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Thais, Money and Shopping – Part 2
In part one of this article I suggested that Thai people in general have a much more “live for the moment” mentality compared with the Westerner who tends to take a longer term view of savings and finance. I proposed that seasonal conditions might have something to do with this as the threat of starvation in winter months required storage and conservation in more temperate climates. It is my belief that this leads to a “take the money and run” mentality here in South East Asia.
When reflecting on the shopping experience in Thailand it is important to recognize not just the shopper’s perspective but the seller’s perspective also. Tourists are here for a brief time and they have been coming for years and they will probably keep on coming. The idea of cultivating a philosophy of nurturing repeat business makes little sense to a seller in a market. They want to get the best out of any transaction regardless of whether you view it as fair or not, as most transactions are a one-off deal. This concept combined with the Thai perception of foreigners as being comparatively wealthy is fundamental to understanding shopping in Thailand. Remember that it would be incredibly unusual for any street or market vendor to have traveled overseas. The only foreigners they have seen are in Thailand and they all have one thing in common. They have plenty of money. It is not surprising that Thais think that all foreigners (or farang) are wealthy because this is all they have ever witnessed and experienced. Foreigners come to Thailand for a vacation and compared with the locals, spend ridiculous amounts of money on hotels, transport, shopping, and nightlife. Is it any wonder that they think you won’t care about spending $20 on something that is worth half of that?
Mostly tourists aren’t so annoyed at paying a higher price than they could but at the principle of being ripped off. For a while I just couldn’t get my head around it. It annoyed me. What I wanted was the comfort of checking a price tag and making my own decision as to whether or not it was a fair price. In Thailand this (from a Western perspective) is denied me. Aside from ‘comfort’ I now realize that there is no real difference in the outcome of my decision to purchase, but the difference is in the decision-making process. In the West the prices are negotiated and set by people further up the food chain who are safely removed from the sales floor. The price tag acts as a buffer between sales person and buyer. There is no room for negotiation. The price is set. Buy it at that price or don’t buy it. Simple. I can guarantee you that in the West you are being “ripped-off” just as much or even more than you ever could in Thailand. The difference between cost and price is often quite a chasm as the profits are sucked away by layers of middlemen. In Thailand you are dealing directly with the sole middleman and sometimes even with the actual source of production. The price is negotiable because any reduction in price comes directly out of the vendors’ pocket. Prices are in a state of constant flux in every moment of every transaction as the vendors quickly weigh up what they are prepared to accept as profit.
You can get amazing shopping deals here in Thailand. Bargains galore. I got to a point where I would only ever buy clothes when on holiday in Thailand because I gained a much clearer idea of what the cost of a garment actually was before a fancy label got plastered on, it got shipped, and layers of other costs accumulated as well as a healthy profit margin. Why would I pay $200 for the same pair of jeans that would cost me $50 in Thailand. Why would I pay $50 for a t-shirt when I could pay $6 for the exact same one in Thailand. Once you get over the ‘discomfort’ of bargaining then you can save a lot of money. The Thais understand this and use it to their advantage. They know that a $5 garment costs several times more than you would pay in your own country. They can sell it for $8 and get a small profit, or they can try to sell it for $20 and make an even bigger one. What would you do if you were them?
The best approach to avoid paying for massively over-priced goods is to take the plunge and throw yourself into the bargaining game. Okay, so how does the game work? The Thai retailer will start their price at the highest point they think they can sell the product, often well over their own acceptable profit margin. If you accept that price without negotiation it is, as far as they are concerned, fair enough. Your loss, their gain. The price of anything in Thailand is what the buyer is prepared to pay. If someone makes you an offer, make a counter-offer and make it well below the original. If the vendor seems outraged, it is only an act. They are playing the game. They will offer something a little more reasonable than their first offer and so the game continues until both buyer and seller are happy.
Remember, you as the buyer have the ultimate power in the negotiation. You can’t be forced to buy something. If you can’t agree to a price then simply smile and walk away. You can also use this as a tactic and you’ll be amazed at how effective it can be in underlining your final offer. You will often be called back as the seller sees their sale going down the drain. If they don’t call you back, then you probably were offering a price that was, in fact, too low. That’s good news for you too. You now know what an unacceptable price is and you can enter another negotiation for the same product with a different vendor armed with that knowledge. If you really want to get rock-bottom prices, then it is a good idea to do some research on by entering a few negotiations with no intention of actually buying. You’ll get a good idea of what a “fair price” to both parties actually is and you can go from there. Too many people have absolutely no idea what the product is actually worth because their views have been warped by their only experience of pricing back in their home country.
It also must be remembered that sometimes you can take the game too far and haggling over a few baht becomes quite ridiculous and even insulting. But as with everything in Thailand it is “up to you.” It is your money and your shopping experience. But it is always less stressful when negotiations are conducted with respect. Try not to get angry. Nothing is personal. It is just business. The best approach is to smile a lot and don’t seem too intent on purchasing any one thing. Wander around, ask for prices of different products and return to what you want. If you appear too intent on purchasing something then you are weakening your own bargaining position.
Shopping goes hand in hand with the Thailand experience and most people go home with suitcases full of great stuff for a fraction of the cost back home. Just remember to be patient, smile, and always bear in mind that bargaining is just a game.
by Bryan Daysh, a freelance writer living in Thailand
Read more articles in our ongoing education series:
Smiling Will Make Your Thailand Holiday
Giving, Maintaining and Saving Face in The Land of Smiles – Part 1
Giving, Maintaining and Saving Face in The Land of Smiles – Part 2
Thais, Money & Shopping, Part 1
Thais, Money & Shopping, Part 2
What’s with the Wai?
The Thais Love Their King
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