If you are going to visit Morocco, I recommend Fez to buy souvenirs. Lately some shops have fixed prices, but most of the times you will have to negotiate prices. Dealing with local vendors takes some practice.
While bargaining in Marrakech and other cities in Morocco was a tiring experience, in Fez, it was almost always a pleasant one. I found sellers in Fez very nice and friendly. Most of them speak at least a couple of foreign languages. If you have problems understanding the seller, a fellow seller from a neighboring shop may drop in and lend a hand to his friend. English, French and Spanish speaking tourists will have no language barrier. German, Dutch and Japanese travelers may find some one who can speak some words in these languages.
There are two rules you never should forget while negotiating. First, a smile is your most convincing argument; and second, once you and the seller agree on a price you can't keep negotiating. A deal is a deal, you are obliged to buy.