Bargaining is expected at any street or market purchase and often in small stores. You should be friendly and polite and remember that the seller probably makes much less money than you do. However, the price will be raised substantially if you are clearly a foreigner. It is best to ask the price and then suggest a price that often is less than half of what was requested.
When negotiating at the market or street, it's best to be firm and be willing to walk away – you might be followed and offered a better price. Enjoy the bargaining process, the fun is in the conversation.