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A friend in Slovakia opined to me that he has a hard time dealing with business clients there, compared to what it was like when he lived here in the United States. They all want something for nothing, and then complain when it isn’t up to their exacting standards. There’s still a very strong Soviet-era mentality of looking out for yourself and to heck with your neighbor. He asked for my opinion on how to get more of the “right” kinds of clients (i.e., those who will treat you fairly and pay for value received).

That’s a good question. I just happen to be re-reading Alan Weiss’s “Value-Based Fees“, and Alan has this to say in a section about the ethical nature of Capitalism (pg. 2):

Russia has failed (at least thus far) at capitalism, not because of an underlying or lingering communist belief system and not because of a lack of resources or unwilling populace. It has failed because the ethical basis required for the system to work is not firmly in place. There is still too much of an attitude of “Can I get away with this?” and “How can I take advantage of the other party?” We can also see this situationally within some professions, within certain industries, and within some organizations.

This comment about Russia could easily apply to some former Iron Curtain regions such as Slovakia. Some readers will point out that capitalism in the United States hasn’t been exactly ethical. Refer to the last sentence in the quote above. The only reason these so-called American “capitalists” get away with losing other people’s money, and getting more money from the taxpayer, is because of their willing accomplices in the Democratic and Republican parties. That’s not capitalism, because the people footing the bill (you and I) aren’t doing so freely and receiving fair value in exchange for our money.

Main Street capitalism in the United States works, and it works best when a business delivers value to its customers, makes sure customers perceive that value, and asks for fair payment in return. Trying to make that work in an environment where everybody is out to get you just might be a lost cause.