Shopping in Bali is not simply walking into a shop, picking something from a shelf and paying for it. Shopping is an art. In every traditional market and art shop around Bali bargaining is a must.
This traditional way makes shopping in Bali a fun time, where you can feel the warmth of human value in every transaction. Before you begin your shopping tour on this island, please obtain cash because most places do not accept credit cards.
Even if you are not a seasoned negotiator be prepared to enjoy the bargaining process. It is a fun activity and be patient and you will get the 'best (and maybe even local) price'. In some places you can bargain until you get 50% off. Always go in at less than a third of the price (maybe even a quarter) and bargaining and even walk away, until you get the price you want. Then make sure you pay the right money.
I remember seeing a man negotiating for an umbrella on Kuta beach. He did well in the bargaining process and got the price to Rp5,000 and paid up with a Rp50,000 note. But he went away happy believing he had a bargain. Isn't that the most important part of bargaining - to be happy with your purchase. So where can you go to spend your Rupiah?