BajaNomad

Exchange rate rip offs

slimshady - 2-9-2009 at 01:28 PM

I frequent the Los Cabos Region and it gets me when I go to some restaurants and the menu is in dollars or the hotel rates are in dollars. I stay away from those places. The owners are trying to keep prices up in world economy that does not support such prices and that will only last so long until people start wising up.

BajaGeoff - 2-9-2009 at 01:30 PM

With tourism being down like it is, I am sure they are just trying to make ends meet and provide for themselves. I don't necessarily agree with it, but I understand why they are doing it.

DENNIS - 2-9-2009 at 01:32 PM

Spend pesos and vote with your feet. If you're being screwed, you have nobody to blame but yourself. Make note of who trys to screw you and do your best to let the world know about it just like you did here. Thanks for that.

[Edited on 2-9-2009 by DENNIS]

Taco de Baja - 2-9-2009 at 01:52 PM

It's like the gas station owners up here in the states. The price are rising daily by several cents, despite the continued falling price of a barrel of oil. And there is nothing to do but suck up to the gouging b/c they all raise prices. hoars. :fire:

karenintx - 2-9-2009 at 02:00 PM

No rip off for us...called Tel-Mex USA on Feb 5. Put $100 USD credit on our account and was given a 14.41 exchange. We were happy!!!

lizard lips - 2-9-2009 at 02:21 PM

Just don't use the services of any of these people who try and gouge you. Plain and simple.

I was in Cabo back in 2001 when hurricane Juliette hit and because the bridge was out going to the airport we were at the will of the store owners who jacked up their prices on almost everything and got away with it. I was there last month and went into a store where the same guy tried to sell me a small bottle of water for 30 pesos where just before the hurricane it was selling for 8 pesos. I told him I remembered what he did and he said he lost a lot of customers because of it. I told him I was pleased and went on my way.

Just don't use these peoples services any longer................!!!!!!!!!

JESSE - 2-9-2009 at 02:38 PM

The only ripoff i am aware, is trying to pay in dollars at the Gas station in Vizcaino. Last time i was there, the guy said he would take my dollar at 10 to 1 AFTER he had pumped gas.

oldlady - 2-9-2009 at 03:49 PM

I don't agree that the "whole beauty" of traveling to Mexico is an attractive exchange rate relative to what it was last summer. However by my calculations, you may have paid the 200 when the rate was 9:1, and thus you paid less in US dollars at the 280 today.

That being said, I have noticed an increase in prices here, and while offset for me, by the current exchange rate, it is not offset for a Mexican who is not drawing his income from a US based ATM.

La Paz is absolutely beautiful now. Blood is not running in the streets. The people are as friendly, the beaches are warm, the food is wonderful (especially at Tres Virgenes) and the scenery spectacular. But if the whole beauty for a traveler is simply the current, and possibly very temporary attractiveness of the exchange rate, perhaps a vacation in California to help the furloughed state employees is a better idea.

[Edited on 2-9-2009 by oldlady]

ckiefer - 2-9-2009 at 04:10 PM

The only way to avoid this is to buy pesos at a bank that gives you the rate that gives you the best rate, request your menus or prices in pesos upfront. If the menu or price is not agreeable to you, find another place to shop/eat. Carry a small amount of pesos in one pocket, don't flash your wad, negotiate, or you can always take your business elsewhere.

We are all living and learning. Me too. :spingrin:

elizabeth - 2-9-2009 at 04:41 PM

I fail to see how adjusting prices to match the exchange rate is a rip-off or a gouge. The peso is devalued for Mexicans as well as North Americans.

The Gull - 2-9-2009 at 04:45 PM

Quote:
Originally posted by elizabeth
I fail to see how adjusting prices to match the exchange rate is a rip-off or a gouge. The peso is devalued for Mexicans as well as North Americans.


Must be some kind of disturbance in The Force around Stinson Beach????????????????????????????????????

Timo1 - 2-9-2009 at 04:47 PM

Damn....what a bunch of cheapoes...your bank rapes you worse on exchange than the people you "love"

DENNIS - 2-9-2009 at 04:48 PM

Quote:
Originally posted by elizabeth
I fail to see how adjusting prices to match the exchange rate is a rip-off or a gouge. The peso is devalued for Mexicans as well as North Americans.


The peso hasn't been devalued in the Mexican economy. The dollar just buys more of them. That would hurt a peso spender if he/she had to buy imported items but, the domestic items are the same, given for normal inflation.

