Saturday, March 16, 2013

Shanghai S&T Museum Market - You Decide



If you're fortunate enough to visit Shanghai, then I recommend taking Subway Line #2 (Green Line) to the Shanghai Museum of Science and Technology.  I've been here a few times during my two trips to Shanghai but have never entered the museum.  I go for the underground market in the basement of the museum that is adjacent to the subway stop. 

The deals and labels are not what they were in 2009.  Seems that the industry of counterfeit, luxury goods is on the wane.  Overall:
  • quality of goods is better
  • prices are ok
  • far fewer designer labels
So why recommend the stop?  The culture and experience - you buy what you negotiate.

Except for cars we rarely engage in negotiations when retail shopping in the US.  It's just not part of our culture.  Here, it's expected and necessary.  The game has some unwritten rules with a particular rhythm.

You walk into a shop, find an item of interest and of course there is no price tag.  You ask about the price of the item and the game begins.  Let's say it's a nice handbag for your wife.  They'll immediately tell you that you have an excellent eye for quality and that your wife is very fortunate to have someone like you shopping for them.  They'll ask where you're from.  "What brings you to Shanghai?" After a couple of minutes you'll need to remind them that you would like a price.  They'll generall quote you a price of 600 - 800 RMB (~6 RMB/USD).  You politley decline and start to leave.  At this point they'll ask you what price are you willing to pay. 

You're now at the critical juncture - your opening bid in the negotation.  I generally recommend beginning at 10-15% of their initial price.  So in this case you open with 80 or 90 RMB.  They'll talk about the fine quality of the product, the fine leather maybe even the quality of the zipper and snaps.  They're losing money but would agree to sell it to you for 350 RMB.  It's advisable to begin leaving and politley stating that you're just too far apart to negotiate further.  They'll stop you and hand you a calculator to place another bid.  So you bump up to 110 RMB.  At this point they will fein insult and hurt with even some anger.  They'll say that they already dropped their price by 50% and you're only going up a little bit.  And it continues like this for awhile until you agree on a price. 

A few notes:
  • I'm not that good at it.  The haggling gets old quickly and I usually end up buying an item for an extra 20 or so RMB.  Yes, it cost me an extra $3 but I was done.
  • They'll negotiate lower price with Chines natives than westerners.  Take a friend with you the first time, if possible.
  • Stay focused.  Decide what you want and don't get distracted.  They have just about everything imagineable in this market.


This is Tina.  We purchased a couple of wallets and handbags at her shop.  She had a good sense of humor and was fun to talk with.  It was pleasant to negotiate with Tina as she joked, smiled and laughed while you negotiated.  She was happy to allow me to take her picture.





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