Barter, barter, and barter some more!!

Upon arrival to Peru, if you are a caucasian, you WILL stand out. Peruvians know you are a foreigner. Therefore, the prices may not always be fair (completely understandable, I would do the same in their position). That's where bartering comes in SO handy!! Bargain for the price of your taxi, for your lunch, for your souveniers, even down to packaged deals (such as tours, etc). Not only do you save money and experience part of the culture, you get that wonderful feeling of victory!! For example, I got a great Alpaca sweater (probably not but whatever) that they tried to charge 30 US dollars for...and at the end of fierce bargaining, I got it down to 6.

Even on your meals, just say...Hmm...that's a bit expensive...and they'll readily drop the price or add on more items. With taxis, if one won't give you the price you want, let them drive away. Chances are, the next driver will be happy for your patronage.