Ah, haggling: as old as human civilization itself, it can cause people from the US or many other western countries to break out in a cold sweat.  I believe the reasons are twofold: 

1) It’s simply not something we typically do.  You walk into Walmart, there’s the price.  That’s what something costs, and that’s that.

2) It’s considered rude.

But this isn’t the US, and Khan el-Khalili in Cairo certainly isn’t Walmart.  If you want something, you’re going to have to haggle for it.  Assuming, that is, unless part of your vacation plans involve getting ripped off.

Oh, and because I had the same question before going: Yes, Khan el-Khalili is safe, at least in my experience. Like most every other big market you’ll find in Egypt, it’s full of people. 

Of course, there are tour companies who will try to convince you that you need a guide, but there’s lots of families about, and plenty of other tourists just like you. Like I always say, just do what makes you feel comfortable. If you want a guide, don’t be embarrassed about it. Enjoying yourself is the most important thing. Now, if you want to learn how to haggle in Egypt in ways that would impress even the grumpiest shopowners, let’s get started…

Assault on the senses

Take a look at the photo up above.  It looks nice, right?  I took that at Khan el-Khalili market in Cairo, and nearly everything is photogenic there.  If you don’t believe me, look at some of the other photos on this page, or just run your own Google Images search.  Yes, it really does look like that.

But what the photos don’t show you is that your experience is very much like running the gauntlet.  No matter how inconspicuous you try to look, no matter how much you avert your eyes, the shop owners are expert marksmen. 

They’re professionals.  They’re trained in this.  They were born to it.  They see you coming, and they know you’re a tourist.

“Come in, come in, no hassle.”  “Beautiful scarves, come take a look!”  “My friend, my friend, where you from?”

That last one is my favorite, because they’re already sizing you up.  You tell them where you’re from, and they’re building out the mental image of you they’ve already started to form based on your appearance and your clothes: How much money you might have, and how gullible you might be.

You hate everything — or pretend to, at least

The most vital part of haggling is the level of interest — your interest in buying, and the shop owner’s interest in selling.  This is the most difficult aspect for many to get past, because it’s in our nature to be polite and complimentary.  You’re supposed to show interest, right?

“Ooh, how nice!  Yes, the artwork on this dish really is exquisite!  I’m so impressed!”

Well, that isn’t the case here.  Acting interested signals to the owner that he has the upper hand.  He’ll think you don’t want to walk away empty-handed, and there’s a good chance he’ll negotiate harder than he would if you’d acted disinterested.  Haggling is largely about perceptions, after all.

An important thing to keep in mind is that nearly everything you see can be purchased somewhere else.  Whether it’s a cheap plastic replica of the Bust of Nefertiti or a finely-painted piece of glassware, you’re almost always going to be able to find the same thing at another shop. 

If you want to walk away, then walk away.  Unless you desperately want something and don’t believe you can find it elsewhere, then don’t relinquish the upper hand.

How to haggle in Egypt?  Start with your own number

So you’ve gone inside someone’s shop.  First things first: Just because you’ve gone inside doesn’t mean you have to buy anything.  It’s totally fine to walk away.  The only pressure here is the pressure in your mind.

You’ve spotted something you like.  You scrunch up your nose a bit, point to it, and ask how much.  Whatever the owner tells you, that is not the actual price. 

So where do you go from here?  In all likelihood, you’re not going to know how much this item should cost you.  I find that a good rule of thumb is that you’re going to want to arrive at a price that’s roughly half of what the owner first pitched to you.

It’ll go something like this: First, he’ll probably ask if you’re negotiating in dollars or Egyptian Pounds.  You’re going to tell him it’ll be in Egyptian Pounds.  He’ll tell you it costs 200 (roughly $13 or so). 

You’ll laugh and shake your head a bit.  No way!  That’s way too high.  You’ll counter with something much lower — say, 40 Pounds. 

He’ll say “My friend, my friend, this is already a very special price for you, very special, I can only let this go for 150.”

You’ll tell him that’s still much too high, you saw this same item at another shop, and you’ll just go over there. 

Maybe you’ll waffle about whether or not you have room in your luggage. 

Maybe you’ll point out something you don’t like about it, like the color or a little imperfection.  You tell him 80 pounds, and you simply can’t go any higher.

