Friday, December 7, 2007

The Gringo Price: Right or Wrong?

So I’ve been wrestling with the whole idea of the exorbitant prices that gringos or foreigners get charged in any country where they’re visiting as a tourist, sometimes successfully, other times unsuccessfully. I forget what it’s called in marketing when they price the same thing at different points…point pricing? Or something like that when they psychologically analyze the customer and price accordingly. Nobody likes getting ripped off, but is it “right” when the person that you’re giving the extra money to could put it to better use than you could?

I’ve seen several instances of this in my time here in Bolivia so far…from the time the person charged me 8 bs for a papaya that costs 5 bs, to the time that the taxi driver tried to charge Tammy twice the fare for each of us going from Marquina to Quillacollo but she indignantly refused since we knew the fare was only 1 bs, not 2 bs. When you think about it, the whole idea is kind of silly…1 boliviano is equal to $0.13 as of now…when I was in the U.S. did I care if anything cost $0.13 more? I’ve seen other instances where the grievance was a bit more significant though, from when Pat got ripped off on a shoeshine when the little kid wouldn’t stop harassing her (she paid 20 bs…it’s supposed to cost 1 or 2 bs)…although this instance we still laugh about to this day and probably always will. Then I got ripped off on a taxi in La Paz where I paid 7 bs not really thinking about it…then realizing after I got out that it only should have cost 5 bs max. Sure, $0.13 isn’t much, but it adds up when you can take a whole other trufi ride with it or buy some bread or eggs. Especially since we’re living in Bolivia…on a Bolivian salary as a volunteer. And then Pat and my rent…I’m kind of annoyed with the whole situation right now paying 350 bs a month when I’ve heard from several other volunteers that I should be paying 200 bs max, no matter how nice the place is (which my place clearly isn’t that posh with it’s aluminum roof and bug problems…newest enemy is the moth, there were like 20 in my house last night for some reason until I duct taped a gap near the window). The difference in USD is about $15. My rent right now is equivalent to $45/month. Now in the U.S. that’s just a drop in the bucket…I was shelling out big money to live in Stamford in my last place…$15 was just another dinner out on the town in Stamford, not to be cared about and not to be obsessed over. But now $15 is a 5% of my monthly salary. Money I could be saving up for a trip, for food, for something so I don’t have to dip into my U.S. bank account to cover it, after all, I’m supposed to be able to live on my PC stipend.

This topic also comes up in what’s happening in auto dealerships in the U.S. now…some dealers are trying to move towards fixed pricing because they’re finding in research that people (especially women who comprise over 50% of car purchases nowadays and influence much more than that) prefer fixed prices. For example, Scion already does fixed pricing and most of their customers just go in knowing exactly what car with what features they want and how much it’s going to cost. Apparently dealers are hesitant to move to fixed pricing if their competitors are still negotiating prices because fixed prices are higher and can’t compete…but then again the argument is that fixed pricing saves dealerships money because they don’t need to staff so many managers at all times that can approve prices to sell the cars at. And the research shows that although at fixed prices a dealership will currently sell fewer cars, it also shows that the people buying at fixed prices are much more likely to be repeat customers (for services such as oil changes along with future car purchases). People like knowing what they’re going to get and they appreciate knowing that they’re being treated the same as the next person to walk into the door. Fair play is underrated…anyways, I digress.

I hate getting ripped off (it’s part of the anal retentive part of my personality), but I’m struggling with the fact that I also tend to use the utilitarian argument that a dollar here for someone that doesn’t have a backup bank account means a lot more to them than it does to me. Is it fair to be ripping me off just because I feel the impact less and the money helps them more? The utilitarian argument is one of my reasons for being here…as a volunteer I should be able to do more good in this world in my two years than two years spent toiling away and punching buttons as an operations analyst. But if that’s my train of thought, I shouldn’t have a problem with paying a little more for every single thing than a Bolivian that has fewer resources at their disposal right? This brings me back to the philosophy of Peter Singer, crazed minimalist vegan philanthropist philosopher to the extreme, where he basically lives at the lowest level possible to do his part in equalizing the playing field and putting each of his dollars to the best use possible in this world. After reading a few of his books, he makes sense a lot of the time…and that’s the scary part. If you think it makes sense, why aren’t you living like that as well? I guess I’m not ready to sacrifice to that degree…yes, I am materialistic and like my sushi dinners and pillowtop mattresses and sure, I feel guilty, but when will it be enough to act fully on it?

Sometimes it gets me really mad that I am getting ripped off and I’m like, wtf (seriously wtf!) but then the next moment I’ll tell myself to calm down that it’s just part of life and you deal with it and move on. I guess it helps that I don’t hold grudges for a long time and have a short memory…just like my mom who was going to kill me when I ran off to watch WWF in high school (hey man, I had a Joy Dog 3:16 sign! Yeah Stone Cold) and grounded me for life…but then the next day (I believe) I was out and at it again. And maybe I should approach these things with a sense of humor like how I laugh with my mom about how she totally got pressured into buying a ridiculously overpriced vacuum cleaner. And with that I think I just need to give it up and think: 10 years from now I won’t care if I paid $15 more for rent each month when I lived in Bolivia…thankfully I have a tendency to remember the good and forget the bad…forgive and forget, life is way too short to be obsessing about monetary matters when you have a roof to live under, clothes on your back and food to eat…easier said than done of course though. I’m working on it though…

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