Bargaining for "The China Price"

An indefinite price is very common throughout China. Many daily transactions are settled through bargaining and people pride themselves on their haggling prowess. Bargaining (jiangjia) commonly extends from daily milk purchases to business deals. Even though you might think you know the price for a certain commodity or have a business contract including pricing and payment terms, this by no means signifies that your counterpart has this amount in mind. The role of a fluid final price is extremely ingrained in the culture, and a source of pride for those who have the ability to demonstrate their lihai (powerful) jiangjia abilities.

Dietz: I often take for granted price tags on everyday items. Walking into a department store in China and viewing the price tag by no means signifies that you will pay that price. In most cases, you would be foolish to do so. However, it becomes tiring to have to negotiate for everything. There is even a market near my apartment where you can haggle for shampoo if bought in decent quantities.

Bates: The shelf price on many Chinese goods is generally marked up around 40%; paying the asking price is big mistake. The day-to-day activity of bargaining for everyday amenities becomes very tiring. However, with Wal-Mart, Metro, Carrefour, and Oushan setting up shop in China, local people's bargaining power is diminishing. Although, the greatest convenience of big super-market chains opening here is you know what your buying unlike bargaining for something that may be fake or just doesn't work.

Dietz: I got caught up in the fever once, and attempted to buy a black market cell phone on the street. It was a cool phone with a camera and the usual features. It was lacking a sim card and a charger so I thought it was just stolen merchandise. I haggled, argued, insulted the man a few times, walked away, and finally got it down to the equivalent of $24. I felt pretty good about myself and had the urge to brag to people about how cheap I got this cellphone for (a very culturally acceptable thing to do). In the end, the phone up being a fake cell phone with a functional LCD but no internal components (they can make fake everything over here). Humbled to this day.

Bates: Being a foreigner, it's easy to get ripped off on just about anything. I once accompanied a Chinese friend to the train station via taxi and on the way back home I ended up paying double the original price. Even purchasing fruits and vegetables from local markets can be a challenge. My least successful experience was paying a reasonable price for oranges one day, and paying triple the very next day from the same vendor. Perhaps she sensed my great demand for oranges late at night.

Dietz: Earlier this year, I sat in on a payment discussion with a Chinese company. They were settling the final payment of a piece of a project, and the amount was stipulated on a previous memorandum of understanding. However, in order to save face and maintain a sense of business prowess to the company's leadership, the contract was renegotiated at final payment at GREEEEAT length (at one point even negotiating the exchange rate).

Other than purchasing houses, cars, and formal business negotiations, Americans are rather isolated from the world of bargaining. It comes as a shock to some the amount of price fluctuations on all levels, and in many cases, as a foreigner in China, the price tends to fluctuate up. Unfortunately, this is one of the lessons learned, and reminder that you have to be on top of your game with every purchase. The term 'buyer beware' has never seemed more relevant.