Street Traders and business ethics

Sales & Marketing 6 Comments

(Image provided by Squeaky Marriot)

Khao San Road, Bankok.

“Hello, sir. How are you?” he greets me with a smile.

How nice. I’m a stranger in a foreign country, and someone cares enough to say hello.

My response, given without breaking stride, is followed up by questions about my nationality and the duration of my intended visit to his country.

But he goes for broke upon the realization that my walking speed has accelerated and that I am getting away.

“Sir, sir – new suit for you.”

Now we get to the point.

My new best friend, a street trader in a shopping strip frequented by foreigners, does truly care about me, and is genuinely glad to see me in his country.

But his interest is not primarily related to me as a person. Rather, his predominate focus is centered around the soft leather case in my pocket, along with my ignorance with respect to fair market prices for his offering.

“I’m right thanks.” I smile back. I have a good three meters on him now, and have successfully evaded yet another sales pitch.

“Sir, custom make. I give discount. Special price only for you…” his voice fades in the distance.

His comment about a ‘special price’ was right on the money. He does want to charge me a special high price.

 
(Image provided by Merkur)

Street vendors and business ethics
Similar scenarios can be found throughout the world in many street markets or shopping strips which are frequented by expatriates or western tourists. An army of street traders enthusiastically welcome foreign visitors, hoping to flog anything from tailor made suits, to gimmicky souvenirs, and anything in between, often at grossly inflated prices.

Generally, I think of them as part of the parcel when it comes to visiting shopping strips or malls as either a tourist or expatriate, and I feel that they add a sense of vibrancy to the foreigners’ shopping experience.

Nevertheless, not all visitors appreciate them, and their activities do raise ethical questions with regard to at least three areas:

• annoyance to patrons with intrusive or over-persistent sales efforts;
• charging over-exorbitant prices, based upon the ignorance of their foreign clientele;
• truthfulness about claims with respect to their merchandise.

Each of these issues will be discussed in turn.

 
Courtesy and Respect
With regard to the first point, street traders are business people, and as such have a right to promote their merchandise. This includes doing whatever is necessary, within reasonable limitations, in order to attract the attention of potential customers (victims).

That said, patrons must not be subject to undue harassment or interference, and traders should at all times demonstrate a degree of common courtesy in their approach.

In this regard, I feel that vendors should refrain from:

• any form of interference with respect to the physical movement of patrons, such as placing themselves in the direct path of oncoming patrons;

• approaching seated patrons during the course of meals or drinks;

• approaching patrons whose body language clearly indicates either hurriedness, or that they are looking for someone; and

• persisting with the sales effort after the patron(s) concerned have given a clear rejection of the offer.

With a little courtesy and respect, traders can attract attention without causing undue inconvenience to patrons.

 
Overcharging based on Ignorance
In relation to the second complaint, I do not feel that attempts to pray on the ignorance of foreign patrons by charging exorbitant prices necessarily represent a breach of ethical practices.

Business is a tough sport, and I see no reason why street vendors should charge anything less than what they think their clientele will pay.

Foreign patrons should anticipate such practices, and as consumers, it is their responsibility to educate themselves with respect to fair market prices, something which can easily be done via shopping catalogues, the internet, visits to department stores, or simply shopping around for the best price.

 
Truthfulness in marketing claims
As with other forms of business, street traders have every right to present their merchandise in a positive light, and need not attempt to provide an impartial view with respect to the suitability of their product for the patron concerned.

That said, they should avoid any form of purposeful misrepresentation or untruthfulness, for example by representing merchandise as genuine brand name products when it is counterfeit or fake.

The presentation of one’s offering in a positive light represents an acceptable business practice. Untruthfulness or product misrepresentations do not.

 
Summary
Street vendors should exercise courtesy and respect at all times.

Provided they do this, they are part of the culture and fun of street markets.

6 Responses to “Street Traders and business ethics”

  1. Brad Shorr Says:
    February 9th, 2009 at 11:46 pm

    Hi Andrew, Great post. I like the way you weave your personal experience and the South Korean milieu into your analysis! Street vendors and aggressive online marketers have a lot in common. They border on obnoxious and are always in your face. I often wonder – does this work? If it didn’t, why would so many operate in such a way? Do you think if street vendors practiced more courtesy, they would starve? It’s always perplexed me.

    Brad Shorrs last blog post..The About Us Page – How to Write a Website, Chapter 2

  2. Brad Shorr Says:
    February 9th, 2009 at 11:47 pm

    Bangkok milieu? :)

    Brad Shorrs last blog post..The About Us Page – How to Write a Website, Chapter 2

  3. Karen Swim Says:
    February 11th, 2009 at 1:05 am

    Andrew, the scene in South Korea could have been in any country in the world. You captured it perfectly and it is not confined to any geography or language. It may not be ethical but it is profitable. Tourists continue to fall for it so I doubt the street vendors will stop their practices. However, as you dig deeper there are certainly lessons in marketing to be learned from these vendors – romancing your product/service, knowing your market (let’s face it they charge what they can get because they know they can), persistence (undeterred they sell their wares and make their quota), and relationship selling.

    Karen Swims last blog post..Love is Not on My List

  4. Andrew Says:
    February 11th, 2009 at 7:20 am

    Brad/Karen,

    Firstly, with regard to Brad’s comment, I do not believe that street vendors need lose business by practicing more courtesy. It is more than possible for them to adequately promote their merchandise without being overbearing, and indeed, many of the street vendors which I encountered in Bankok managed to do just that.

    Some were rude, but most were fairly good sported.

    In relation to Karen’s comment, I agree. They may be a little crude, but the methods of street vendors around the world do seem to be effective nonetheless, and in many cases, these methods are a manifestation of years of practical experience.

    They seem particularly adept at reading customer body language and adjusting their approach accordingly.

    Andrews last blog post..Employee rights and responsibilities part 9: Cultural differences or abuse of rights?

  5. What I Learned From Love | Words For Hire Says:
    February 11th, 2009 at 6:05 pm

    [...] Street Trader or smart marketer? Andrew embarks on a thoughtful discussion of the street vendor. [...]

  6. seduce Says:
    March 13th, 2009 at 1:41 pm

    Wow nice and intresting article

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