Golden Negotiation Tips for Travelers

Negotiation is a skill we use regularly in our personal and professional lives. Any interaction that involves reaching an agreement is considered negotiation. 

Time, the importance of the negotiation outcome, and significance of our relationship with those involved in the negotiation, drive our approach and as a result the agreement we reach. Although some individuals are naturally better at influencing others, generally, negotiation skills are learned and improved with practice! 

The choice of words, act of silence, concessions made, body language, facial expression, spacing, time of day and all other behaviour during the negotiation influence our interactions and negotiation experience. 

Negotiation is not just about give and take, it is a multidimensional interaction with many considerations. Cross cultural negotiation adds another level of complexity to the interaction and professional cross cultural negotiation requires high level of awareness and diligent preparation beyond the scope of this article. 

However given it is travelling season here are some things to consider for more casual negotiations in souks (mostly found in Western Asia, Middle East and North Africa) when buying souvenirs from local sellers who have mastered negotiation skills through experience and practice!

Things to consider prior to start of the negotiations:

1- Information is power in negotiation. Always do your research ahead of time about the approximate cost of the products you are interested in. In Souks and old towns, prices are not given based on the cost of the product but rather the perceived value of the product to tourists. Given western currencies have higher value than most currencies in these regions, initial prices are highly inflated. By knowing the cost you can drive the negotiation toward a more fair price.

2- Opening price skews the negotiation zone. The sellers will give you a much higher price than they are willing to sell the product for. They expect you to negotiate. For some products the opening offer is five times more than what you can buy the product for. Do not let the opening offer drive the negotiation and do not settle for midpoint at the beginning of the negotiation, opening price has no basis! By doing your research prior to purchase you can move the negotiation zone closer to the actual value of the product. 

3- Most stores have similar products. If you see something you like don’t rush to buy it from the first store; you will find the souvenir you love again! Ask a few stores about the price of the product to get an understanding of the price range and then determine which one has the lowest opening price for you to start bargaining with. Many souks have a trend where the price goes up or down as you get further from the main street entrance. 

Once you decided who to negotiate with:

4-Let the seller talk first. The seller will give you a lot of information about the product and how it is unique. Silent is a good strategy at the beginning. Do not give out unnecessary information. Do not be too enthusiastic about a product or share how this product is hard to find or even the person you are buying the souvenir for will love this. With your silence, the seller may start to self negotiate resulting in a better deal. 

5-Breakdown the price. If you are buying multiple products, ask for individual prices and compare similar products. Ask clarifying questions and the rational behind the price specially when there is a big price difference between similar products. Then bundle products you want to buy and offer a lower price than their sum. For the deal sweeteners at the end of the negotiation it is easier to add another product to the mix for the total price you have agreed on than to get more discount! 

6-Negotiate on behalf of someone else. It is easier to negotiate on behalf of someone else than for yourself. Whether it is for the person you are travelling with or a gift for someone back home, the sellers show more flexibility when you are not the direct beneficiary of the purchase. By distancing yourself from the product you can get better deals! 

Non Verbal Communication Considerations:

7-Always be friendly. Negotiation is a social interaction. Even if you feel the person is giving a high price, do not call it out and challenge it openly. Always smile and be pleasant about the interaction both verbally and non verbally. Sellers give better deals to friendly people they like. 

8-Negotiate standing close to the exit. Sellers in souks are very friendly and will show you hospitality by bringing you tea and giving you compliments. Be grateful and smile but always in a non threatening manner give the impression that you are ready to leave if a good deal is not made. But do not make a “last offer” unless you are willing to walk away cause if you come back after the last offer, you have lost leverage! 

9- Timing matters. Most sellers in the souks show more flexibility to their first and last customer of the day! Go when the souk opens or toward the end of the day. But if you are going at the end of the day, be sure you are not rushed yourself to settle for a deal you are not happy with!

At the end of the day, shopping at souks is part of the cultural experience and is meant to be fun! It is an exciting negotiating engagement and practical learning which ends with great souvenirs to bring home!

Happy Travelling!