged a bargain， even if the real cost should have been lower. 4. Start low： Having settled on a mental price， it is time to start bargaining. Remember， asking the price opens the door to a sale and you need to be ready to buy if the vendor comes down to your price range. The trick here is to avoid giving a number for as long as humanly possible， forcing the vendor to decrease theirs.
When offering a price， always start 50% lower than you’re willing to pay to give yourself some room for maneuver. The seller’s reaction will also be a good sign as to whether you are even in the same ball-park. If the sellers for example roll their eyes and go back to what they were doing without a second glance， then you can be sure that your offer was way off the mark. A more dramatic response involving phrases such as “You kill me！”， “I lose money”or “No money to feed my family！” take us into bargaining tip number five.
5. Ignore the melodrama and do not get emotionally attached： The melodrama is all part of the act and an effort to weasel a higher price out of you. There is about as much meaning in this as there is in the phrase “friend price”. China Business Focus can assure you that you are not anyone’s “friend”here and nobody will ever sell to you at a loss.
6. Walk away： If you have given your final price and the stallholder stubbornly refuses to budge， then shrug and walk away. If they want the sale， they will call after you. If not， consider it a reconnaissance mission and move on to the next with a more confident idea of the pricing.
7. Take your time and have fun！ Perhaps one of the most important things to remember in any bar-gaining situation is to smile and be friendly -rubbing the vendor up the wrong way by sounding rude or angry won’t do you any favors whereas having a laugh and a joke will.
8. Get the best price： Just repeating your target number is not going to get you the best deals. As we said earlier， starting low is the way forward but there are a few other little tricks you can use. Increase your offer in small increments， especially on lower ticket items -the tendency is to jump up in RMB 10 slots but remember， for a lot of people in China， that’s almost an hour’s wages！ You can also try re-minding them they are not selling genuine Gucci/Prada/ Rolex etc and point out any faults in the finish. Buying in bulk is also a fine way to get prices down - go with your pals and negotiate your buys together.
9. Bring small change： Handing over a redback often gives rise to calls to round the numbers up， with claims of “no change” or “just a little extra.”Smaller denominations avoid this and also the issue of counterfeit cash， which can easily make its way into your hands in a market.
10. Timing： Come around closing time， patience is wearing thin and vendors have less time for games， so you’re likely to get better prices with far less effort - they’re packing up and ready to head home so any sale is a bonus！ There are also good deals in the morning， and early birds can cash in on the su-perstition that giving a low price to the first customer of the day is auspicious and opens the way for a booming day of trade.