The booths in Beijing's alleys are in an interesting position. Lots of sellers packed into a small area, little separating their wares from the competitor's, and everyone's pretty much selling the same thing. As a result, these folk are assertive yet willing to negotiate.
Here's the easiest way to do it. Find something you might be interested in buying. Look at it until the seller notices. Once you get the price, indicate that you aren't really interested and turn to leave. If the seller moves to stop you, then you know you're in a good bargaining position. You can suggest a price, but you may not have to - some of them will drop their own prices after a while.
Here's my own back alley haul:
Asked price: 455 RMB. Amount paid: 300 RMB, for a savings of about 35%. Not bad, eh?
Even if you don't plan on hitting the small markets, picking up these skills is a good way to avoid getting fleeced. If you look like you know what you're doing, people will assume that you really do. Sound advice for life.

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