Negotiating pricing is a good way to save money, especially when traveling. Some things, like airfare and rental car fees, are often non-negotiable. However, souvenirs and other local crafts are usually fair game for bartering to get the best price. Some hotels even are willing to negotiate, though usually the large chain hotels do not allow it. Negotiating for better prices is an acquired skill; once you get comfortable with the process, it will come easier for you.
Decide in your head what you think the item is worth, and how much you are willing to pay for something.
Make an offer that is below what you think the item is worth and how much you are willing to pay. For example, if you see someone selling a piece of art for $100, and you are comfortable paying $75 for the item, offer $50. The person may laugh at you, but do not back down; this is likely a technique to intimidate you into paying more money.
Point out flaws in the item to give you more negotiating power. If it is not a brand new item, indicate that you cannot pay full price for something that is not new. Point out any damage, however minimal. If the item you are negotiating is not tangible, such as a hotel room, point out other similar items that are priced lower. Say something to the effect of "Well, if you are not willing to work with me on a better price, I will just go somewhere else."
Consider the counter-offer. For example, if an art piece was originally selling for $100, and you offered $50, the seller will likely come back with a counter offer, around $80 or $90. If you are willing to pay that much, then agree. However, if that is still too high, make another counter offer, and indicate that this is the absolute highest price you are willing to pay. For example, say "I will give you $70, but not more than that. $70 is already more than I want to spend." The seller may make another counter offer, for $75 or $80. If you are willing to pay that much, agree to the deal. If not, hold your ground until the seller agrees on $70 or until neither of you are willing to negotiate anymore.
Walk away if the price you want is not met. Often, someone will come after you and agree to your final offer, because they will not make any money if they do not sell the item. People would usually rather sell the item for a small profit than not sell it at all.
