Getting better prices from merchants comes down to managing a few key things, and reputation is definitely something you'll want to focus on first. Local traders remember how you treat them and what you do around town, so keeping your nose clean and helping with local problems will get you those sweet discounts pretty quick. The way you present yourself matters too since your charisma comes from wearing clean fancy clothes instead of running around in bloody armor.

Speech skill ties everything together nicely and you'll definitely want to practice haggling whenever you can to level it up. Merchants have different patience levels though, so watch their mood when negotiating or they might refuse to trade with you for a while. Something interesting about trading is that noble outfits actually work better than armor for getting good prices, and keeping Henry cleaned up makes a real difference too.

Just remember to build your standing by helping locals with their problems, avoid any shifty business around the shops, and dress to impress when you're trying to strike a deal. Once you've got decent speech levels and good reputation the prices start getting much more reasonable.