If you are not used to bargaining, you might wind up paying 100% above retail in Egypt! Bargaining can be great fun and result in excellent buys. After you get the hang of doing it, you will have a wonderful time shopping and meeting the locals, who will see you as a very savvy shopper.

Most goods in Egypt are either negotiable or discounted. As a general rule of thumb, unless you see a sign indicating otherwise, you can expect the prices of most products in small shops to be negotiable. You can safely assume all stated prices are the starting point from which you should receive a discount of 10 to 60%.

Our general rule on what items to bargain for is this: Bargain on ready-made items you can carry out of the shop.

Except for custom-made items, department stores, and shops displaying a "fixed prices" sign, never accept the first price offered. Also, carefully examine the product to ensure you are getting the value you are negotiating for. Be sure to get a receipt and observe the packing process.

Keep in mind that the goal is for both buyer and seller to emerge from the bargaining process as winners. The negotiations should be kept civil and polite.

16 Rules for Successful Bargaining    

1. Do your research before you start bargaining. Compare prices among the various shops you visit. You should have already done some price checking at home, using catalogs and discounters.
   
   
2. Determine the exact item you want. Be sure you really want it, but don't reveal excessive interest in and commitment to it. Try to appear noncommittal.
   
   
3. In your mind, set the maximum price you are willing to pay.
   
   
4. Play a role. Shopping in Egypt involves playing the roles of buyer and seller with lots of expressive drama. Assume the role of buyer or bargainer, rather than merely being "yourself."
   
   
5. Establish good will and a personal relationship. Smile and show a sense of humor as you bargain. Be careful about eye contact, which can be threatening. Never insult the merchant.
   
   
6. Let the seller make the first offer. Do not start by revealing how much you are willing to pay. Find out how much the seller is asking, and start from there.
   
   
7. Take your time. You want the merchant to invest his/her time in you. If you indicate you are impatient or in a hurry, you may wind up paying more. The merchant may try to soften you through offering a beverage; do not succumb to this.
   
   
8. Use odd numbers in offering the merchant 40 to 60% less than what s/he initially offers. Using numbers such as 62, 173, or 817, for example, may lead the merchant to think you are a seasoned haggler who expects to do well in this negotiation.
   
   
9. Appear disappointed and then take your time again. Try to assume a sympathetic demeanor as the shopkeeper explains why s/he cannot lower the price. Never act as though you think s/he is a thief! Let the seller save face.
   
   
10. Counter with a new offer at a 35% discount. After that, the seller will probably come back with a 20% discount.
    
    
11. Be patient, persistent, and take your time again by carefully examining the item. If you start to leave, the merchant may try to stop you, especially if there is still some bargaining room.
    
    
12. Be creative for the final negotiation. Walk around. Identify an item marked E(10 which you think might make a nice gift for a friend, and ask if s/he will include this in the final price. Or you can explore the possibility of getting the merchant to include some "extras" if you accept his/her final price. You may also want to negotiate packing and delivery processes.
    
    
13. Observe the "8 Foot Rule" for negotiating your best deal. Egyptians like to maintain close personal space, literally being in your face at times. If you move eight feet outside the entrance to the shop, you will be in a stronger bargaining position, as the merchant drops his price in order to get your business.
    
    
14. Be just as expressive as the merchant by repeating the "Oh, my God!" phrase. Many merchants in the bazaars have a flair for the dramatic. Play their game!
    
    
15. If you are with a tour group, bargain hard on your own. Do not ask your tour guide or driver to help you negotiate a price.
    
    
16. If you're visiting a bus stop shop or factory, don't buy where the crowds congregate, or be the last one out. Remember, the herd never gets a good deal! Look for a nearby shop that doesn't have a busload of tourists shopping inside.