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Ecuador Markets: The Gentle Art of Negotiation
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by Gary
Phillips
One of the cultural aspects of Ecuador markets
that many foreign visitors find a bit daunting is the custom of
negotiating.
For example, yesterday I needed to purchase a new coin
purse. I knew the going price for these types of
purses is $1. I walked into a store on Leather
Street, picked one I liked, and the clerk, believing me to be a
tourist, told me the price was $2.
Let me put this in perspective. He is trying to get a 100%
mark-up over the going price. I acted very
insulted, said
that I knew for a fact that these purses were sold all over the street
for $1. He then acted very insulted back, telling me that
this was a much better purse than the others (it was a little better,
that’s why I wanted it). He said he would give it
to me for $1.50. I said $1.25, he said okay. This
entire exchange took about 3 minutes.
Negotiation is Expected in
Ecuador Markets
Then he got a big smile on his face and called me amigo,
friend. We shook hands and I left. We were both
happy. He got a good price and I got a good purse.
More importantly, we left with mutual respect.

But the
deeper point is that an unsuspecting tourist would have greatly
overpaid for this purse, and lost the respect of the
merchant. If one wants to master Ecuador markets, then this
game must be mastered.
A friend of ours came from the states for a visit a couple days ago. I
had advised her about a hotel near the Quito airport, but forgot to
advise her about the taxi cost. Keep in mind, in Quito, you
can ride nearly from one side of the city to the other for about $6 or
$7 by the meter during the day.
At night, the prices go up, and the meters are shut off. This
is where negotiation enters in. The hotel was about 2 miles
from the airport. Normally a ride like this should not cost
more than $3. She was charged $10. She simply
didn’t know about negotiating and the taxi driver saw her as
an easy mark.
But the next day, when she went to catch the bus, the taxi charged her
$8 without turning on the meter. The ride should not have
cost more than $2.
So in two rides, she paid $13 more than
the market price.
Things like this can add up
quickly. During
the day in a Quito taxi, always watch the
driver to see that he turns on the meter.
If he
doesn’t, tell him to do so. If he makes excuses or refuses,
either get out of the taxi, or negotiate a fixed price for the trip
before setting out with him.
The
place to really practice the gentle art is at the Otavalo market,
the largest indigenous market in the Americas.
The Otavalo
Market is
the perfect place to master your negotiation skills for Ecuador
markets. The merchants there have been doing this business
for 500
years. And they will take you for a ride if you give them chance.
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One day I was buying a painting for a
client. The asking price: $125. It was
beautiful. I wanted it and he knew it. Just as I
was going to make a counter offer of $80, (I thought we might settle on
$90), a friend came by who has lived here for 14 years. I
asked her, “what do you think this painting is
worth.” She replied, “You should be able
to get it for $25.” I
tentatively offered $20. We settled on $30. He was
happy, I was thrilled. And I learned a huge
lesson.
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Learn to Get High Value from
Ecuador Markets
Even in the vegetable market, after buying fruits and vegetables here
for nearly a year and a half, the vegetable ladies will still try to
get an extra quarter or $.50 out of me.
We have learned what the prices are by patiently watching the locals
when they buy, seeing what they pay and requesting the same
deal.
If I ask the price for avocados and they offer
me four for a $1, I come
back and say, “le doy a usted un dolar por
cinco.” “I will give you a
dollar for five.” If that is a good price, they
will give it to me. If not, they say no. I try
again, just to check, “por favor, un dolor por
cinco?” with a pleading look in my eye and voice and a bit of
a whine! Then they smile and give me the fifth
avocado. I happily give them the dollar. Now we
respect each other and our relationship is developed for the next
weekend.
But I see too many gringos come into the market and give whatever is
asked. And
sometimes I see the look of distain on the faces
of the vendors. They start seeing gringos as
stupid marks to
be taken advantage of. It certainly doesn’t help
our collective reputation in the community.
