That's exactly how haggling at bazaars work. The prices are set ridiculously high, because of the haggling culture, sellers expect customers to haggle. And they won't turn away anyone who's too shy or rich to haggle.
That is to say - all the more reason to haggle. Or negotiate salary prices. What this experience says is that lowballs are the norm.
This reminds me on my experience selling things on local version of eBay. No matter how good of a price it was for a used item, people would still try to lower it... until I just started setting higher prices from the get go and then selling for more after some arbitrary small drop in price after "negotiating". Wierd how people work.