Caveat Emptor, or Buyer Beware.
No matter how you say it, most of us realize that it’s up to us to be aware of what we buy, and to take responsibility for our own purchasing decisions. Thankfully, it’s also up to the other party to be fair, as there are often consequences in one form or another if they aren’t.
However, there are times when we deal with unscrupulous sellers who are out to rip us off. It’s often evident when certain situations are shady. In those cases, we have to use our heads and know how to use our better judgment to avoid getting greedy and getting something for nothing. This 21st edition of Squirreling Gone Wild shares a story that illustrates how if something seems too good to be true and risky as well – it probably is
The Scene
Ironically, the story comes from the same trip to China that I had described in an article on the best customer service I ever had. In that piece, I recalled an example of amazing customer service near the Great Wall about 20 years ago.
In this case, the episode occurred on the end of the same trip, after we left China and exited through Hong Kong as our gateway back to the West. After spending weeks in China, as American exchange students, we were ready for the craziness and freedoms of Hong Kong. You see, Hong Kong at the time was known to be a place where money talked. If you were 17 and wanted to drink, did you have a problem? Nope. Just go to a local bar or even convenient store and buy whatever you want. I visited my first bar ever while there – an Australian pub. Believe me, it was fun. A lot of fun. We had a little bit of money to spend, and that’s all anyone cared about. “Let’s make a deal” was the tone.
This deal-making attitude also took hold at many stores in Hong Kong. We were told ahead of time that people can negotiate for electronics, clothes, and other goods – there were no “true” fixed prices at many places. This was particularly true at smaller stores.
I had a few small deals, and that was it. I bought a jar of Tiger Balm (good stuff, by the way), bringing the guy down from $3 to $1. Small potatoes, really. Truth be told, I didn’t have much money and was lucky to be on the trip anyway.
Some of the people in our group were particularly excited about electronics stores. The notion was there that you could get electronics at much cheaper prices than back at home, if you smartly negotiated. Keep in mind this was 20 years ago and Hong Kong was a different place then. Saying all this, we were warned that we should be careful.
Of course, being high school kids, not everyone was mature or street smart. Some people on this exchange trip had never been out of the U.S, and had probably been sheltered. To some degree that included me.
The Deal
One guy in the group kept talking about how he wanted to buy a top of the line camera. The way the story went from those that were with him, they visited an area that had a large cluster of electronics stores, crowded next to each other with neon everywhere. So the kid walked in, found a camera he liked, and started to negotiate.
Apparently, he really aggressively tried to drive a hard bargain with the store owners. Eventually, the guy he talked to said he had to talk it over with this boss. Then, the salesman and his boss switched languages from English and went back and forth with each other in Chinese. Naturally, the American kid had no idea what they were saying.
Then, the boss turned to the kid and said “Yes” in English, indicating that they had a deal. The guy then once again spoke in Chinese to his employee, sending him to the back room to get a camera. When the guy returned, he brought a camera box, and the boss told the American kid that it was in its original box so it can’t be returned – especially since such a great price was being given.
The kid thought he was buying a camera at half the price of what it would cost at home, so he didn’t care. He quickly purchased the camera and left.
The Outcome
Well, sure enough, the kid opened the camera box later in the evening back at the hotel. What did he find?
Rocks!
Yep, they sold him a box of rocks. What a deal.
Naturally, many of the other people in the group were getting great laughs at this kid’s expense. I remember feeling bad for him, but laughing about it with others when he wasn’t there. It’s still funny to me.
WHAT IN THE WORLD WAS HE THINKING?!
What was funny is that he tried to go back to the store the next day, and the people tried to act like they only spoke Chinese and didn’t understand English. From what someone who was with him said, they were openly laughing at him and joking with each other in Chinese.
The American kid was ripped off and had no recourse. At all.
The Lessons
To me, this is another example of anti-Squirreling Gone Wild, actually – where the tables are turned and the business tries to save money on the customer, in a sneaky way. As I recalled this story, it reminds me in a way of my own experiences with The Crafty Waitress, from Squirreling Gone Wild #16.
It’s not just consumers that are looking to pinch pennies, its some businesses too. Yet they’re willing to pinch dollars out of you instead.
If it seems too good to be true, and appears to be overly risky, it probably is. Be sure to keep the something for nothing urges in perspective and under control, or someone somewhere will be there to exploit them.
How about you?
Have you ever been completely ripped off, or have you heard of anybody you know being totally scammed by a business?
Do you have any tips to avoid such situations?
Always open the box!
Sandy@yesiamcheap – simply but accurately stated. Open the darned box! ESPECIALLY in any place where you don’t know the language or customs.
I have two friends who were scammed by a home remodeling “expert”. They weren’t as cautious as they should have been because they knew this guy and trusted him. After all, he attended their church. In the end, they paid him all of his money before the remodeling was satisfactorily completed. He took their money and left them with shoddy and incomplete work. They both had to hire someone else to fix the mess. Tip 1: never pay ANYONE until they have satisfactorily completed the work. Tip 2: Always get references before hiring anyone.
