Bargaining for products and services in China is the norm. Chinese sellers expect all buyers to do this, even their fellow countrymen!

Virtually any product or service in China can be had at a negotiated price - hotel rooms, taxi rides, souvenirs, and even food. Remember that the first price you are given by almost any vendor is highly inflated and not at all realistic. Knowing that, let the games begin!

The first thing to remember is that you are bargaining to pay an appropriate price for what the item is worth in China, not back in the United States. A small vase may be worth a small fortune in America, but its value is small in China, so attempt to negotiate an appropriate Chinese price. Remember that many items considered valuable in America are produced extremely inexpensively in China.

To gauge a realistic price, attempt to find out what locals would pay for the same item. If buying from a market or store, spend some time watching the transactions to see how the seller negotiates and the prices he settles for. That will be your guide. Shop around other stalls or stores. By bargaining with many sellers, you will get a good idea of what price items are sold for.

Although you may be tempted to feel bad about bargaining, you never should. A seller will never sell an item without making a profit, no matter how hard you bargain. The only variable is how small of a profit he is willing to make. You may also interpret a seller's aggressive attitude as being disgusted with or resentful of you, but it is most likely simply his way of trying to make you pay a higher price.

If after bargaining, you do not get the price you want, just walk away. More than likely, the seller will make one more offer. If not, walk away and negotiate with other sellers. Sooner or later, you will find a seller who meets your price, if it is realistic.

Before entering any market, make sure you are aware of the exchange rate. Do not rely on the seller to tell you what a price would be in dollars. Also know exactly what you are willing to pay. By knowing the real value of a product or service, in terms of dollars and its worth to you, you will be armed with the two most essential tools for bargaining.