The Art of Negotiation - Buying Stuff in China 101

The art of negotiation has become a lost form. I am not talking about contracts or businesses between companies. A common perception of negotiating has always been frown upon or negative. It is true that it takes patience and most people don't like the hassle of negotiation and think that the price they see is fixed. But if you ever plan to visit mainland China, you should continue reading this.

For people who have been to mainland China, there reaction to the prices will most likely be positive. Everything in China is super cheap and a majority of things you get anywhere else came from China. Especially if you are an American, they will treat you like a prince and show you the "good stuff" for a "great" price just for you.

Here is the story of my first experience of buying a jade necklace in mainland China. First off, they know immediately that I was not from mainland China and they can tell soon after that I was from either Europe or America. A jade tiger necklace caught my eye and right there was when I was hook, line and sinker. The price on the necklace was approx $200 USD. The price was good but I wanted to see if I can get a discount. Sure enough, I got it to $175 USD and was thrilled. Three days later, we visited my mom's friend. She saw my new necklace and asked if I negotiated. I said yes but she said that was not good enough. Here is what she said:

1.) Never show any interest in an item you want. You should always act like you don't have to have it. The salesperson always look at facial expression so if you see something you really want, they will pounce on you.

2.) Counteroffer the price on the tag by 90 percent. If the tag says $1000, tell them I want it for $100. If the price came from the person, then counteroffer it by 80 percent. $1000à $200

3.) You will never get the item for the price the first time. They will try and entice you by giving you a meager discount like $900. You have to walk away and look at something else. Come back after 10-15 minutes while looking casual like to just happen to come back.

4.) The second conversation is about reaching a middle point. Your goal is to try and get the item approx 45 to 60 percent the original price. The next counteroffer will usually be a much better price, somewhere around the $750 to $850 mark. This is the time to act friendly, converse about this and that. If you can't get that $1000 item to be $400 to $550, then it is time to walk away yet again.

5.) The final walk back will be the last attempt. If you don't have to have that item, be firm and try again with an offer somewhere near 50% off. If you have to have it, then try for the 40% off or $600 for that $1000 item.

6.) ANYTHING YOU WANT TO BUY SHOULD HAVE AT LEAST A FORTY PERCENT DISCOUNT! The profit margin per item is really ridiculous and that is why Chinese salespeople love to see American tourist. They know that Americans do not haggle or negotiate.

7.) Anything in China can be negotiated, except for eating at a restaurant and taxi services.

I will admit that it has a learning curve especially the first step when you tell the person with a straight, non-nervous face that I want that item for 10% of the original price. After awhile, I became much better. I was able to easily negotiate silk mattress, another jade necklace, bags of fruit, candy, random gifts for friends/family.