In Reply to: Bartering/ Haggling posted by bonanza on Thursday, 20. September 2012 at 07:43 Bali Time:
Bartering is probably common among locals, I wouldn't know - but most tourists don't barter. Of course there are some exceptions. :)
Haggling or bargaining over the price is common most places and it's a day to day part of local life too. Basically any market stalls and a lot of shops will not be fixed price. If a shop is fixed price, there will usually be a sign to say so, or you will be told when you try to haggle that the price is fixed.
If you start at 50% of their first price, then most often you will be paying well over what you should. Once that was the general rule but these days they often start at ludicrous prices so even 10% can be a good starting point - you just need to use common sense. Work out how much you think it's worth to you and keep that in mind as your end point - and start well below that. There's no fixed equation for you to use.
I once had someone tell me they wanted Rp300K for a cheap plastic watch. I laughed at him and started to walk away. He insisted I give him a price so I said 10K with a smile. He told me that my price was a joke. I countered that it was no more silly than his first price and left it at that. I don't bargain with people who start with stupidly high prices anymore. I just buy elsewhere. :)