Jade
Boat
Pricing in China
A group of Chinese and American business people were waiting in the lobby
of a five-star hotel in Shenzhen. One of the Chinese businessmen left
temporarily and, on returning, informed the group that the hotel’s
souvenir shop was being replaced by a clothing store. He suggested that
the group visit the shop while waiting, and be sure to notice the magnificent
jade boat. The asking price for this boat was 68,000 RMB, but it was now
available for the low, low price of 3,000 RMB. One of the Americans decided
to see. The boat was spectacular; made from hundreds of individual pieces
of jade and measuring almost 5 feet in length. When the American asked,
he was told, “Mister, we are ending this store. You may buy the
boat for 5,000RMB, an excellent bargain.”
Moral:
There is a two-tier pricing system in China, one price for Chinese and
another for foreigners. Foreigners are thought to be wealthy and they
are asked to pay a higher price. In business, this principal extends from
the individual to the organization.