Saturday, April 19, 2008

Negotiations


Much of daily business is conducted differently in China. Most retail transactions require an order of magnitude more discussion to complete. Ordering food usually involves a discussion with the waiter about the various items on the menu. Purchasing anything of value requires bargaining, which most Americans are not comfortable with. Bargaining (when I do it) goes something like this:

· Retailer points out several items I’m not interested in.
· I see something I like, retailer comments on how nice it is
· If it is an article of clothing, I try it on, and we debate about how well it fits
· If I want to purchase it, I ask how much money it is.
· Retailer pulls out a calculator, shows me an absurd price, clears it, and shows about 60% of that price, implying it is already discounted hugely.
· I quote a number (in Mandarin) less than half of the lower price
· Retailer says this is impossible, comes down slightly
· Repeat x3
· If I’m not at a price I’m comfortable with, I walk away (at which point they may run after me to resume the process)
· Once we arrive at a price, I am complimented on speaking Mandarin (though all I can really do is say the numbers, and “too expensive”), and told to bring my friends back

I’m never quite sure about what price to expect, generally you can get 2/3 or 1/2 of the initial price, depending on the place and product. Others are much better bargaining than me, but fortunately the sums are pretty small anyway.

Another example of complex transactions is our recent purchase of flights to Hong Kong. Anna spent several hours on the phone to arrange the tickets. Because they are international, everything is more complicated. In order to pay, the transaction had to be created and then individual forms sent to me, Anna, and Faizal to fill out credit card information. Then these forms had to be faxed, along with a copy of the passport biopage and both sides of the credit card. Then, a person comes by the office to deliver the ticket confirmation in person, to each of us individually.

It certainly does create jobs …

I actually have to return to the US in a few weeks for the sole purpose of getting a different visa. But it’s not fair for me to complain about the Chinese visa process; from everything I hear from my international colleagues living in the US, the US has the most complicated, lengthy, and frustrating process. So I guess I’m lucky!

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