A Cautionary Tale
One of the first things I learned as a newbie in China was to stop thinking in terms of US dollars. After all, most expats are paid in Chinese currency at a salary that, while high by Chinese standards, would barely qualify as minimum wage in most Western countries. The 30 RMB beer you shrugged off as "just under four bucks" seems much dearer when you realize it constitutes a third of your hourly wage.
This anecdote I'm about to tell should serve as a warning to those who take the "think in local currency" advice a little too far. Last weekend I finally got around to replacing the soft plastic tip of my left earphone, which had fallen off during my trip. I walked into the same electronics shop where I bought my earphones and asked for one. The clerk reached into a small drawer and pulled out a plastic baggie full of them, and offered me one.
"How much?"
"30 RMB"
Incredulous, I pointed out that the tip was just a simple piece of plastic. I offered him 10 RMB. He smiled and shook his head. "It's 30," he said.
"That can't be right,"
"It's the price".
We bantered like this for a little while longer, but I couldn't shake the impression I was getting ripped off. I turned around and walked out of the shop without saying thank you or goodbye.
Thinking about it, I realized that I had balked at paying a mere four dollars for a tool I really could have used. Four dollars! Had I walked into Radio Shack for the same purpose, and was quoted the equivalent price in dollars, I would have handed the money over without thinking twice. Yet in China, where 30 RMB can be a dinner for three, I loudly objected in the middle of the shop.
Of course, I decided later I had made a mistake and if I could do it over again, I'd have just handed over the money and replaced my tip. Unfortunately, I'm too embarrassed to go back to the same shop where I had caused a mini-scene, so who knows if I'll find what I need?
Sometimes it does pay to think in your own currency.