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Bargain or not

Do you barter with people? When I visited Nogales, Mexico, the advice I received from others who had visited there before me was that I should never pay full price for what a vendor is asking when I wanted to purchase something. I was to 'barter with them' until I felt a fair price was met. For example, I wanted this blanket marked at however many Pesos and I was supposed to say what I was willing to pay for it. Usually the vendor would meet my request with great resistance and shake his head vigorously that he was opposed to such an offer. Part of the 'bartering' was that I was to walk away as though I were no longer interested. If you have ever done this, you know they follow you asking you offering you some reduced rate, but still not what you desired to pay. If all goes well, you will 'wear them down' to a reasonable price you both can agree upon. In turn, you walk home with the blanket, feeling very good about the 'bargain' you just found. Truth be...