Cultural differences do matter. In ways we do not understand if we have not been exposed to other cultures. Cultural differences may perpetuate feelings of distrust if they are not understood.
It is important to understand that if you recognize differences in the way people from other cultures think, that it is not a matter of prejudice. Rather, it is one way of beginning to bridge the gap in a way that is workable.
Our client base, and our associate base, has broadened quite a bit lately. And I have learned many things because of it, in why I have always felt a certain way about some people I associated with, never even identifying what it was that made me feel that way.
One example is, in dealing with someone from a middle eastern business background. Haggling is second nature to them. They do not understand why we would NOT haggle. Setting a flat price with them is not understood. They have perceptions and responses going on through it that would not occur to me, but which are second nature and important to them.
A client had a bill that was overdue from a man from a middle eastern background. The client tried to get them to pay, but they kept trying to talk the client down. Finally the client filed a lien, which got an instant response. But still, the intent was to not pay full price – in the other man’s culture, to give in now would be a loss of stature. So our client added up the interest due, and presented that for collections as well. The other man haggled on THAT, and the client let him win. The funny thing is, that it ended up costing the business man more than if he’d just paid it in the first place, but since it gave him the feeling that he had won a point in the end, he was satisfied. Our client ended up with more than he’d have asked also.
This all sounds sort of silly to someone living in the US in isolated western communities all their lives. But it was an education to me, in how people can just think about things differently. It stood me in good stead when a client of mine started to haggle. One of my colleagues said she would have just told him flat out to pay or go away. But I did realize that this was his expectation – that if I understood how he thought, we could still have a good business relationship. I did not give him what he wanted, but I did knock my price down a bit, enough so that he could accept knowing he had won a point.
Since then, I’ve learned many other things from this client – the manner in which he does business operates on a different set of principals than it does for us. Not better, or worse, just different. When he first spoke of “old bazaar”, I did not know what he meant. I have since learned that it means many things. And that many of the standards that he operates around, are responsible for some misunderstandings between cultures, and a sense of distrust.
You see, in a haggling culture, you present your wares in the best possible light. It is the customer’s responsibility to examine, and point out the flaws, to lower the value, and the merchant’s responsibility to point out the good points and enhance the value. It is an expected exchange, and both feel certain that if they do it well, they’ll end up with a good balance in the end.
In our American culture though, if a price is inflated, we feel that the business owner is trying to cheat us. We would not generally consider offering a lower price, we’ll turn and walk away and find a stated price that is more reasonable. We consider pricing to be evidence of integrity. They consider it to be a matter of perception between two people.
We think they are telling us to pay full price without complaint. They are actually telling us that they’d really love to get that much but that they’d never expect you to actually pay it!
This is only one set of cultural differences that can influence business relationships. It is important that you understand if you are marketing in a culture that you are not native to, that things may be different for reasons that would not occur to you. It is also important to understand that when you are dealing with clients, suppliers, or contractors from other cultures, that their long held traditional behaviors and thought patterns may influence your interactions in ways that are easy for you to misinterpret. A little bit of consideration can go a long way in easing tensions and avoiding conflict.
The client of ours who started out by haggling, has been a good one. Utterly predictable, patient when he we had no right to expect him to be, and willing to trust me as long as I continue to do what I said I would. It was worth making a concession that I would normally not have made.