Bargaining...It's a lot of work

Before making an offer, determine whether bargaining is part of the culture in the country you are visiting.

Take your time. You don't have to rush into anything, including the back of a truck, taxi, or airplane. Make inquiries to find the average price. If you can't spare the time to discover the true value and quality of something, do you really want it?

You are bargaining from a position of strength if, and only if: 
a) You are willing to walk away, or 
b) You look like you're willing to walk away.

Offering a price half what the seller originally offers and working up from there is not always a good strategy. Some sellers quote at ten times true value. If you bargain to half or three-fourths of that--which many backpackers assume must be a reasonable price--you are still paying an outrageous mark-up. Such prices are often asked by hawkers who approach on the street with beads or jewelry. Aggressive sellers are usually looking for a sucker.

To learn whether a price is fixed, show some interest in the item, but say, "It's too much." You've put the merchant in a position to make the first offer. If he comes down even 2%, haggle away.

Merchants are usually motivated to sell at the beginning and at the end of the day.

If prices aren't posted, assume there's a double standard: one price for locals and one for you. So it's to your benefit to find out what the locals pay.

Never fall for the age old bargaining scam of offering a fair price for the item, even if the price is very low.  Once you have spoken, you have lost your advantage because you are now trying to buy from vendors rather than having to sell to you.

Avoid making purchases at congested tourist sites.  Vendors at these type of locations are less inclined to give you a good deal.

If you are interested in buying several of the same item, buy the first one at the best price you can get.  Find another shop with the same item, inspect the quality carefully and let it be known that you purchased the same item from another vendor.  The second vendor will  ask you how much you paid and may quote a lower price because he does not expect you to buy.  The other way to bargain with the second shop keeper is to offer a price 20% to 30% below the price you paid and see what happens.

Involve a supposedly antagonistic partner that tells you in front of the shopkeeper that he or she does not want to you buy the item, or that you don't have enough money for it.  At that point you offer less than what is asked, but within reason.  You might win.

Presenting the correct amount you are offering in cash at the end of the bargaining deal might be your last ditch effort before you walk out of the store.  If you are close, you probably have a good chance if it's at the end of the day.

Know that the prices of items you may want may drop at the end of the day, especially when merchants are starting to pack up. Consider coming back at closing time to snap up the item at the price you want - as long as it is within reason.