The Gull - 2-9-2009 at 04:50 PM

Dennis,

There is a fold in the universe around Stinson Beach. It causes the peso and dollar to remain constant.

DENNIS - 2-9-2009 at 04:55 PM

Quote:
Originally posted by Timo1
Damn....what a bunch of cheapoes...your bank rapes you worse on exchange than the people you "love"


Not quite. The extremes we hear of here, 10 to 1 when the true rate of exchange is 14 to 1 is, as you can see, a difference of 40%. I sure hope I never see that kind of abuse from my bank.

DENNIS - 2-9-2009 at 04:56 PM

Quote:
Originally posted by The Gull
Dennis,

There is a fold in the universe around Stinson Beach. It causes the peso and dollar to remain constant.


Thanks Gull. I live and learn.

Bajahowodd - 2-9-2009 at 05:00 PM

Dennis is right statistically. But there is human nature to consider. A 40% reduction in wealth may cause people to raise prices for goods and services. Mexicans providing services and selling goods do not do so in a complete vacuum owing to the world economy and inter-connected communications. So, in theory, i agree. But in practice, it may be put to the test.

DENNIS - 2-9-2009 at 05:15 PM

Quote:
Originally posted by Bajahowodd
So, in theory, i agree. But in practice, it may be put to the test.


Well, what are we talking about here? For the most part on this board, we discuss a home-grown commodity. Food. Why should the price of beans and rice, grown in Mexico, be pegged to what the dollar is worth on the world market?
I don't know of anybody who goes to Mexico to buy Pendelton shirts or Schwin bicycles. Those whom I know go for the beer and fish tacos and a space to sleep in. None of this is influenced by the worth of the dollar except in the minds of some opportunists who want to enhance their profit margin.
I don't care what they charge. If I don't like the price, I don't buy but, they won't be able to tell me that the price of an enchilada went up 40% because the peso buys fewer dollars.

msteve1014 - 2-9-2009 at 06:07 PM

(I don't care what they charge. If I don't like the price, I don't buy but, they won't be able to tell me that the price of an enchilada went up 40% because the peso buys fewer dollars. )


I think that is the bottom line. Or change your dollars into pesos somewhere else, or keep your dollars,or stay home and spend your dollars, but quit crying about it.

DENNIS

BajaRob - 2-9-2009 at 06:12 PM

Thank you, you get it. Most all that we buy from here is purchased in pesos and the value of the dollar has nothing to do with what we charged. The greed of those who would try to opportunize on the exchange rate will sink them.

BajaGringo - 2-9-2009 at 06:20 PM

More than anything I just think it is a sign of the times. Tourism is down so business is down. They are just trying to make up the difference any way they can. You can get mad at them for trying but we are the idiots if we pay it. With all the wealth of information out there today on the current rate of exchange, you should know better. I keep saying it - exchange your dollars for the best rate you can find and pay in pesos. You will come out ahead this way almost every time...

The Gull - 2-9-2009 at 08:26 PM

Quote:
Originally posted by DENNIS
Quote:
Originally posted by Bajahowodd
So, in theory, i agree. But in practice, it may be put to the test.


Well, what are we talking about here? For the most part on this board, we discuss a home-grown commodity. Food. Why should the price of beans and rice, grown in Mexico, be pegged to what the dollar is worth on the world market?
I don't know of anybody who goes to Mexico to buy Pendelton shirts or Schwin bicycles. Those whom I know go for the beer and fish tacos and a space to sleep in. None of this is influenced by the worth of the dollar except in the minds of some opportunists who want to enhance their profit margin.
I don't care what they charge. If I don't like the price, I don't buy but, they won't be able to tell me that the price of an enchilada went up 40% because the peso buys fewer dollars.


I haven't seen the price of Tequila in the US drop by 40%. Hmmmm, seems harsh.

Dennis, is the price of cocaine dropping by 40% in the US?

Those two items constitute most of the GNP of Mexico.:lol::lol::lol:

Dave - 2-9-2009 at 08:52 PM

Quote:
Originally posted by BajaWaverunner
then you get these yahoos (yahores) that try to beat the system and base their prices in dollars -


It's not illegal to base your price in dollars. The majority of my customers are gringos so my prices are in dollars. I sell a Corona draft beer for a dollar or its equivalent in pesos. No harm...no foul.

Santiago - 2-9-2009 at 09:18 PM

The reverse is true also: last month I was in Sinaloa and bought a tshirt that they wanted $10 'merican and I had pesos so I asked how much in pesos and he said $100. Maybe 10-1 is just a common out-in-the-boonies rate?

