Good bargaining skills are a must for any traveller to India, and Delhi has some great places to practice. Remember that some places have fixed prices, this will usually be posted somewhere in the store.
Sometimes a merchant may try to trick you and say "fixed price", simply turn around and walk out. If he's lying, he'll stop you and offer "special price". In most markets like Jaanphat, and Dilli Hatt you can get great deals. A good method is to offer half of what they want and then from there work your way up slowly if you need to.
Updates
In Karol Bagh and Janpath, they are aware that you are going to half the rate hence at times, they tell a rate that is 4X. I would start with a 1/4 or 1/3 rate instead of 1/2.
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