Joe – wise words indeed. Pay after the work is done according to what was previously agreed upon. Also, in terms of references, I try to get an unbiased one. If one isn’t available, I’ll try to solicit 3 quotes to do due dilligence.
A long time ago, I needed a local mover who was going to give a great deal. The funny thing was he moved my mother. He needed a deposit, should been a red flag! The day of move came and he didn’t show up, I called numerous times and heard excuses. In the end, I was ripped off! I made complaints with various state agencies and nothing was done. I guess it was a cheap lesson ($50).
krantcents – that’s really something when they helped someone’s mother but ripped the same person off! Wow, that tells us that we have to be careful even with those for whom we have some kind of reference. A deposit seems understandable actually, so I’d chalk this one up to a bad apple you dealt with rather than your own mistake.
I had an electronics company try to scam me once. I ordered a camera (what is it with cameras???) online at a great price. Then come the calls trying to get me to buy overpriced accessories, etc. I said no. Next thing you know the camera is backordered… hmmm… but then I am informed if I buy a package they can ship my order right away. Needless to say I declined, and then they cancelled my original order.
Single Saver – sounds like some convoluted bait and switch attempt on their part. Want you to buy the camera so they can lure you into some unnecessary, overpriced accessories….what a joke. I hope you got your money back in full when they canceled your original order.
This is the risky part about buying things overseas — they know that you’re not likely to be able to do anything or go after them, so it’s important to be extra prudent and cautious! I would probably not buy electronics directly from a store like that for that reason unless I had a trusted local with me who could assure me of the place’s reputation.
P.S. I love hearing about your stories from this trip. Makes me want to go back to Asia…
Invest It Wisely –
It’s really important, I agree with you. You’re on their hometurf when purchasing overseas, so what recourse do you have if something goes wrong? Important to check out your purchase and make sure they don’t switch things on you or anything shady like that.
Now, I wouldn’t say that all overseas purchases are suspect. The example of great customer service that I shared in that prior post was actually a case where the locals provided exemplary customer service and were far more honest than we had thought. So, we can be surprised both ways, not just negatively but also positively.
That said, protecting oneself against the worst case is important, so one must really careful if choosing to buy things abroad in an environment that’s unfamiliar.
Also – it’s cool to read that you like the stories of the China trip. There were some neat life experiences there that I could be taking for granted without realizing it. I’ll try to work some into some future posts here and there. By the way, your article on China was probably the favorite I have seen on your site, because it reminded me of my own trip there. It was quite an experience for someone not Chinese to go there from the Midwest and experience a totally different culture from our own.
That is horrible! That poor kid! If I’m in a different country, I would exercise caution. I usually hear cabs are the biggest rip offs for tourists!
That’s terrible. I never buy electronic oversea. You lose out on warranty and you never know if it will be work in the US.
Sorry to hear that story, but I’m sure tourists are still be ripped off all over the world. When we travel, we just want to experience the places. We don’t buy much junks to haul home anymore.
retirebyforty – good point on not knowing whether or not certain electronics will work in the U.S. I agree that there are people getting ripped off all over the place…probably somewhere right this minute.
I wonder, is that where the saying “dumber’n a box of rocks” comes from? 🙂
Just kidding, sorry to hear your friend got scammed, but perhaps he learned his lesson. I got taken for a CD on eBay once. The guys just never shipped it, claiming this excuse and that in a lengthy exchange of emails. As I finally decided to leave negative feedback, found out his eBay account was closed. Seems like a lot of effort to go through for only 11 bucks.
101 Centavos – Yeah, there were jokes about the guy having rocks in his head:) As for the CD example, that seems like an awful lot of work for that crook to go through over $11. What a waste, all around. No wonder his eBay account was shuttered.
I almost got ripped off today while downloading some online materials (from a state bar association) no less. I bought the digital copy and the link came up with a message next to it saying that “no refunds would be given on digital downloads.” The link wouldn’t work and when I called back they kept saying, “sorry, no refunds.” It was quite aggravating to say the least but I eventually got it straightened out.
Great Post on Hong Kong. You were very lucky to be able to go on such a trip at such a young age. It looks like you were also lucky not to buy a box full of rocks.
Brokeprofessionals – Yes, I agree that it was a fortunate circumstance to be able to go on a trip like that, especially back in the day when relations were much colder than they are today. We even got to see the U.S. Ambassodor to China at the time, at the Embassy. Clearly, there weren’t too many U.S. travelers out and about there at that time.
Okay, this story is HILARIOUS but also very sad. Well, at least it didn’t happen to you. I would be afraid to buy electronics in China with no warrantees.
First Gen – Yeah, it was funny at the time, and actually funnier thinking about it. I’m glad that wasn’t me, though I wouldn’t have actually been as naive as that guy. All of us here, I would think, would have made a more practical decision than him. But hey, I guess he was young and trusting.