UpDate: The Gentle Art of Negotiation

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I received some very good question from a reader about the Art of Negotiation web page, which allows me to expand a bit on this subject.

Dear Gary,

*Do you negotiate in restaurants? * No, this is not necessary, unless there is no menu and the price they quote you seems high. But most places have menus and just go with the printed prices.

*Do you negotiate in hotels? * The higher end chain hotels have a set price, but the mid and lower end privately owned hotels regularly give discounts just for the asking. It is very simple to ask, "no puede dar me un discuento?" Sometimes, the hotel will say, "do you need a receipt?" If you say no, then they will often give you a 10-15% discount. Nothing ventured, nothing gained.

That said, we have even received discounts at the Hotel Quito simply by asking.

* Should I negotiate for tour services and guides?* Many tour services will give discounts too, just for the asking, especially if you are within one or two days of departure. The tour company may have 10 slots but only 8 filled. For them, it is better to get something rather than nothing for those last two slots, because their fixed costs are already covered by the first 8.

In fact, this is a very good strategy for getting low cost fairs to the Galapagos and to the Amazon, particularly if you are in country and your departure date is flexible. You can sometimes save as much as 50%, even on the expensive boats. Shop around.

There are many of tour agencies in the Mariscal Sucre district of Quito. But make sure you ask for references, and have them specify exactly what you are getting for your fare. Sometimes the agencies cut fares by cutting services.

If you go to two or three agencies and do some comparison shopping, you can get an idea of the differences for different prices Also, check the guide books. Many tour books will point out agencies that are less than solid.

*I assume that most people who are can afford to visit from wealthier countries are considerably wealthier than the people of Ecuador. I imagine that I may well feel quite a degree of guilt if I try too hard to get the best deal.*

This is most often an erroneous assumption and is characteristic (excuse me for being blunt) of the imperial attitude of many westerners who travel abroad. In the market places of Ecuador, especially Otavalo, the merchants have been doing this business for years, even centuries. They send family members to Europe and America to peddle goods they make here in Ecuador. They have found that the "we are so poor" approach works very well with gringos to separate them from their dollars. Then they get into their new 4 wheel drive pick-up and drive home.

I guarantee that no one will sell an item at a price that they do not want to sell it for. If you make a deal with a merchant, then you can be assured that he is happy with what he gets. Maybe you cut into his margin a bit, but he knows that the next gringo that comes along will make up for it.

Many times, westerners are played for suckers because of their "Oh, we just want to help attitude." The wise merchants love it. I have negotiated hard, even walked away from a potential purchase, then come back and buy it, only to find that on another day, a friend or acquaintance purchased the same item for 20%-30% less than what I paid. So regarding your feeling of guilt, I have one thing to say. Get over it. haha.

Now, in spite of all this, if you hire a guide, go on an excursion,etc., you've bargained hard for a good price, and then you get excellent service, reward the service with a good tip. Believe me, you will be appreciated.

So the bottom line is this: If in doubt about a quoted price, ask for a discount. This simple question takes you out of the tourist class and puts you into the traveler class. There is a huge difference and can save you significant dollars on your trip.

Happy journeys,
Gary