Bargaining is an essential skill in many parts of the world, whether you’re shopping in a bustling market, negotiating for a hotel room, or haggling for a better price on an item. Learning how to bargain effectively can save you money, help you experience local culture, and even improve your negotiation skills. While the process may vary from country to country, the following tips can help ensure that you get the best possible deal in any bargaining situation.

1. Do Your Research

Before engaging in any bargaining, it’s important to have a clear understanding of the item or service you’re negotiating for. Whether you’re in a local market or shopping for a service, having a rough idea of the fair market price can give you a strong starting point. If possible, compare prices at other stores or vendors to get an idea of the typical price range. This knowledge will help you avoid being overcharged and provide you with leverage when discussing the price. If you’re buying a product, check online or ask locals about typical costs for the item in question.

2. Set a Budget and Stick to It

One of the easiest ways to ensure that you’re not overspending is to set a budget before you start negotiating. Decide on the maximum amount you’re willing to pay for the item or service, and use this figure as your guide during the bargaining process. Setting a budget will help you stay focused and avoid getting caught up in the excitement of the transaction. If the vendor’s offer exceeds your budget, politely walk away and consider whether you’d be willing to increase your offer slightly. Being firm about your budget not only helps you save money but also shows the seller that you’re serious about not paying more than you’re willing to spend.

3. Start Low, But Be Reasonable

In many bargaining situations, it’s common to start with an offer that’s lower than what you’re ultimately willing to pay. This gives you room to negotiate upward while still staying within a reasonable price range. However, it’s important not to start too low, as this can offend the seller or cause them to shut down the negotiation. A good rule of thumb is to start with an offer that’s about 20-30% lower than the asking price. From there, you can engage in back-and-forth negotiations, gradually increasing your offer while keeping your budget in mind.

4. Use Silence to Your Advantage

In negotiations, silence can be a powerful tool. When a seller offers you a price, pause for a moment before responding. This gives you time to think and signals to the seller that you are considering their offer carefully. Often, the pause will prompt the seller to lower their price or offer a better deal in an attempt to move the conversation forward. Similarly, when you make an offer, don’t be afraid of leaving a quiet moment after your proposal. The seller may respond with a counteroffer or negotiate more aggressively, but silence can create pressure for them to close the deal.

5. Build Rapport with the Seller

Bargaining isn’t just about numbers; it’s also about relationships. Building a rapport with the seller can often lead to better deals and a more enjoyable experience for both parties. Start by being friendly and polite—smiling and engaging in small talk can go a long way in establishing a connection. Show genuine interest in the item or service you’re buying, and ask the vendor questions. When people feel respected and valued, they are often more willing to offer discounts or concessions. Additionally, demonstrating cultural sensitivity and understanding the local norms for bargaining can make the process smoother and more productive.

6. Don’t Be Afraid to Walk Away

One of the most effective bargaining tactics is being prepared to walk away if you’re not getting the deal you want. Sellers are often willing to drop their price when they see you’re not desperate to buy or if they risk losing a sale. By walking away, you show the seller that you’re not afraid to seek out alternatives, which may prompt them to reconsider their offer. In many cases, if you walk a short distance and wait for a moment, the seller might call you back with a lower price. However, if they don’t, don’t be discouraged—there are plenty of other deals out there.

7. Look for Added Value Instead of Only Lower Prices

While bargaining usually focuses on price, it’s important to consider added value as part of the deal. Instead of simply trying to drive down the price, ask if the seller can include additional products or services. For example, if you’re buying souvenirs, ask if they can include a small gift or offer free delivery. If you’re renting a service, inquire if they can provide extra features or benefits. In many cases, sellers are more willing to offer free extras instead of lowering the price, which can make you feel like you’re getting a better deal without damaging their profit margin.

8. Know When to Stop Negotiating

While bargaining is an important skill, it’s equally important to know when to stop negotiating. If the seller is offering a reasonable price that aligns with your research and budget, don’t push too hard. Remember that bargaining is a give-and-take process, and over-negotiating can sometimes lead to hard feelings or lost opportunities. Be mindful of the atmosphere of the transaction—if the seller is becoming uncomfortable or frustrated, it’s a sign that it might be time to agree on a deal and move forward.