For centuries, merchants at Moroccan souks have honed their negotiating skills. But now you can beat them at their own game.

International Living Postcards– your daily escape

Tuesday, Sept. 12, 2006

You are guaranteed to find something enticing to buy in the souks (markets) of Marrakech and Fez. Deep in the medina–whose streets are so narrow, goods can only be transported by donkey–there still exists a medieval world of craftsmen straight out of Arabian Nights.

For centuries, the trades have been handed down like heirlooms from fathers to sons. In all Moroccan cities, most artisans usually have their own street within the souk–one for goldsmiths, another of silversmiths, yet anther for leather workers, and so on. While there are a few fixed-price outlets, haggling–usually over a glass of mint or apple tea–is the norm.

In many countries throughout the world, price tags are rarities–and Morocco is one of these countries. Merchants weigh up buyers, buyers weigh up merchants, and each tries to get the best price. Even if you think you’ve developed first-rate haggling skills, you are still probably overpaying! For centuries, the merchants in the bazaars have become adept at parting fools from their money. And they continue the practice with enthusiasm.

So, what’s a novice importer-exporter to do? Guidebooks are no help. In the shopping section of their mini-guide to Marrakesh, Fodor’s warn that traders start out by asking roughly double or even triple an item’s true value. They suggest that to arrive at an agreeable price, you should halve the initial asking price and then fine tune the amount.

This is ludicrous. Do that and you’re really going to get taken for a ride. If Fodor’s had suggested "offer a quarter," they might have been nearer the mark. They go on to give their readers an indication of what rugs sell for. "Citadens (new rugs) are made by women in co-operatives. For a rug of one by two meters, the cost is about 1,000 dirhams to 12,000 dirhams." (That’s about $100 to $1,400 for a 22-square-foot rug.)

The craft co-operatives in eastern Morocco are paid 120 dirhams ($13.50) for these rugs by big city carpet traders. That rug made for $13.50 costs at least $100 in the souks of Marrakesh. By the time they reach the States, even the most simple rugs have been turned into "collector’s items" to be sold for $165 and more.

What should you be paying for such a rug? We’d suggest around $30 to $35; leave the tourist prices for the tourists. For new rugs, you can calculate a reasonable price–that includes a decent markup for the merchant–at $2 to $3 per square foot for average quality, and $3 to $5 per square foot for better quality. Large antique carpets, however, can sell for thousands of dollars.

For crafts other than carpets, vendors don’t normally ask for such outrageous prices. A good rule of thumb here is to offer a quarter of the merchant’s starting price–if he gives you one. They will usually try to sucker you into making the first move. If so, this is how you should play it:

For instance, you pick up a pyramid-shaped wrought-iron Berber lamp that you think will sell well back in the States. (And they do–Stateside stores sell these lamps for around $50–but you can buy them in Morocco for $15).

Merchant: "Hello, Mister. You speak English? You like this lamp?"

You: "Yes, I do. It’s very pretty."

Merchant: "It is made by the Berber people. Very nice. How much will you pay me?"

You: "I’m sure it’s too expensive for me. I don’t think I can afford it."

Merchant: "Please, tell me your price."

You: "I’m afraid you will be angry if I tell you what I can pay. I don’t have a good job–I am not a rich person. I really don’t think I can give you what it’s worth."

Merchant: "My friend, you will not insult me. Please, tell me how much you will pay."

Then you name a very low price, say 50 dirhams, around $5. You know the lamp is worth a lot more than this, but you’ve got to enter into the bargaining procedure from a low platform. The merchant will roll his eyes in horror, but immediately quote a price that’s higher than yours. It will be far higher, maybe 200 dirhams. However, it’s still lower than the 300 dirhams he might quote to those tourists who don’t understand the rules of haggling.

But you now have a negotiating point. And this is when the mint tea will arrive. While you are sipping it–and no doubt chatting about each other’s families–you can start to slowly increase your price. And the merchant can slowly reduce his. Tourists often believe that the correct way to negotiate is to counter the merchant’s 300 dirhams with an offer of 150 dirhams. Then, they’ll whip out a calculator and try to figure out the difference between the two prices. If they can get the lamp for 225 dirhams, they figure they’re getting a good deal.

Of course, they’re not. Bargaining doesn’t work like that in Morocco. What you should do is try to estimate what is a reasonable wholesale price and then add a profit for the vendor. The savvy haggler is always polite. Acting like Attila the Hun or insulting the seller by saying, "Your prices are ridiculous," or "I’m not stupid–you’re certainly not going to cheat me," will get you nowhere.

Steenie Harvey
Intrepid Explorer, International Living

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