How to negotiate with an egyptian?

Egypt’s culture expects its members to have a sense of belonging to and conforming with their group. At the same time, it leaves room for individual preferences. Building lasting and trusting personal relationships is critically important to most Egyptians, who often expect to establish strong bonds prior to closing any deals. People in this country may do business only with those they know and like. Establishing productive business cooperation requires a long-term perspective and commitment. Social interactions may be just as important as business contacts, if not more. Consequently, proceed with serious business discussions only after your counterparts have become very comfortable with you. This is usually a slow process.

Business relationships in this country exist between people, not necessarily between companies. Even when you have won your local business partners’ friendship and trust, they will not necessarily trust others from your company. That makes it very important to keep company interfaces unchanged. Changing a key contact may require the relationship building process to start over. Worst case, such a change may bring negotiations to a complete halt.

Establishing relationships with others in Egypt can create powerful networks, and whom you know may determine whether people want to get to know you. Maintaining cordial relations is crucial. Third party introductions can be very helpful as a starting point to building a trusting relationship with a potential partner.

‘Saving face’ is very essential. Causing embarrassment to another person may cause a loss of face for all parties involved and can be disastrous for business negotiations. The importance of diplomatic restraint and tact cannot be overestimated. Keep your cool and never show openly that you are upset. It may be better to accept a compromise, even an unfavorable one, if the alternative means that your counterpart loses face.

In Egyptian business culture, the respect a person enjoys depends primarily on his or her age, rank, and status. It is crucial to treat elderly people with the greatest respect. Showing status is important since people will take you more seriously. Carefully select your hotel and transportation. Use the services of others, such as a porter, to avoid being viewed as a low-ranking intermediary.

The official language of Egypt is Arabic . Most businesspeople speak at least some English . Since you are required to have a local agent when doing business in this country, select someone who can also assist with translations. When communicating in English, speak in short, simple sentences and avoid using jargon and slang. Never use a language to communicate within your team that your Egyptian counterparts cannot understand, since they will likely take this very negatively.

There are many tourists who are not used to the concept of negotiating deals or haggling over prices, but these skills are part of the fun of shopping in Egypt and may be useful in other places too.

Haggling is an art. But, it should only be used in the right place. In some exclusive shops, supermarkets, coffee shops, restaurants, clubs and public transport there is usually no haggling. Haggling is acceptable in the old souks where you can buy anything from gold bracelets to replica gifts and Egyptian dresses. Haggling in these outlets is permitted, sometimes expected, as a way of communication and exchanging information.

There is an art to haggling, and many ways to make sure you don't pay over the odds. You also want to make sure that you offer a fair and adequate price for the gifts you buy. If you are not sure what to do, try to enlist some local help. Also do some homework to gain a little inside knowledge of the value of what you intend to buy and the limit of what you are prepared to pay. Always look at the price tag as the recommended price, which is negotiable. If you pay with cash, not a credit card, you should have more leverage for getting a good discount. Shops prefer cash.

Haggling is effective when buying high value items, such as gold and jewelry, but with low value items it is not worthwhile the time and effort. Paying the full price for such small items is more or less a gesture of support for the small trader.

If you want to buy a bargain be prepared to spend some time shopping around and have a rough idea what the item is worth. Ask some local friends (or even your tour guide) how much would they pay for such an item, and then allow a fraction above that as a margin for being "out of town". Most expatriate Egyptians follow these guidelines when returning home for visits or holiday. They do not mind sometimes paying a little over the odds, knowing they still have a bargain in terms of their own purchasing power.

When I return to Egypt, I do not apply any haggling rules and choose instead to chat with shopkeepers about their trade and the market conditions. Sometimes I am surprised to be offered a discount without even asking for one. Ideally you should take an Egyptian friend shopping with you, but since that is not always feasible, do some homework. Shop around. If you have time to spare, do not buy at the first shop; you can always come back. Shopkeepers will try to persuade you that they offer you the best value, but will not be offended when you say you want to look around and may come back. Timing is also important. You stand a better chance for getting a bargain late at night than earlier in the day.

When buying gold settle the price per gram not the price per item. For other valuables you can always say a friend bought a similar item, for less. Negotiate only with those who can make instant decisions. If you are not sure, ask to see the shop manager or owner.

Haggling is easier if you are buying more than one item; a discount is expected for buying in bulk. So, it makes sense to buy as a group of three of four, together. Also, if you can point any defect in the goods, such as poor finishing on a dress, or a fading color somewhere, you should be able to get some money off the asking price.

If you are an independent traveler, or on a budget, you can apply the same negotiating principles to booking hotel rooms, and other services. Sometimes it is easier to discuss prices over the telephone than face to face. You can even offer your price before coming to Egypt by telephone or by e-mail.

There are places where haggling is not the norm, and these include supermarket chains, where the stock is computerized, fruit and vegetable markets where the profits are so marginal, they are not worth discounting.

Prices, however, have to be put in perspective. Egypt is still fairly cheap, at least for tourists who exchange US dollars. The purchasing power of the US dollar in Egypt is almost double that of the dollar in most parts of the US. To make your life simple, you can draw a line about what is not worth haggling about. Items below LE 40 (roughly $ 10) are not usually worth the effort or the waste of precious holiday time. If you still think an item is overpriced, then offer your own price and walk away. This will put the vendor in a yes or no situation.

The language could be a handicap in dealing with some traders in Egypt, although increasing number know at least one foreign language in addition to Arabic. But, do not feel at a disadvantage. In these situations, the phrase books and the time and effort in learning some basic Arabic expressions become invaluable. You will be surprised how far you can negotiate with a limited vocabulary. Here is an example:

So, here you are. The trader can agree to sell for LE30, or you can find another LE10 in your pocket and clinch the deal. In most cases though, the LE10 is worth more to the small Egyptian trader, than it is to the buyer. I know that most tourists to Egypt are not rich, but in relative terms they are still much better off than the average Egyptian trader. That of course excludes the mega businessmen of the global era.

So, when it comes to shopping, know what you want, and negotiate hard to get it for the right price. Otherwise, don't waste your time, haggling over trivia or buying stuff you do not need. As most travelers know, the best bargains of holiday time often become clutter around the house, and end up in yard sales. So, after all the haggling, it may be worth paying a little over the odds to get what you really want.

There is no golden rule for haggling except offering what you think is a fair price. With a new exchange rate of more than LE 4.00 to the US dollar, Egypt is cheaper now than at any time in the past; the average tourist can afford to be a little generous, and still save money.

• Rule #1 is to smile and have fun with it!
• Don't be thrown off by how enthusiastic a shopkeeper comes off.
• Don't bargain unless you're actually interested in buying.
• If you want to get off on the right foot, dress with respect for the local culture.

Egyptians can be tough negotiators. Avoid using high-pressure tactics but rather always include research and documentation to support your claims. Decisions are reached after lengthy deliberation. The highest-ranking person makes decisions, often after obtaining group consensus.