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It sounds like you are well-prepared already. Keep in mind that goods are priced with tourists in mind. Some items there are so reasonable I didn't even try to get a better price. What you will see marketed as "alpaca" blankets might be anywhere from 10% - 50% alpaca. That does not take away from their beauty, warmth or quality. As our guide told us, "When you hear baby alpaca, think maybe alpaca." I would plan on getting one of those for around $25. Jewelry sells anywhere from around $8 for a small or not fancy piece, up to around $35 for a necklace with several strands of beads. Jewelry with stones will cost more. Another thing to remember is that a lot of what you see in Otavalo is only found in Ecuador or Peru, so if you like something, don't count on being able to find it elsewhere. Otavalo is best on the weekend if you are a serious shopper. If, on the other hand, you get overwhelmed in a market atmosphere (as I do) you are better off going during the week, when fewer vendors are present. Finally, make sure you see the artisan's market in the Mariscal district if you are going to be in Quito anyway. I like the clothing there better than what I saw at Otavalo. I got three gorgeous peasant blouses there for around $18 each. (Oh yeah, prices come down if you are buying more than one.) It's a smaller market, but easier to navigate. I have quite a few Ecuador reviews here on TA which I hope you will find helpful (and please give me a helpful vote if you do.) Let me know if you need anything else, and have a WONDERFUL time there. It is a beautiful country with beautiful people.

And Otavalo is a really nice town!

We went on a weekday and there were no animals.

Very much the same as some of above responses. The biggest market day is Saturday ( heaving..and has the rather unplasant animal market). On Wednesday it is slightly quieter ( but by no means quiet). Start by looking around to orientate yourselves and ask some prices to have an idea of what to expect. Sellers generally pitch high to tourists ( helps if you speak some Spanish). Generally it is best to counter at ca. 50% lower than their opening price and don't look over keen. Putting a number of items together from same stall will enable you to get a "bundle price" but make sure to ask for individual price of each item before "opening negotiations" over bundle price. If you don't reach the figure you have in mind..walk away..they will generally follow and lower price levels. Usuallly they have bags but taking 1 or 2 of your own fold up bags would be a good idea.

Sorry it’s taken so long, I don’t get on trip advisor very often. The biggest day with all the vendors is Saturday but you can go anytime and still get a great selection of local crafts. They have good prices but do negotiate. I recommend going to Octavia for the shopping also there is a beautiful waterfall about 15 minutes from town. We stayed at B & B next to the waterfall and it was a very good experience.

I think that any time you go you will find deals just different types of deals. I was very taken back by what they had.