Friday, June 19, 2009

Haggling and the Profit Margin

I have a new policy when it comes to haggling. Basically, it boils down to not being as much of a tightwad. My old goal used to be to get the best price possible; now, I want both parties to leave with a smile (or at least contentment) on their faces.

I came to this conclusion after talking with lots of different individuals, such as store owners, fruit sellers, taxi drivers, tour guides, and the folks running the NGO I'm volunteering with right now. The one recurring theme is that at this moment in time, during the low tourist season during an economic downturn, profit margins are incredibly thin, if not nonexistent. People aren't turning down any work, even if they make just a dollar a day. At least it's enough to buy a bowl of noodles and a bunch of bananas.

So, do I really need to pay 10 baht ( 30 cents) less to a tuk-tuk driver to take me to the airport, taking advantage of the moment and their precarious circumstances? No, not really. I can afford it, even though I pay the tourist price rather than Thai price. This concept is making more sense to me now -- I'm not Thai. I'm a tourist. I can afford far more than the average Thai person, and now I'm beginning to feel embarassed when I see other tourists haggling like madmen over 5 or 10 baht, especially when they'll drop 150 baht on a Western breakfast and a mocha latte without blinking an eye. (Thai breaffast = 20-25 baht.)

So, I'll haggle enough to ensure that I'm not getting completely ripped off (and by now, I know what things should cost), and then stop there. Who knows, maybe it'll leave some good karma behind me when I go.

btj

3 comments:

  1. Hopefully your sister will read this post :D

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  2. Huh (in response to Pete).

    I have to say a very embarrassing moment was in Africa when I almost haggled a cab driver to death over what was about 25 cents U.S. Pete, who hates any kind of haggling, was mortified. So I've come to the same realization as this post... for the amount of money, I don't mind getting "ripped off". It means way more to the other people than to me, so I don't mind it as much as I used to.

    Having said this, I still think it's okay to haggle. It's not like the salespeople are displaying their prices so that everyone has to pay the same price, so I think the price is fair game for haggling. If they displayed a sales price so that everyone had to pay the same amount, I would pay it.

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  3. Amen. Haggle enough so that you're not being screwed, then stop there. :)

    (I understand the haggling over 25 cents -- I've done the same thing myself!)

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