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Bargaining in China to Avoid the Foreign Discount

Written by Robert Vance on August 8, 2008 – 9:23 am

During my early days in China, I often fell victim to what other ex-pats in China have called the “foreigner discount.” Whether buying fruit, pens, taxi rides, or dogs from the pet market, I frequently discovered later that I had paid 5 or sometimes even 10 times more than a local would have paid. This used to frustrate me until I discovered that being a foreigner in China did not necessarily mean that I had to single handedly fuel the local economy. Instead, I observed my Chinese friends bargaining for everything from soap to motorcycles and I realized that if I could learn the Chinese numbers, I could save myself a lot of money. During the early days, I am sure that I still paid more than I should of for items, but I soon became more confident about bargaining.

Six months later, while I was exploring in Lhasa, Tibet, I knew that my bargaining skills had reached a new level. I wanted to bring back souvenirs for my family and I had spotted some beautiful little colorful dolls that were adorned in the traditional Tibetan apparel. When I asked the old man who was selling them how much they were, I was a bit shocked to hear him answer “25 RMB.” Even taking the “foreigner” discount into account, I thought that the price was quite outrageous. “San kuai,” I said confidently to the man. 3 yuan. Since his initial price had been so outrageous, I thought I would counter with an outrageous offer of my own. He smiled and shook his head. He picked up one of the dolls affectionately and spoke rapidly in Chinese. I can only guess that he was telling me that the dolls were handmade or that they were made out of some special wood. When he saw that I was not going to pay 25 RMB, he dropped the price to 12 RMB. This time, I picked up the doll and examined it again. I shook my head. I just could not bring myself to pay 10 RMB for the little wooden face staring back at me. I shook my ahead again. More magic. The price dropped to 8 RMB. Wow, I thought. How low would he go? I shook my head and turned around and began walking away. Three seconds later, I felt a hand tugging at my shirt. It was the same man; this time he was offering me a doll for 5 RMB. I purchased five of the dolls from him and continued on my walk with more money in my pocket simply because I had made the extra effort to bargain.

With the exception of major supermarkets and chain restaurants, you can still bargain almost anywhere in China. In the past few months, I have bargained at fruit markets, hair salons, bus stations, computer stores,and even real estate companies.As I alluded to earlier, your Chinese does not have to be great in order for you to bargain. If you simply learn the Chinese numbers and the expressions “tai gui le” (too expensive) and “pian ye dian” (can you give it to me cheaper) you should have no trouble paying a price that is much closer to the local average. Chinese salesman are not necessarily out to cheat you; they are just taking advantage of the fact that most foreigners will never even bother to question the price. In other words, they are taking advantage of people’s ignorance or laziness. Do not be afraid to bargain. Most Chinese people will enjoy haggling with you and you can feel satisfied knowing that at least you tried.

When the man in Lhasa brought the price of the little dolls down to 3 RMB, I almost felt a little guilty. Was I cheating him? Absolutely not. Bargaining may be a fun game but a Chinese salesman is never going to allow himself to lose money. If the price that you ask for is truly ridiculous, your offer will be rejected no matter how many times you shake your head or walk away. Have fun with bargaining; the more you do it the more confident you will become. Bargaining is an important part of Chinese culture; give it a try and save yourself some Chinese RMB.



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3 Responses to “Bargaining in China to Avoid the Foreign Discount”

  1. Logi on August 8th, 2008 at 2:49 pm

    Nice article. I have to share one experience I had. I was visiting a friend in Quching (not sure it’s spelled that way) and we went to Shanghai were he took me to a market. Other people and my friend had told me that paying 1/3 of the original price was the highest price I should settle for so I did some nice haggling at that market. But while haggling for a fake Rolex this one guy got really irritated and pulled a knife on me. The police arrested him like 2 seconds after he pulled the knife but I did not bother staying at that market any longer. Have to say though I felt really safe in China. Allot of police and even more people dressed like they were military/police :)

  2. Robert Vance on August 8th, 2008 at 6:02 pm

    @Logi,

    Thanks for the comments. Interesting story. Usually the sellers seem to be amused when I bargain with them. You must have encountered a bad apple. I am guessing you were in Chongqing…in the Western part of China? I am guessing you did not end up buying that watch…:)

  3. Logi on August 9th, 2008 at 3:21 am

    Well it was fun at first to haggle and do all that waving and walking away and all that stuff. The incredible understanding of body language between me and the seller was almost beautiful. But after the knife thing I kinda lost the mood and just wanted to get away from the place. It was quite funny though cause the guy with the knife was like 152 cm and like 35 kg and I’m 182 and 100 kg. So first when he came at me before he pulled the knife I thought to myself what does he think he can do? But then he pulled the knife and my question got answered.
    Took me some time since I am terrible with names but the city I was in is called Gongqing, it’s a small city near Lake Poyang, then I went to Nanchang and from there to Shanghai. It was a true adventure traveling by bus, train and feet :)
    The market was the “fakemarket” in Shangai.

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