By Patricia Trick

Any tourist surviving on Medano beach in Cabo San Lucas will have quickly learned the term “no gracias”. The relentless string of vendors selling their Mexican wares commences before 8 a.m. and goes non-stop until around 7 p.m.

Recently, my husband and I returned to Cabo and I asked a regular hotel guest if the popular jewelry vendor was still around. He instantly knew I was referring to ‘Paco’. Paco later appeared, sparking a flurry of enthusiasm and sales all down the line.

Paco was born in the Mexican state of Michoacan on January 29, 1951 and named J. Francisco Pineda Baltazar. In 1970, he started his career as a vendor in Acapulco where he sold head scarves and sandals. Paco switched to jewelry in 1977 to lessen the weight on his shoulders. In 1991 he moved to Rosarito Beach and eventually landed in Cabo San Lucas in 1996 because the business was better. Paco’s wife Anna and five children remain in Acapulco.

Over the next week I studied Paco, who humbly agreed to let me write his story. Based on several conversations with him, his regular customers and hotel employees, it is safe to conclude that Paco applies five basic qualities that separate him from his competition.

Here is how he does it…..

Consistency: When asked why he is successful, Paco says “I give everyone on the beach the same price. To say this price is only for you is not true. It is not good to lie – not good for the customer – not good for Paco!” Paco does not barter; a rarity among the other Mexican vendors. His reputation of consistency and fairness allows him to name his price and assure his customers.

Quality: Paco sells a higher quality of silver than most and strategically keeps one piece of “junk” in his case. “If you want junk – I will sell you this,” he says. Even though he pays more for the higher quality of jewelry, he says it is worth it. Once you make a purchase from Paco, he whips out an assortment of hand-made jewelry bags made by his wife. No matter the price of purchase, everyone gets a bag. Paco claims that other vendors have tried to introduce the bags, but quickly discovered they are too expensive and gave up. On two different occasions, hotel staff approached me to say that Paco has the best sterling silver on the beach. They claim that Paco is the vendor to buy jewelry from. When asked, ‘Why Paco?’ they explained that the hotel has to be very careful about making recommendations to their guests because if something goes wrong, they own it.

Trust: I observed a group of tourists from Seattle, who regularly bartered and haggled with the vendors. When Paco came by, they politely asked to buy one of his wife’s homemade bags. Paco explained that he had no idea what to charge and would take whatever amount they offered. In stunned silence they looked at each other and then urged Paco to give them a price. Paco insisted that he would be happy with whatever they gave him. The tourist looked over at me and said, “Well, this is a change!” Eventually they sheepishly offered Paco $10 which he graciously accepted.

Another couple on the beach named Jerry and Arlene have known Paco for many years. They pointed out that Paco operates on a trust basis with his customers. For example, Paco gives his customers jewelry to take away and try out before paying. Paco claims that he has always been paid on this honour system.

Personal Connections: Paco has an ability to connect with people. Besides his dazzling smile and gentle approach, Paco’s presentation is immaculate. One afternoon I walked a portion of the beach with Paco. All down the line, tourists greeted Paco by name and chatted with him. A hotel employee named Felix has known Paco for years and explained that Paco is successful because year after year he has return customers. He speculates that Paco will make at least one sale each day where many of the vendors will go for days without a sale.

Jerry and Arlene also point out that Paco often stops and polishes jewelry that they bought from him years ago.  Paco says that he polishes tourists’ jewelry regardless of whether it was sold by him.

Paco feels it is important not to rush. “I am never in a hurry – I have time for everyone.” Unlike many of the other vendors, he does not push people into a sale. He appreciates every sale and takes the time to thank his customers for “helping Paco and his family”.

Transparency: You are hard pressed to find another vendor on that beach who advertises their name. Paco displays his name on his uniform and carries a sign in his case that reads “PACO’s – best junk on the beach”. Paco explained that he originated the slogan, and then other vendors started to copy him. He created the sign as a way of copywriting his own slogan. However, his relationship with the other vendors is precarious. “Almost all the competition don’t like Paco,” he stated adding that the only negative experience he has had in his 33 year career as a vendor is when other vendors undermine him. He recounted a story about one of his best friends who tried to solicit a sale by convincing one of Paco’s long term customers that Paco had left Cabo. Naturally, upon later spotting Paco, the customer conveyed this story. Although Paco does not trust the competition, he tries to maintain a civil relationship with them.

What can we learn from Paco in this simple yet highly competitive market? Consistency, quality, trust, personal connections and transparency are the keys to his business success. Paco gained a competitive advantage through consistent application of these values and behaviours, at no monetary cost. The reality is that these qualities can be adopted by individual owners in the smallest businesses to executives in the largest organizations. We can all ask ourselves whether we invest in our success by capitalizing on these qualities. Paco reminds us that a critical investment in business is that which enhances human capital.

(PeopleTalk: Spring 2011)