Now he’ll say just because he likes you so much, he can drop his price to 130, but that’s his final price, can’t you just pay him 130?  He’s already going to take a loss on this, he just wants to free up space on his shelves!  He’s offering you a good deal because you’re from ____ , and he loves people from ____!

Remember, your goal here is 100 pounds.  So you’ll say okay, you can bring up your price just a little bit to 100, but that’s your final price.  He might drop to 120, or he might hold firm at 130.

We’ve gotten down to where the variation in price is very small.  Let’s say he’s insistent on 130, and repeats that’s his final price.  You can opt to make a deal…or you can walk away.

If he lets you go, then 130 really was his final price.  Like I said earlier, you can probably find the same thing somewhere else — or you can just go back and tell him “Okay, 130.” 

If 130 really wasn’t his final price, he’ll come after you.  He may even follow you for a block or two, incrementally lowering his price until you decide to come back.

Haggling isn’t rude

There’s a good chance the description I just gave caused you to feel like it’s all a bit much — too argumentative, too pushy, too rude.

None of that is true. 

Haggling is an art form.  It’s very much part of the culture in Egypt.  Shop owners have honed their haggling skills, and they’re proud of them.  They’ve been brought up to negotiate, and not a single one of them is going to think you’re a cheapskate just because you pushed for a lower price. 

Although it may feel brash and obnoxious, this is simply the way deals are made in these markets. 

So, don‘t think of it as a hurdle you have to endure.  Think of it as a fun experience, where you get to immerse yourself in a bit of the local culture.  It’s not disrespectful in the least.  It’s expected of you, so keep your head high and dive right in.

If you’re a strong negotiator, odds are that the shop owner will be having a bit of fun too.  You can each walk away from the transaction with a bit of respect for the other.

Bonus tips on how to haggle in Egypt

I’d like to wrap up this article by throwing in a few other tips that didn’t quite necessitate their own sections:

• Don’t let anyone decide they want to “Show you around” the market. 

There’s a chance you may run into a shop employee or just a random person who says he wants to help you get around. 

 If you think you need help, then go ahead and accept (but you really don’t).  He’ll want you to pay him before you leave, and the cost of whatever you’re getting will be elevated because he’s going to get a commission.  This means he won’t really be helping you negotiate, because he’ll want you to be paying more. The more you pay, the bigger his cut.

If he won’t go away after you tell him you don’t need help, there’s an easy solution.  Just tell a shop owner that you won’t be buying anything as long as your “helper” is around.  I can pretty much guarantee the owner will get rid of him for you.  It certainly worked for me, as an owner shouted at a guy in Arabic and he scurried off.  Mind you, none of this is dangerous…just a bit irritating.

• The same tips hold true everywhere. 

While the pictures I’ve posted here are all from Khan el-Khalili market in Cairo, haggling works the same way in other markets.  Khan el-Khalili  is the biggest I came across, but there are also big ones in Luxor and Aswan.  The locals call the markets “souqs.” At least from my perspective, the one in Luxor had the coolest souvenirs. 

But don’t sleep on Khan el-Khalili.  Its environment is totally unique and it’s very close to the historic Muizz Street.  This is where many well-preserved Islamic buildings are located (pictured above).  You’ll also find little souvenir shops at many tourist sites like Abu Simbel, which typically have at least a few things you can’t find anywhere else.

• Some shops will tell you they’re “fixed price.” 

This means they don’t haggle, and the price they give you is the actual price.  If you’re absolutely opposed to haggling, this can be a good option — but you’ll tend to find them on streets, not in markets. 

Also, it’s probably not worth trying to haggle for items like snacks or bottled water.  Yeah, you’re almost certainly getting charged the “tourist price,” but I haven’t found negotiating for these things to be worth it.

• Most places will not take credit cards. 

You’ll want to make sure you have some cash on you, although ATM’s are plentiful in Egypt and someone will always be willing to point you in the direction of one.

• Don’t haggle too hard. 

Remember, these people are just trying to make a living.  Is it really worth pressing, just to save a couple of extra dollars?  Put forth the effort to negotiate, enjoy the experience, and push yourself out of your comfort zone — but know when it’s time to call it quits.

Note: Everything I say here is my own personal opinion, and may not work best for everyone. I’m far from an expert, so please just do whatever is best for you, and be sure to visit the TripAdvisor Forums to ask questions and do some more research!