Hola all.
If you're living here in Ecuador and are not a local you have experienced being charged more for everything from food to cabs to rent.
If you're anything like me you may have thought the answer lies in education. Seemed like a reasonable thought pattern to me and so I made efforts to let Ecuadorians know how gringo goughing is hurting them and would continue to be thier downfall if they did'nt change the behaviour.
It fell on deaf ears. It was then that I realized that of course they are not going to change the behaviour. They see an oppourtunity to make easy money and they are seizing it. Fair enough.
After this lesson and some thought I realized my arrogance was in the way. Truth is it is US who needs educating. If we continue to come here and make price comparisons to back home it won't be long before only the rich can have a good life here. Sounds like North America all over again. I don't know about you but that just doesn't sound great to me.
While we will likely always be charged more for things that does not in my opinion mean that we can't place limits on the behaviour.
Not all locals are practicing this and some have even helped me to understand what prices should be. I am more aware of what rental prices should be as well as cab fares and market prices because a couple of Ecuadorians were kind and smart enough to inform and educate me.
So now that I knew for certain I was being overcharged what did I do to remedy the situation.
First and foremost we must stop making comparisons to back home. The only comparison that matters is the market that we find ourselves in. This means making friends with locals and spnding enough time examining the markets and learning. Also you have to be willing to walk away. There are other vendors, other rentals and other cabs. Ecuador has a lively and competetive marketplace. There is no reason to pay top price for anything.
Also we need to stick together. I am going to relate a story that really brought this home for me.
I had been told by a woman whose store I had frequented what the locals paid for fruits and veggies at the mercado downtown. I was floored when I realized that the overpricing was costing me an additional 3-400.00 a year becasue my skin was white.
I was determined to stop this behaviour. The next time I went to the market I was armed with a note that stated that if the vendor was willing to give me local prices I would shop with her and only her weekly. She would get all my business and I would tell all my gringo friends about her and send her more business. I went from one vendor to the next. They laughed and made jokes at my expense until I finally left promising myself never to return there. And I haven't.
It dawned on me that all these women were sticking together. None of them was going to be the one to break what I think is their silent pricing code for gringos. They were sticking together no matter what. Once one of them lowered the prices for a gringo the ramifications were endless. Besides why do it.....there are so many willing to overpay!
So why don't we stick together????? Send just as clear a message.
Anyways I went to another smaller downtown market and was very pleasantly surprised to find that it was much cleaner. The first ten or so vendors were all the same. I used avocadoes as my measure for pricing. I knew that locals were paying 75 cents for three. The gringo pricing so far was anywhere from 1.00-1.75 for three. I was beginning to lose hope. Then came a friendly face in the crowd of vendors. I got out my note and managed to let her know that if she was fair with me I would do all my shopping with her weekly. I have kept my promise and am very happy with her. Her prices are not local prices but very fair and she always throws extra fruits and veggies in for us. To look at the faces of the vendors around her causes me to wonder just what is being said about this phenomonon that they are witnessing. Is it possible that in a culture where there is vendor after vendor selling the same products that they no little of consumer confidence and repeat business?????
As for cabs I now know exactly what a cab should cost for most of the trips I make. That does not stop them from trying to overcharge me. I do a couple of things to stop this. You can negotiate the price before getting in but often this backfires. The cabbies will drive away because they know there is ten more gringos willing to be overcharged up to a dollar or more for the ride. I always make sure I have the correct change. At the end of the ride I give them what I know is the correct fair. A few times this is acceptable but most times there is a problem. I simply tell them no and get out. They will put up a fuss but that is about all. I keep telling myself that I am saving them and us from ourselves.
The thing that boggles my mind and makes this all very challenging is that the average Ecuadorian feels justified in overcharging us. They don't even try to hide it. I have heard prices quoted to Ecuadorians and when I complain about the overcharging they laugh.
Anyways the market place where we are really taking a beating is the rental market. If this does not stop I forsee a time very soon where many of us will not be able to afford rents here.
Unless you are lucky enough to find an honest landlord chances are very good that you are grossly overpaying for your rental. They justify it all sorts of ways and I do think I have heard it all. It's tough. We get here and really have NO idea what the prices should be. The prices all seem very attractive compared to home. We are anxious to get settled. All these factors come into play and trust me I get it.
My advice is do not sign a lease longer than 3-6 months on any rental and use that time to learn about where you are living. Yes you can expect to pay more for a short term rental but the time if used properly you will save on your next longer term rental.
The next piece of information is something I stumbled onto years ago and have used time and time again for large purchases and with great success. It is called THE ONE PRICE SOLUTION and while it was something that was recommended for buying a car or a house I have used it for many larger ticket items.
Do not fall in love with one apartment, house, car, washer, dryer or what have you. Find two that will meet your needs and pit the vendors against each other. Basically you are going to rent an apartment or buy a washer or what have you and you do not care who you buy it from. Who ever gives you the best price will get your business. Do NOT under any circumstance let one vendor know the price the other vendor is giving you. You will only accpet their lowest price and this is a one time offer. This ensures you are getting the absolute best price they can do.
You take this one step further by spending time with the vendor. Actually you are wasting thier time. The more time they have invested and the closer they get to a possible sale the hungrier they become.
Homes and apartments have scentimental and emotional value to the vendor or landlord so don't be afraid to tell them how much you like thier space. If the space has been on the market for a while this helps you a lot. They become very excited about the prospect of finally renting or selling and they want someone in the space who loves it and will care for it.
For rentals or home purchases it helps if the property has been listed for a bit. Initially an ad gets lot of responses and the vendor can and will be lulled into thinking the place will rent or sell quickly. Once the initital rush is over is when it is best to use this system. For the best case scenario wait at least a week or more after the ad goes up.
Make at least two visits to the vendor or landlord who has the product you want and do not be in a hurry to leave. Ask questions, show interest and spend time.
Then armed with your note in Spanish let each vendor know you have found two apartments or what have you that meet your needs. You do not care which one you get. You will only accept their absolute best price and terms in writing by the end of the day. You would not believe how much money this system has saved me over the years.
Trust me landlords here want expats for a number of reasons. You do have some power here but you have to be willing to walk away. If you have two places that you like then walking away is made all that much easier.
Now all that being said I did NOT do this with the space I now have. We haven't be gouged as badly as some but we have overpaid by a least fifty dollars a month and the landlord is now advertising the space for when our lease is up for an additional 50.00 which means this space is easily overpriced by 100.00 a month for the next gringo tenant!!! This is not going to happen to me again. When our lease is up here I plan to take the time and use the ONE PRICE SOLUTION to help me get the best price.
However I did use it on the washing machine we bought here and saved over 200.00!!!!
I also plan to use it to help a friend furnish his condo. I'll let you know how we make out.
In closing we are part of the problem. This does not mean we can't be part of the solution. We need to be willing to take the time to learn the culture, learn the marketplace pricing and try our absolute best to just say no. If we don't we will have no one to blame but ourselves when the average income person cannot afford housing here.
Hope this has helped and as always I look forward to any comments or questions.
Buenas Dias!