Don Alley - 2-9-2009 at 09:34 PM

Well, in my little corner of folded space and time, prices and values fluctuate in a world market. The price and value of, say Mexican grown beans or corn can fluctuate with the world price. The growers and distributors are not going to accept devalued pesos at the old prices-they want to buy foreign, imported goods and they need more pesos per bushel to maintain their buying power.

Sure, their are some giving a poor exchange rate. And it's frustrating to see our perceived monetary advantage derailed by goods and services here priced in dollars. But one cannot divorce the falling value of the peso from inflation. The peso's fall is accelerating inflation of domestic goods and services along with imports. Between dollar pricing and inflation, gains from the exchange rate are limited and will dissipate over time.

elizabeth - 2-10-2009 at 09:57 AM

Quote:
Originally posted by DENNIS
Quote:
Originally posted by The Gull
Dennis,

There is a fold in the universe around Stinson Beach. It causes the peso and dollar to remain constant.


Thanks Gull. I live and learn.


Gee, Gull and Dennis, thanks for such a thoughtful response.

Thanks, Don, for some actually relevant comments and information.

The Peso is Dollar-driven

Mulegena - 2-11-2009 at 01:24 PM

Quote:
Originally posted by elizabeth
I fail to see how adjusting prices to match the exchange rate is a rip-off or a gouge. The peso is devalued for Mexicans as well as North Americans.


In practice the Peso is Dollar-driven. That's just a fact.

Back in the early 1980's the peso devalued tremendously overnight and went on a rollercoaster ride for awhile. Mexican businesses simply re-set their prices daily, based on the fluctuating exchange rate, for an accurate-- and fair-- price.

That being said, try to use pesos down here rather than dollars. If you do find yourself with only US currency, as happened to me a couple Sundays ago, don't accept a blatantly unfair exchange rate. Whip out your calculator and strike a fair deal.

Don't dis a businessperson in Mexico from basing their price of goods and services on the dollar, nor should you, the consumer, be either greedy or naive.

Sharksbaja - 2-11-2009 at 07:48 PM

Good take Mulegena, sage advise.

Hooker33 - 2-12-2009 at 07:44 AM

Lattitude 22 yesterday changed their menu from Pesos to dollars and if you pay in Pesos it will be at 12 to 1. I am surprised the Mike would do this to his long time customers. I'm rethinking my place of drinking and eating. Maybe Tanga-Tanga or Baja Cantina.

EnseNADAslim - 2-12-2009 at 11:29 AM

Quote:
Originally posted by BajaWaverunner
I paid him 200 pesos to have a picnic on his beach last summer, and yesterday I paid him $280 pesos for that same picnic.

These guys are a disgrace. I am not bitter. by the way, that guy in Puertecios is already a price hoar for charging 20 bucks just for a palapa.


I did the math,,,,what's the difference, you still only got charged $20.00 US? You actually got a good deal if you ask me, no increase in one year?!?!?!?! People can tend to gauge stuff on what a restaurant charges because it seems by reading this thread that this is where most of you eat. Living down here and operating a dorm facility I can tell you that food purchased in the markets is not cheap by any means. Every year we too must do what we can do to bring food to the table for our guest and sometimes.
There are those out there that are totally taking advantage of this situation, but just carry your calculator with you and consistently ask them what their exchange rate is.
Exchange your money at the Bank, pay in pesos, and give your business to those that are honest.

Bajahowodd - 2-12-2009 at 11:44 AM

Hooker-
I'm curious. I've been a customer off and on at Mike's for many years. Although his place out behind the power station is really neat, I had to wonder if he risked a drop-off in business because of a less conspicuous location. Aside from the locals, alot of tourists staying at the hotels on Medano Beach used to walk to his old location. Tourist season is going to peak in about a month. How are the crowds? And does Latitude 22 appear busy? And, Baja Cantina does offer much more opportunity for people watching.

dtbushpilot - 2-12-2009 at 02:32 PM

Seems to be a lot of whining about not getting a bank exchange rate in the boonies. Why should they be willing to take your foriegn currency in the first place. How many of you have spent pesos in the US? I know there are a few stores at the border that will but try spending them in Idaho or anywhere else 10 miles from the border.

If you don't have currency from the country that you are in you shouldn't assume that you can buy anything regardless of the exchange rate. When I don't have pesos for a purchase (almost never) I take the exchange rate offered. If I don't like it I go get pesos......dt

What's your complaint?

