It’s Just Business

“Quito! Quito! Quito!” called the ticket salesman at the station in Banos, trying to outshout the guy in the next booth selling seats for a different bus.

“Perfect! Do you have four seats?” I inquired.

“No mas,” he responded without hesitation.

“Then why are you still selling seats?” I attempted in my best Spanish.

“Porque es mi trabajo!” (Because that’s my job)

We encountered lots of these strange commercial endeavors during our time in Ecuador, especially when in Quito or along the route during our travel to some weekend destination. Nearly every bus ride involved at least one entrepreneur (often multiple) hopping on the bus to promote their wares hoping a captive audience would buy something. Water, fruit, empanadas, salchipapas, candy, clothing, artwork, serving spoons, pens and highlighters, rope, and plumbing supplies were all convenient purchase options. My favorite is still the opportunistic vendor who hopped on a hot city bus with a fistful of ice cream cones, selling down the aisle for 50 cents apiece. When they started to melt near the end of the bus, he quickly cut the price in half to offload inventory (real-time dynamic pricing). Then jumped off the bus at the next stop to run up the hill to his creamee machine to do it all over again. Rinse and repeat, likely all day.

During our travels we’ve also been privy to various performances in parks, on buses, along the streets, or even in the midst of rush-hour traffic. These “artists” play music, sing, make balloon animals, and recite slam poetry (or rap lyrics…I couldn’t quite tell). Street performers would conduct magic, juggle pins or machetes, act as mimes, dance and sing, or sometimes just paint themselves as gold statues. These activities develop organically along sidewalks and in alleyways as long as there are potential patrons passing by. The boldest of the bunch learned the timing of traffic signals, setting up at busy intersections to perform for 30-90 seconds in front of stopped vehicles before wandering through traffic to solicit payment for their show. One even set up a tightrope between streetlights to walk over the intersection while juggling fire. All in the pursuit of spare change.

It’s been fascinating to witness a multitude of sales tactics be deployed and gauge their effectiveness, or lack thereof. A handful of vendors would pitch (from what I could decipher) the features and benefits of their product for 30 seconds, then walk down the aisle to see who may be interested in buying. Marginally successful. Others would tell stories about their wares and how it helped them and people like you. A little better. Some would purposely only engage a small handful of the more attentive audience members, focusing their eye contact, storytelling, and direct questioning for this target market. Improved still. Couple that with the salesman being blind or crippled for an emotional hook and uptake improved. (Although I did see more than one “disabled” vendor miraculously walk once he got off the bus.) The most effective tactic however, was when vendors would hand their salable item, free of charge, to anyone who was willing to take it, and let them hold it and consider the purchase while the vendor made their way through the rest of the bus patrons (no immediate obligation). Then they’d circle back to either close the sale or collect their unsold item back. This approach — which forces buyers into the mindset of having to give something up if they hand it back (loss aversion) — was particularly effective for selling chocolate and other sweets. Girl Scouts take notice.

Ecuador ranks ~100th in the world in adjusted gross domestic product (GDP) per capita of $11,200, which is less than both the world average of $15,800 and the United States at $59,500. There has been a marked improvement in this country’s finances and economic outlook since 2000 when it underwent a series of economic reforms (including adopting the U.S. dollar as its currency) after experiencing a severe banking crisis, economic growth of negative 5.3% that year, and poverty increasing dramatically. GDP has more than doubled since. Many people are still undoubtedly poor here but find creative ways to make ends meet to support their families and keep a roof over their head; panhandling is surprisingly rare. With the economy tied so closely to the price of oil (petroleum accounts for more than half of the country’s export earnings), GDP growth has slowed in recent years. Although income from travel and tourism has been growing faster in Ecuador than anywhere else in Latin America, it still represents only 5% of GDP.

Perhaps the most enterprising Ecuadorians are those who have learned to speak English in some meaningful way. Our travel coordinator is the owner of a successful Spanish school, hostel, and tour company, and previously taught English. Our host family in Quito were both teachers (one teaching English) and earn income in retirement through hosting travelers in their home and offering Spanish lessons and cultural immersions. Tour operators and travel agents who advertise “We speak English” typically have the best storefronts in prime locations. Even people who have a simple understanding of common introductions and phrases (“Hello, my friend”) have often earned our trust and business faster than the competition.

With prices for most goods and services 2-5 times less than stateside, an inconsistently applied sales tax, and tips only given for exceptional service (not the default expectation for every service-related role like in the U.S.), money undoubtedly goes further here. We’ve been thrifty when it comes to buying things (and really didn’t have the room to carry anyway), instead investing our dollars in novel experiences to appreciate and remember. With every $1 in direct tourism spending leading to an additional $1.50 of indirect and induced economic benefits, I like to think our contributions here are going further than elsewhere. (Or perhaps this is another sales tactic I haven’t identified yet.) It’s just business…helping support the local economy.

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