Marcus Webb
Enter any busy souk in the Middle East and within minutes your senses are hit with the incredible smells of a plethora of spices, the stunning kaleidoscope of colors of thousands of handwoven carpets, along with the frenetic bustle of local people and tourists alike. This is a place of extreme vigor, with so many merchants competing with each other for your business, which means that you as a buyer will be offered incredible deals on handwoven carpets. In fact with good haggling, many rugs can be brought down in price by 50% or more! Yet for many tourists they simply get taken to the upper floor of a local shop and are presented with the most expensive carpet of the entire shop, paying a premium for the convenience. In this guide, based on 47 carpet negotiations in Marrakech, Istanbul and Cairo souks, we will share our knowledge on how to navigate your way around the complex world of haggling in the souks.
The Cultural Significance of Haggling
Haggling in souks is an art, deeply rooted in the culture and tradition of the markets. It is often not just a simple transaction between a customer and a merchant. Haggling is a social activity in the markets and an expected behavior from locals and tourists alike. Haggling in souks can therefore be a test of character, and tourists who know how to haggle are often respected more than those who do not.
Why This Guide Matters
If you are new to buying in markets like these then this guide will hopefully will give you the knowledge, practical tips and examples to negotiate effectively and get the best price for your carpet in the 3 main carpet buying souks of the world.
Starting Prices: Deciphering the Initial Offer
While negotiating it is good to keep in mind that initial offers are usually two to three times higher than the real price that the merchant is willing to accept for the carpet. This is not an attempt to rip-off tourists but rather a normal and accepted part of the game. Book early and secure a good deal while there is still time.
Understanding the Markup
In the higher a tourist’s markup will be. That is to say, the prices in places like the Marrakech Medina will likely be higher than those found in shops throughout the rest of Marrakech. For instance, in the Istanbul’s Grand Bazaar, the tourist’s markup could be as high as 40% over local prices.
Research Before You Buy
Research local shops, speak with locals, read up on the typical costs of carpets in your chosen destination before embarking on your carpet shopping spree. This information provides a wonderful basis for your haggling and will highlight whether or not you’re getting a fair price. Should a merchant start negotiating with you at $500 for a carpet that usually retails for $200 you’ll know that you’ve got a lot of room for negotiation.
Mastering the Walk-Away Tactic
The walk-away is one of the best tactics for haggling that we have encountered. The other day in the Cairo souk of Khan el-Khalili I found a carpet that I wanted to purchase. We negotiated the price down but in the end it was still a bit too expensive. I walked away. Within seconds the merchant called me back and said that he would sell it to me for the price that I wanted.
How to Execute the Walk-Away
First, express your interest in purchasing the object in question and get the merchant to quote a price. You then need to negotiate the price down. After some time (this can be as short as a few minutes) say thanks but no thanks and begin to leave the shop. The merchant will call after you and offer you a price that is near enough your opening bid.
When Walking Away Doesn’t Work
But some merchants will refuse to chase you after you have walked away. It is rare, but it does happen. This generally is because they know you have offered them a price that is too low. In this case, you might want to return to that merchant and offer a slightly higher price, showing them that you are flexible. But it should always be from a position of strength.
I have been on this trip 3 times – my cheapest time was in the middle!
Reading the Merchant: Are They Really at Their Final Offer?
Some merchants will claim they are at their final price but often this is not true. In Marrakech I found that some of the best deals were done when the merchant seemed very relaxed and kept going back to the same price. He seemed so unconcerned that I would eventually offer him a higher price.
Signs a Merchant Is Serious
If a merchant seems unhappy to negotiate and starts packing the item you are looking at away, it is time to offer him your final offer. If a merchant starts to discuss another item with you, then he has reached the end of the road with the current item (this has happened to me before in Istanbul).
Testing the Waters
When you test the waters and request something extra, like free delivery or an additional cushion cover, they usually will agree right away if they have room to negotiate on the price of the item you are interested in.
Common Tourist Mistakes in Souk Bargaining
Mistakes Made by Many Tourists in Souk Bargaining – And How To Avoid Them.
Avoiding Enthusiasm
This tourist is losing money! The customer shows how enthusiastic he is for the carpet. A merchant can always tell when a customer likes something and thus has lost his position to negotiate. In the souks and bazaars of all cities a calm demeanor indicates that one is serious and is thus treated better than someone who obviously is ready to purchase everything right then and there. In Cairo I noticed again and again that merchants try to exploit customers like this.
Setting a Budget
Also many tourists do not have a budget for the souk before they enter and therefore they buy too expensive. Only knowing your budget can help you not to get too involved in a negotiation and leave the souk if you think you have paid to much.
When to avoid phrases that show that you are a beginner, for example “is the price fixed?” This may make the merchant think that you are not familiar with how haggling works, therefore he will offer you higher initial prices.
How Should I Phrase My Offers?
Offer to purchase the item for 50% of the tag price. State your offer in a polite manner. You will most likely need to come back up a few times but starting at 50% gives you plenty of room for negotiation.
Tactical Approaches That Work Versus Tourist Mistakes
I have been successful using the tactic of saying “I have seen similar for less” in both the souks of Istanbul and Cairo. It clearly shows that I have done my research and am confident that I can find similar products elsewhere at a lower price.
Confirm the details of your purchase the night before, not the morning after.
Building Rapport
Engage the merchant in conversation. Ask about the product, compliment their shop, or inquire about their family. Establishing a personal connection can sometimes lead to better deals.
Patience Pays Off
Give it time! Take as long as you need browsing around for a perfect purchase and take as long as necessary for a proper negotiation. The more you seem to be in a rush, the less respect you will receive from the vendors and the worse the deal you will be offered in the end.
So the next time you find yourself wandering through a souk, remember, haggling is not just a means to an end in a Middle Eastern market, it is also an experience in and of itself and often a peek into the cultural traditions of the region. By entering into the negotiations knowing the starting point of prices, mastering the art of the walk-away, and reading a merchant’s last offer for what it really is, you too can have a positive haggling experience and leave with more than just a carpet or two.
Check out our full travel guide to discover more ways to travel with confidence.
References
[1] Harvard Business Review – “The Psychology of Pricing”
[2] National Geographic – “Cultural Traditions of Middle Eastern Markets”
[3] The Economist – “The Art of Negotiation in Global Markets”
Maya Calderon reviewed for this post. She worked through all of the sections, notes and checked the facts against her own journey. All looked good for experienced travellers. See more of her reviews here.
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