Negotiation
in Ecuador markets is a part of the culture. If
we are going to live in Ecuador, we need to learn the culture and learn
how to enjoy the game.

With the potato lady, after several months of buying from her, I tell
her I want a dollar’s worth of potatoes and she fills my bag
with twice as many potatoes as I used to get, even when I
bargained. Her
reward is that she knows I am going to
purchase from her instead of the lady beside her.
My reward is knowing that I have been accepted into her
world. We are friends and good business
associates.
I have become a part of her culture. We dance the Ecuadorian
economic dance seen in all Ecuador markets.
So don’t be afraid to bargain. Learn the game and
play it. Your experience of living in Ecuador will be much
richer and your pocket book will still have some money in it at the end
of the day. Have fun in the Ecuador markets.
More Information
Do you negotiate in restaurants?
*
No, this is not necessary, unless there is no menu and the price they
quote you seems high. But most places have menus and just go with the
printed prices.
*Do you negotiate in hotels? *
The higher end chain hotels have a set price, but the mid and lower end
privately owned hotels regularly give discounts just for the asking. It
is very simple to ask, “no puede dar me un
discuento?” Sometimes, the
hotel will say, “do you need a receipt?” If you say
no, then they will
often give you a 10-15% discount. Nothing ventured, nothing gained.
That said, we
have even received discounts at the Hotel Quito simply by asking.
* Should I negotiate for tour
services and guides?*
Many tour services will give discounts too, just for the asking,
especially if you are within one or two days of departure. The tour
company may have 10 slots but only 8 filled. For them, it is better to
get something rather than nothing for those last two slots, because
their fixed costs are already covered by the first 8.
In fact, this is
a very good
strategy for getting low cost fairs to the Galapagos and to the Amazon,
particularly if you are in country and your departure date is flexible.
You can sometimes save as much as 50%, even on
the expensive boats. Shop around.
There are many of
tour agencies in the Mariscal Sucre district of
Quito. But make sure you ask for references, and have them specify
exactly what you are getting for your fare. Sometimes the agencies cut
fares by cutting services.
If you go to two
or three agencies and do some comparison shopping,
you can get an idea of the differences for different prices Also, check
the guide books. Many tour books will point out agencies that are less
than solid.
*I assume that most people who
are
can afford to visit from wealthier countries are considerably wealthier
than the people of Ecuador. I imagine that I may well feel quite a
degree of guilt if I try too hard to get the best deal.*
This is most
often an erroneous assumption and is characteristic
(excuse me for being blunt) of the imperial attitude of many westerners
who travel abroad. In the market places of Ecuador, especially Otavalo,
the merchants have been doing this business for years, even centuries.
They send family members to Europe and America to peddle goods they
make here in Ecuador. They
have found
that the “we are so poor” approach works very well
with gringos to separate them from their dollars. Then
they get into their new 4 wheel drive pick-up and drive home.
I guarantee that
no one will sell an item at a price that they do
not want to sell it for. If you make a deal with a merchant, then you
can be assured that he is happy with what he gets. Maybe you cut into
his margin a bit, but he knows that the next gringo that comes along
will make up for it.
Many times, westerners are played for suckers
because of their “Oh, we just want to help
attitude.”
The wise merchants love it. I have negotiated hard, even walked away
from a potential purchase, then come back and buy it, only to find that
on another day, a friend or acquaintance purchased the same item for
20%-30% less than what I paid. So regarding your feeling of guilt, I
have one thing to say. Get over it. haha.
Now, in spite of
all this, if you hire a guide, go on an
excursion,etc., you’ve bargained hard for a good price, and
then you
get excellent service, reward the service with a good tip. Believe me,
you will be appreciated.
So the bottom
line is this: If in
doubt about a quoted price, ask for a discount. This
simple question takes you out of the tourist class and puts you into
the traveler class. There is a huge difference and can save you
significant dollars on your trip.
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