Food for thought about the island economy...
- Thread starter Christi
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cozcharlie
Contributor
Rick0001967 , If someone is offering a discount you are welcome to take it and no one is shaming you. Otherwise I certainly agree with Christi that asking for discounts is just rude at this point .
Trip break even on a 6 pack boat is somewhere around 2-3 divers depending upon how you amortize depreciation/maintenance , treat payroll etc (if you fully load everything you likely need more than 2 divers to break even , if you treat most of payroll as sunk maybe break even a little less than 2 divers on a variable basis but fixed salaries and maintenance have to come from somewhere sooner or later ). Obviously this varies from shop to shop, but if you go out on a boat with just two or 3 divers the owner isn’t eating well that night unless you are buying. Pemex certainly isn’t giving fuel away during the pandemic— fuel is obviously a variable huge cost and no discounts there . Under current Covid rules max is 3 divers on a 6 pack unless that changed in stage Yellow this week. They are just making a little variable profit if they send out 3 divers at full rate. , if they each get a 20 percent “Covid discount “ that little variable profit essentially disappears It is the trips with 4 or especially 5 or 6 divers on a 6 pack where shops actually make more meaningful money to cover fixed costs and maybe a little profit —Covid essentially prevents them from having these truly profitable trips. They are just trying to scrape by until things hopefully get better next year.
As a friend of mine with a fishing charter service puts it: “ I’ve had no business for months, missed peak billfish season when most long-time clients come , many of my costs (Marina fees etc) just continued on at normal rates while I had no business (except fuel since I wasn’t going out), my trip costs for cleaning expenses etc are actually slightly higher during Covid , and now people want a discount for giving me the privilege of being on a boat with strangers all day who could give me a life threatening disease in country without that great of a medical system ? Some of whom refuse to wear masks even though local law requires it!.”. You can insert whatever stream of expletives you feel appropriate at the end of this paragraph, followed by my friend saying “No Covid discounts “
He may politely decline Covid discounts on the phone , but I can assure you what he says when the call ends isn’t polite
To add insult to injury, they (API Q Roo?) are trying to dramatically increase slip fees for many of the local boats in the marina around the first of the year. I always forget what the name is for the local side of the new marina (Marina Cozumel /Fonatur etc ). They are not really even talking percentages (20 percent etc ), more like multiples (2X, 3X)—though obviously multiples can be expressed as hundreds of percent. Like these small businesses didn’t have enough to worry about these days I am not certain to which operators/boats this applies, but it is a lot of them.
Trip break even on a 6 pack boat is somewhere around 2-3 divers depending upon how you amortize depreciation/maintenance , treat payroll etc (if you fully load everything you likely need more than 2 divers to break even , if you treat most of payroll as sunk maybe break even a little less than 2 divers on a variable basis but fixed salaries and maintenance have to come from somewhere sooner or later ). Obviously this varies from shop to shop, but if you go out on a boat with just two or 3 divers the owner isn’t eating well that night unless you are buying. Pemex certainly isn’t giving fuel away during the pandemic— fuel is obviously a variable huge cost and no discounts there . Under current Covid rules max is 3 divers on a 6 pack unless that changed in stage Yellow this week. They are just making a little variable profit if they send out 3 divers at full rate. , if they each get a 20 percent “Covid discount “ that little variable profit essentially disappears It is the trips with 4 or especially 5 or 6 divers on a 6 pack where shops actually make more meaningful money to cover fixed costs and maybe a little profit —Covid essentially prevents them from having these truly profitable trips. They are just trying to scrape by until things hopefully get better next year.
As a friend of mine with a fishing charter service puts it: “ I’ve had no business for months, missed peak billfish season when most long-time clients come , many of my costs (Marina fees etc) just continued on at normal rates while I had no business (except fuel since I wasn’t going out), my trip costs for cleaning expenses etc are actually slightly higher during Covid , and now people want a discount for giving me the privilege of being on a boat with strangers all day who could give me a life threatening disease in country without that great of a medical system ? Some of whom refuse to wear masks even though local law requires it!.”. You can insert whatever stream of expletives you feel appropriate at the end of this paragraph, followed by my friend saying “No Covid discounts “
He may politely decline Covid discounts on the phone , but I can assure you what he says when the call ends isn’t polite
To add insult to injury, they (API Q Roo?) are trying to dramatically increase slip fees for many of the local boats in the marina around the first of the year. I always forget what the name is for the local side of the new marina (Marina Cozumel /Fonatur etc ). They are not really even talking percentages (20 percent etc ), more like multiples (2X, 3X)—though obviously multiples can be expressed as hundreds of percent. Like these small businesses didn’t have enough to worry about these days I am not certain to which operators/boats this applies, but it is a lot of them.
Question for those living and doing business in Mexico;
If you are in town and see a scarf you like or need for the sun, do you just pay the asking price?
Not to completely disagree and I do get the point but are the operators not free to decline said negotiations?
At this time the operators can easily counter that for an American Coz is one of the very few places you are allowed to go, counter with an American surcharge.
If you are in town and see a scarf you like or need for the sun, do you just pay the asking price?
Not to completely disagree and I do get the point but are the operators not free to decline said negotiations?
At this time the operators can easily counter that for an American Coz is one of the very few places you are allowed to go, counter with an American surcharge.
cozcharlie
Contributor
Actually since you asked—in July I did buy a couple of souvenirs to take back to the states at the asking price. Guy nearly fell out of his chair , but I figured I might be the only customer he would have all day. I just considered it a charitable donation/tip like many others I have made during very tough times.
While I don’t like the game of haggling personally and if asking price is fair I just pay it, sometimes all you need to do is stand there looking at it and the cost drops into the comfort zone.
Something to be aware of is cultural contamination, it was pointed out to me by a Thai friend On a trip there to avoid insulting them by exclaiming that things are so cheap and giving over far to much extra in tips etc. it was also requested that we don’t directly tip the boat crew (this is partially a local thing because it will lead to everyone running to help the American over the locals, not that the average American diver wants a lot of extra attention but the Thai’s do. It pays to know the local customs.
lets also keep in mind the usd buys about 15% more pesos now compared to pre covid. so when a business offers a 15% discount off of a usd advertised price, they are still making the same amount in pesos that they did pre covid. (no i don't wanna reopen that can of worms)
that is not to say it is wrong, i say good for them (at least for right now). i hope the extra money helps. hopefully we will be able to come down soon. waiting for the canadian government to lift our mandatory 2 week quarantine.
that is not to say it is wrong, i say good for them (at least for right now). i hope the extra money helps. hopefully we will be able to come down soon. waiting for the canadian government to lift our mandatory 2 week quarantine.
morecowbells
Contributor
I was talking to a friend who rents out a house on Florida on Airbnb. He said that people are shameless in haggling for discounts or free nights. I think this issue is happening everywhere. There are so many great deals being advertised that asking for a discount would be tacky. I do wish that the ‘vacation negotiators’ would put their skill to use at some of the gas stations, taxis and aggressive sales people. Karma directed at those who exploit US tourist with BS charges, and up charges.
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