5/29/07

Price Fixing

Yesterday I wandered into my friendly neighborhood foot massage place, where I tend to spend a lot of time chatting with the staff and occasionally teaching them a little English. I noticed that their shiny new English menu (which I helped them translate) had inflated prices. I asked them why foreigners have to pay more (in all fairness, it's nothing personal against Americans or Europeans - the menu alsohad Chinese on it so they can cheat people from Hong Kong, Singapore, and Malaysia) and they said it's no big deal and that people traveling in a foreign country should expect it. In America, they think, the same thing happens to foreigners who wander into small shops. I told them that a taxi driver or street vendor might cheat a foreigner in any country, but the idea of having two menus with two different price structures is absurd and mildly offensive.

But then I started thinking. Is it really so bad? Is it a way of ripping off foreigners, or is it similar to the discounts locals in Hawaii get when they go into a small shop and tell the owner that they're local?

Anyone have any opinions? Please post a response if you do ...

6 comments:

Anonymous said...

I wonder if it has something to do with the fact that many asian countries are just opening up to foreigners....It happens alot in Thailand, many national parks, discos etc foreigners have to pay up to 200% more. I wouldn't mind if people from other parts of Thailand had to pay that price too and some locals just got it cheaper... seems less offensive.

Anonymous said...

Yes, the same goes everywhere in the world I believe. In many famous tourist's spots in China, the local citizens can get entrance at less than half of the ticket fare.

Besides, can you figure out why American schools will charge much more tuition fees to students coming from the poor third-world countries like China and Korea? Fairness is a relative term on this issue.

Tony said...

American schools charge more for outsiders. In the case of state or city schools, they charge more for out-of-state or out-of-city residents (other Americans). This is a way to ensure that local schools can serve the local community. They may also restrict the number of outsiders that are allowed to attend, in order to make sure that locals can attend. In the case of Hawaii, it's also a little bit different. Hawaii is a tourist haven, where locals are, in many places, outnumbered. In order to ensure that locals can afford to live there, some businesses give locals a discount, which is similar to having a VIP card or being a 'regular' who gets special treatment.

As I said, there are bad people everywhere. A taxi driver or street vendor or lawyer or plumber may rip off someone in any country. When they do, it's wrong. However, the idea of having two separate menus with two different price lists is still offensive to me. If a business has one price list and chooses to give discounts to some people (maybe locals or VIPs with a membership card) - no problem. Having two price lists and sizing up the customers when they come in seems ridiculous.

I also think it's a stupid business practice. Any time someone tries to cheat me, or I have a big problem with customer service, I argue with the management. Sometimes I win, sometimes I lose, sometimes we reach a compromise. I don't want to imply that it happens a lot in China - it doesn't. However, when it does and I'm not satisfied with the results, I never go back to that business. When disputes are handled in a professional way, everyone wins.

Now, I know some people are going to get pissed off. I love China and I love living here - if I was in America right now I might be writing a blog complaining about some things I experience in America and writing about some nice things in China. If you read deeper into my blog, you'll read some of the things I've written about China which are positive.

And...Korea is a poor, third world country? I don't think so.

Anonymous said...

Hey, T, I agree with you. It's one thing to discount prices given to all uniformly at the owner's/etc.'s discretion and another to presume something about difference from the start. Besides, schools who do in-state and out-of-state pricing do so *because* they are state schools and have a responsibility to their own citizens and essentially, to provide education for those who can't go out of state: the premise isn't to screw out-staters. So your discussion about distinction hinges on intent: the owner who discounts when he/she feels like it from a uniform menu is entitled to that; the owner who sets up different price scales ensures from the get-go an essential unfairness. xx KP

Anonymous said...

Not proper anywhere. That it occurs in Hawaii, etc., it should be stopped there as well. Equal opportunity discrimination is not the way to go. Sort of like everybody punching everybody else in the face. Equal, true. Not a good way of living.

Tony said...

And I forgot to mention that Chinese schools charge foreigners a lot more, too. I know - I've been a student in a Chinese university.