In this episode we discuss the real reason why street vendors are making bank.
How do walking street vendors make money? So you've seen these street vendors? Probably when you've been on vacation, likely in Mexico, on the corners of the streets, you'll see much people. They're just selling things to people in cars. And a lot of times they're selling really, really ridiculous stuff. And I've always thought, and I'm sure you've always thought this, too.
But how are they actually selling this stuff? And what I've noticed is the same person is back every single day, doing the same thing, selling the same extreme stuff. So something has to be working for him. To want to come back over and over. There is no way that he would keep. At least I would imagine there's no way that he would keep doing it if it's not bringing any returns. So I was wondering, how is he making any money? And one day there was one street vendor. He was selling mosquito rackets, and I remember the mosquito right, because I was like, Oh, I didn't even know that really existed. It was like an electric tennis racket-looking thing, and you can swat mosquitoes with it.
And I thought it was pretty cool, especially if you're living in Mexico. There's a lot of mosquitoes here, and that would be really handy. And I didn't really think too much about it until I went home and I started getting bitten by mosquitoes and I was thinking to myself, Wow, it would have been so nice to have that electric mosquito tennis racket thing. Um, like zap mosquitoes left and right. So then I went on Amazon and I discovered that they actually had it on Amazon and there was really no urgency for me to get it, but that's when it kind of hit me. They are selling things that people will immediately need, and they create a sense of scarcity because you only have a few minutes to make a quick buying decision while you're at the light and they use that to their advantage. So if they can find someone, it hooks someone with one of their products because it's something that someone experiences within that location.
Then you have 1 to 2 minutes to decide whether you want to buy it or not. Most people, they don't want to give up the chance. They feel like they'll be losing something and, ah, loss hurts more than a win. And that sense of scarcity gets people to buy so kind of amazing. You see street vendors using this. I don't know whether they know what. They're what they're doing or not, but it makes total sense on how they are actually making money.
So next time you're on the beach in Cancun or Tulum, and you see these street vendors walking by Yeah, I just realized that there, creating a sense of urgency, they walked by with their product, and as soon as they're gone, they're gone. And especially if it's something that you can buy on on Amazon. Like if it's in Tulum, they sell dresses like Tulum-style dresses on the beach. And that's something you can't find on Amazon, and they do pretty well. So I will see you guys in the next episode.
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