Exchange Rates

[Christi]

So my question is this for @Christi and @Dave Dillehay : What is your cost basis? Is it Dollars or Pesos? Since you are in Mexico, shouldn't it be in Pesos? Then the Dollar amount would be whatever the current exchange rate gives. Or you pick your own exchange rate like the restaurants and taxis do.
It's easer to budget my trips when you put your costs in Dollars, but, again, I think it should be in the national currency. I someone wants to pay in dollars, use the exchange rate.

Personally I do everything in cash so I can go either way. I keep the 1% to 2% foreign transaction fee that many credit cards charge. (Now we'll get all of the Schwab and similar card users chiming in that their card doesn't charge a foreign transaction fee -- Not germane). Bottom line - You're in Mexico - Use Pesos.

Cheers -

The value of the dollar is the driving force behind 90% of our operating costs. Crew is paid based on USD, gas prices are driven by USD which trickles into everything else. Equipment purchases, tank purchases, engines, etc. etc. - all in USD - all imported either by us or a local vendor who then has a mark-up so he can make a profit.

If dive shops charged a fixed pesos rate, we would all soon be out of business.

 

[Christi]

I book my air, hotel, and dives in USDollars, and I tip boat crews in USDollars, then get Pesos for the rest. Funny, even tho I book my hotel in USD, they bill me in Pesos and I pay that way.

See, I take issue with this practice. If they are going to bill you in dollars, then they should give you the option to pay in dollars. All businesses can have an account in USD - I have both a USD business account and a MXP business account at Banamex. Otherwise, find out what the rate in pesos is ahead of time and confirm the hotel reservation in pesos.

 

[DandyDon]

See, I take issue with this practice. If they are going to bill you in dollars, then they should give you the option to pay in dollars. All businesses can have an account in USD - I have both a USD business account and a MXP business account at Banamex. Otherwise, find out what the rate in pesos is ahead of time and confirm the hotel reservation in pesos.

If I booked directly thru the hotel, I suspect they would quote Pesos. I book thru Hotels.com for reasons important to me, they quote USDollars on their search results, but the room is actually booked in Pesos.

They would accept USDollars, but it's cheaper to pay in Pesos.

 

[ReefHound]

If dive shops charged a fixed pesos rate, we would all soon be out of business.

Or change prices often which people would hate even more than paying in dollars. At least dive shops don't price spots on the boat like airlines price seats on the plane.

 

[MargaritaMike]

The value of the dollar is the driving force behind 90% of our operating costs. Crew is paid based on USD, gas prices are driven by USD which trickles into everything else. Equipment purchases, tank purchases, engines, etc. etc. - all in USD - all imported either by us or a local vendor who then has a mark-up so he can make a profit.

If dive shops charged a fixed pesos rate, we would all soon be out of business.

That was the question and you answered it. Your cost basis is in USD so you quote and bill in USD. Is that true for MOST dive Ops or just the "bigger" ones?

Cheers -

 

[Christi]

That was the question and you answered it. Your cost basis is in USD so you quote and bill in USD. Is that true for MOST dive Ops or just the "bigger" ones?

Cheers -

All of us - we have the same basic operating expenses. However, those of us with full time staff and who run legitimate legal businesses have the added expenses of the employment taxes, benefits, federal taxes, etc. etc. etc.