The Pearl Market, Beijing
After attending a State Department meeting on a variety of topics, including the fact that “IP theft is insidious” in China, we took their advice and headed to the Pearl Market to gain some insight to the issue. The Pearl Market is a multi-story building in Beijing where domestic and foreign shoppers alike can walk a seemingly endless maze of household goods, clothing, shoes, luggage, and jewelry. The mix of real and fake is seamless but the common denominator remains the same—it’s all inexpensive in comparison to the prices found in stores in the United States. For example, a multi-string set of fake pearls in the United States can cost around US$30.00. Comparatively, a multi-string set of real pearls at the Pearl Market in Beijing can cost around US$35.00—if you are willing and able to negotiate. Do not worry, however, because an ability to speak Mandarin is not required.
'THE' fake Louis Vuitton purse and real pearls
Now I should preface my negotiation experiences in China with the fact that I do not speak ANY Mandarin. And by ANY I mean zilch. I cannot properly pronounce the words “nĭ hăo” (hello) despite slaughtering its use throughout the cities of Beijing and Shanghai. It’s true and I am not proud of it, but I use it as an example of the gravity of my Mandarin ineptitude. That being said and much to my surprise, I did not need to speak Mandarin to negotiate in China. All I needed was an idea of what I wanted to pay, the guts to walk away, and a calculator. Of course, the market vendors know this and they are prepared for your ignorance. Impressively, they are fluent in Mandarin and English and will put you to shame if you even try to stumble through your Chinese phrasebook.
Vendor stalls inside Pearl Market
After presenting you with the number on the calculator, you quickly ascertain if you can easily divide that number by six in your head to work out what the US equivalent price is. The number six ruled my shopping experiences in China. Since the number six multiplication table had not been on the forefront of my mind since sixth grade, I relied heavily on the calculator application on my phone. Typically, the number you are presented with is about two or three times more than the price you are willing to pay. The vendor’s only mistake is that when they perceive your furrowed brow to be a reaction to their offer, not the fact that you cannot figure out how to divide 6 into 334 Yuan. As a result of your befuddled face, the vendors ask, “How much do you want to pay?”
Example of Chinese Yuan
Now here is where some good negotiating skills can come into play. Do not say a price that is reasonable. Come up with an embarrassingly low price in your head and tell them that instead. I promise you, NOTHING is too low. The vendors are prepared. They will gasp, laugh, shudder, and sink at your counteroffer, but it is all part of the process. At that point, you have established your price point. Through a series of back and forths and games with the calculator for the visually impaired you will creep closer and closer to your number. Now if you are patient, you can repeat this process ad nauseum at a pace of 50 Yuans per round. However, if you are in a hurry and need to move the process along, there is one fail safe option: walk away.
I mean it. Walk away. Put down the incredible bag, dirt cheap pearls, or wonderfully kitsch souvenir. I promise, it works. And if for some reason it does not, the same item can be found two stalls down. Once you start to walk away, almost immediately the vendor will call after you, “What is your bottom price?” You repeat your figure and turn around again, evidencing your take it or leave it attitude regarding the sale. Ninety-nine percent of the time, they fold and the deal is done. One-percent of the time you will be literally manhandled back into their stall and will proceed through a few more rounds of the calculator game before you settle on the price you originally offered ten minutes before.
I know, the whole ordeal can sound trite, but it is expected and trust me there are no unfair deals made. The vendor will dejectedly give you the merchandise in exchange for your fistful of Yuan, but they are not losing sleep because of the sheer volume. Following your departure, the process begins again with another American in your footsteps and they, my friends, may start negotiations at a price point much lower than even your own and your ‘deal’ no longer seems so great. Further, you can walk two booths over and find the starting price for your coveted Fu dog bookends to be even lower than what you paid after the ten rounds of intense negotiations you thought you just won. Although your shopping high will be crushed, you can easily put it all into perspective with some simple math: divide by six. You would have paid three times as much for the same object in the United States. You did good, fellow traveler. You did good.
Authentic Chinese chopsticks
Trinkets from China
Negotiation Tips for Purchasing ANYTHING in China:
- Know how much you want to pay before the negotiations begin
- You can never make an initial offer that is too low
- Know your six multiplication table
- Calculators are your best friend
- Hold your guns
- Walking away helps, even if it means being prepared to start the negotiation process over again two booths down.
- It helps to attend an infringement lecture at the Embassy and then visit the Pearl Market to keep a little money in your pocket.
- The official State Department’s stance is that fake luxury goods are bad, but even State Dept. reps admit they shop at the Pearl Market. Go figure.
- Finally, everyone's a winner in China. You are getting something for less than you would in the United States but you are still paying more than the vendor’s wholesale price by about six hundred percent.
