There is an abundance of market traders in Makkah. They are everywhere! Remember you must bargain with all traders whether in large stores or small stalls. They usually add about 20% to 35% on to their prices. If you look or act European or American dont be surprised if you start haggling from 200 Riyals when in fact the product is locally sold for 50-100 Riyals!
The best things to buy from market traders, especailly near the Harem, are 1) Miswak - Very fresh and bendy. 2) Roseary Beads 3) Prayer Hats 4) Watches 5) Perfume 6) Woven prayer Mats 7) Flip Flops
Items that are around 7 Riyals - bargain down to 5 or 6. Items that are 50 Riyals bargain down to 40! If you spend enough time you will usually get to see locals paying the correct price so use that as a base line.