While in
Uganda we visited tourist locations such as the Equator, the Nile, and
Murchison Falls. The streets on some of these spots were scattered with craft
shops selling clothing, art, bracelets, hats, and many other small hand-crafted
items. The shops sold very similar items causing perfect competition, this made
it a lot easier to barter with owners resulting in cheap prices of goods. These
shop owners make a living off tourism, do you think they could make more
profits if each owner specialized in a certain product? Safari and boat tours
up the Nile attract many tourists too, these companies need tourism to make a
living, but have little guarantee of it. Do you think that selling a good or
service to tourist’s is more profitable than selling it to locals?
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Ugandan entrepreneurs are everywhere, you can see them on the streets selling different foods and items. You can also find them at tourist destinations, this is a strong strategy because many tourist don't understand that they can get lower prices by bartering. The shop owners likely make more money off tourists than the locals.
ReplyDeleteOverall, I believe that selling to tourists is much more advantageous than selling to locals. Because, in contrast to locals, tourists normally come from a first or second world country, bringing money for the experience and "gifts" to bring back home. On average, there are too many of the same shops/services offer so tourists do have the advantage of selection and bartering which presents the locals at a greater loss.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteI do agree that selling a good or a service to a tourist is by far more profitable for business owners. Many of the MUBS students disagreed on prices when we went to the equator, and they also mentioned that the prices were a bit to high, even after bartering. I also experience that in Guatemala, as many tourist are not 100% on the value of the product and due to being foreign, they are a bit willing to pay more than a local. On the another hand, there's a loss as tourist become aware of how to barter and due to having the very similar items, tourist choose from the least expensive and in the end less profitable for the locals.
ReplyDeleteEmma: I believe that selling to tourists does provide a greater profit because most people want to remember their visit and ; will probably never come back to the place again, especially if they are from out of country. However, I do believe that it is also good to include the local in the marketing by offering discounts for Ugandans and just showing that it is for them as well.
ReplyDeleteSelling to tourists is definitely more profitable to the vendors than selling to locals because they know how to more successfully bargain. The goods the vendors provide also have less value to the locals. They have the opportunity to continue searching for the good at each shop with little time constraint. However, tourists know that they may not return and for that reason they are willing to pay a more inflated price. Also, tourists usually have the intention of buying goods as souvenirs and bring money specifically for this.
ReplyDeleteYes, I do find it more profitable to sell to tourists. The reason so is because tourists are not aware of the "bargaining culture" most of the time. Therefore, it's easy to overprice a product.
ReplyDeleteTo answer your first question, I do indeed feel as though entrepreneurs (shop owners) would make more profit if they specialized. Overall it would lessen the competition of the products as well as pricing. This would likely increase profits for the businesspeople due to less bartering as well as increased creativity. Secondly I believe selling to tourists is more profitable because they are unfamiliar with common goods locals may not be interested in, likely have more money to spend, and are likely unaware of the proper pricing.
ReplyDeleteGreat post !! Thanks for sharing valuable content.
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