Friday, July 3, 2009

The Art of Negotiating with a Chinese Vendor.

As promised, I have compiled through my own good and bad experiences, the proper way to get any product of your choosing for the best possible price sold by any vendor in China. Here are the rules you must go by for an almost guaranteed success.

1. When you first decide you want a particular item ie: a set of chopsticks. You must first walk around and get a market price. They will all differ, so you want to try and find the items of the most similar qualities like design, workmanship, and materials. If you don't go looking around first, you're going to get screwed. I worked the whole bargaining process to what I thought was successful, however when I went to the next vendor the same thing was 1/4 of the price from the first spot I went to. Big mistake. So always establish a general market price for the item you want. Never buy too soon, the same items are practically in every corner you go.

2. After you've established the item you are interested in, you must ask them how much they want. Remember they are out to make any dollar they can, so the starting price is always going to be high as hell. Let's say the chopsticks will go for 150RMB. You should always respond with a lowball offer of 1/3 the asking price. Say 50. They will always laugh and say no. Then you ask them what they feel is a reasonable price. They will probably throw another price back at you say... 130. You just need to be firm with a little flexibility and say 60. They will be stubborn but you need to be stubborn back. They are itching for any American dollar they can get.

3. If you don't speak Mandarin, it's ok. In fact, it might be better that you speak English. I've tried both ways negotiating in Mandarin and in English. With Mandarin, it seems like you need to really know what you are saying. My speaking level is pretty conversational at best, but I knew what to say. With English, you are empowered. When my American friend and I were at a store we purposely spoke English to each other so that we can discuss the pricing. Later on, we realized some of the vendors can speak English as well. So we started to speak a little Spanish and at even Pig Latin... Es yay, I yay aid say ig Pay atin Lay! Silly, but sometimes you want to dicuss in private without them breathing down your neck. A typical line is.. "too much" or "your chopsticks aren't made very well, they are bad quality". You have to keep emphasizing that you can get the same thing in the USA for much cheaper than what they are asking for. Remember, more than half of our American goods are made in China. Why? Because the big wigs in the States are trying to capitalize on their sales by having cheaper costs. You gotta figure that anything you get their is only worth a few cents on the dollar. You have to let them know that you are aware of their seller's cost. Say something like... "I know your chopsticks only cost you 20, That's why 50 is reasonable." They are going to play it off like they are better than that, but in reality they REALLY want to sell it to you.

4. Before executing the sale you should always separate your money. If you have an idea of how much you want to spend, say the 50-75 RMB, have it prepared in one pocket. I bought these sunglasses for 70 RMB. The starting price was at 180 and I wasn't going to quit until I got the price of my preference. I purposely put 70 in one pocket so when it came down to it you won't show your wad of cash and it looks like you only have 70 to spend. Waving it around might also work... not like in an offending way. But show them you have the money and you are ready to buy, usually they start to blink $$ and will give in.

5. Do not look desperate. You have to be nonchalant about the whole thing. Let them know that if you don't get your price, you will go to the next vendor. That's last thing they want to hear because you are a tourist, and you ARE going to spend money if not with them, then with the next vendor you see. Tell them, if you can't get it here then, no worries, you'll go next door.

6. Most importantly, this is the single most effective gester in all of buying from the Chinese... WALK AWAY. If not, then step by step inch your way out of their storefront. As soon as you get near or out the door, they lost that sale and it sucks for them. I've done the showing them the money, and saying I'm going somewhere else and they didn't budge. So I walked. To be honest, it didn't matter to me that I didn't buy from that guy. But literally 200 ft. down the sidewalk, He chased me down and said "ok ok, your price is ok". So I went back and bought 2 items for 30. He originally wanted 50 each. Success!

When buying in China, unless you are purchasing from a fixed rate store which is hard to find unless you are in a legit shopping mall, the prices will always be flexible. Don't be afraid to bargain, and if you don't get the exact price you wanted that's also fine. As long as you can live with the amount you paid for, that's all that really matters. In my many purchases in China, I've gotten good prices and I've also gotten bad ones too. Through trial and error you will figure out what works and what doesn't. It will take a few times until you find that right groove and then it's just smooth sailing. I'm still a student at this, but I feel like I've learned alot this trip. My cousin told me he once got something (I forgot what it was) for 40 when the starting price was 250!! He is a native Chinese speaker which also helps, but it shows that the markup is ridiculously high geared for tourists like ourselves. So don't be a sucker (trust me, I was one at the beginning too) and pay anything more than half of their asking price. Most of the time, following these basic rules will work, but not everytime. It's all about perfect timing with these people. Remember this is all fun stuff, it's not like you HAVE to buy something. But if you do, let's make sure you get the best bang for your buck! Good luck!

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