By artificially pricing goods in Mexico, using the USD, instead of it costing less, as it should for me, it's costing more. A lot more. This, and only this, is what I, and several others, have been trying to illustrate.
^^^ THIS ^^^
in all honesty, after reading most of the posts from those who disagree with what we are saying, i think the main reason we are not seeing eye to eye is that for some reason, some of you feel that even if the goods and services were advertised and priced in the local currency (mxn peso) that those same advertised prices would change all the time based on the fluctuating usd rate. and my question is simple.....why would that happen ?
of course businesses can choose to do this but how does that make any sense ? any business should price their goods and services in their own local currency. and the only thing that fluctuates is the cost to the buyer. and that cost is based on what ever their currency is worth at the time.
here is an odd example.....in ontario canada we have wilderness outfitters who primarily deal with americans coming up here for hunting and fishing. some of those outfitters price their services in usd. why ? because their clientele is 95% american. that's why. do i get that ? yes i do. but whether anyone agrees if that is ok to do or not, the fact is, that if the cdn / usd exchange rate changes, that will either cost me more or less as a canadian. and that is wrong. my cost should be consistent. the americans cost is what should go up or down based on the currency exchange at the time.
so if that same outfitter was to price their services in canadian dollars, do you think they would change that advertised price if the usd rate changes ? why would they do that ? that makes no sense.
the reality probably is that many coz businesses deal in usd to pay many of their expenses for some reason. as some have mentioned, shops will at times pay staff for example in usd (i still don't understand that unless they are actually a registered u.s. company), and perhaps they may also pay other daily expenses in usd as well. so by pricing / charging in usd they keep a consistency in their cash flow. i can understand why they would do this in this case.
but the fact remains, that if they were pricing goods and services in pesos, the cost to "ALL" foreigners will go up and down according to the exchange rates. that is fair. that is reality. all we are saying is that from a canadian stand point, it does not seem fair that the american cost stays constant while ours is changing radically. if shops want to do this, that is obviously their prerogative. but from our view point (and ONLY OUR VIEW POINT) this seems unfair.
like everyone else here, i eat at many different local restaurants on coz and the mainland. i cannot speak for everyone's experience, but i see menus priced in pesos, NOT usd. what i do see is that the restaurant sometimes adds a second row of prices for the usd and is always adjusting the usd price (NOT THE MXN PRICE) on the menu to make it easier for the majority of travelers (who are from the u.s.) to easily understand what it costs if they choose to use usd.
what i do not see is the other way around. i do not see menus priced in usd and then see the local mxn prices being adjusted up and down according to the exchange rate that week. that would make no sense at all.
if others have a different experience with this example pls share. but this what i see when i travel.
even in st maarten for example. they have 2 prices on menus many times. the local currency and the usd price. the local currency stays the same (obviously it changes at times due to inflation) and the usd price is adjusted and added to the menu to make it easier for americans. same example, different country.
why in gods name would my favorite restaurant on st maarten price their meals in usd and then change the local price as the exchange rate changes ? that would make no sense to do it there, and it makes no sense (to us at least) why they would do that in mexico.
last example. is anyone following the real estate market in playa ? well i have. some properties are priced and advertised in usd. why ? because the owner is most likely american and wants a consistently advertised price to a market that is primarily american.
other properties are priced in pesos. so what does that mean to a canadian buyer ? it means that the usd property is now not affordable, while the peso property is now cheaper.
it means that the usd property costs an american the same, while the peso property is now cheaper for them as well.
what i do not see, is the properties priced in pesos all of a sudden being increased. that makes no sense !!
peace out. lets all pray in our own way that the violence in your county stops. we are sad and sickened here to see what has happened and what continues to happen. i hope you all are safe and well.