Dave - 2-12-2009 at 06:37 PM

Quote:
Originally posted by Hooker33
Lattitude 22 yesterday changed their menu from Pesos to dollars and if you pay in Pesos it will be at 12 to 1. I am surprised the Mike would do this to his long time customers. I'm rethinking my place of drinking and eating. Maybe Tanga-Tanga or Baja Cantina.


12-1 is a great deal. I wouldn't take 12 or even 13-1. Fair would be 14.25-1. Would you rather him give you a sweetheart deal an go broke on the exchange rate? What's wrong with you people?

Hooker33 - 2-13-2009 at 08:26 AM

Dave,
My complaint is that I spend nearly the entire year here in Cabo and use only Pesos in my adopted country. If an establishment is having financial difficulty then, by all means, raise your prices to establish your expected profit margin. I have no problem with price increases but do it in Pesos so that we don't have to bring a calculator to lunch to convert the dollars on the menu to the Pesos in my pocket. (With all due respect) Lattitudes business in mostly old time customers following Mike to his new place. He does not get much "off the street" business as he did when he was down town .

oxxo - 2-13-2009 at 08:59 AM

Quote:
Originally posted by Hooker33
Lattitude 22 yesterday changed their menu from Pesos to dollars and if you pay in Pesos it will be at 12 to 1. I am surprised the Mike would do this to his long time customers. I'm rethinking my place of drinking and eating. Maybe Tanga-Tanga or Baja Cantina.


I don't get your point. If Mike has a menu item for US$10 and you only have pesos, it will be 120p. But I buy my pesos at the bank yesterday at 14.4 to 1, so really the 120p I paid Mike is really only costing me about US$9. What's arong with that deal? I think Mike is doing you a favor.

Go to Tanga or Baja Cantina and buy something on the menu for 120p and pay for it in dollars. They will ask you for US$12.

So I can spend 120p at the Roadhouse and pay the equivalent of about US$9 or I can go to Baja Cantina and spend 120p and pay the equivalent of US$12.

What makes more sense to you?

gnukid - 2-13-2009 at 09:33 AM

Quote:
Originally posted by msteve1014
(I don't care what they charge. If I don't like the price, I don't buy but, they won't be able to tell me that the price of an enchilada went up 40% because the peso buys fewer dollars. )


I think that is the bottom line. Or change your dollars into pesos somewhere else, or keep your dollars,or stay home and spend your dollars, but quit crying about it.


Well said, there are some crazy people here, gringos too who, one store owner a marine shop in La Paz has 4 prices for each item, one in pesos and one dolllars on the product and two other prices at the register. He says he has to conform to profepa or something so he has low prices on the items for tax purposes and the real price is marked in the computer when you buy it pegged at todays dollar plus importation blah blah, of course this results in prices about 30-40% more when you buy. If you question his far fetched logic he throws a fit and starts swearing and says everyone accepts it. This final strategy seems consistent with the ripoffs, the part where they throw a big fit when you question the outrageous pricing.

I am being very careful about my exchange rates and costs and where I buy and I am saving quite a bit. Its nice to be able to buy a case of 24 media pacificos for $160 pesos and share them with neighbors as opposed to paying as much as double or triple at some rip off store.

We are also enjoying searching for fruits and supplies in rancheros, finding perfect key limes and and choosing bamboo and rocks from the ranches for our projects. We cook for groups and share too, Seems like bartering and cooperation among friends is a great way to enjoy the crisis together.

Calculator?

Dave - 2-13-2009 at 11:50 AM

Quote:
Originally posted by Hooker33
I have no problem with price increases but do it in Pesos so that we don't have to bring a calculator to lunch to convert the dollars on the menu to the Pesos in my pocket.


The establishment should post the exchange rate and do the conversion for you. It should be on your bill. One price for payment in pesos and another for payment in dollars. Simple.

Bajajack - 2-13-2009 at 12:01 PM

When are you guy's gonna learn, you ain't their buddy's, you're nothing more than a walking wallet or purse.

It's their duty to get as much as they can.

Bajahowodd - 2-13-2009 at 12:19 PM

Well said, Jack. And as a customer, one can always turn around and walk out. I think it's called capitalism. Vendors and customers aren't fraternity brothers.

Dave - 2-13-2009 at 02:43 PM

Quote:
Originally posted by Bajajack
When are you guy's gonna learn, you ain't their buddy's, you're nothing more than a walking wallet or purse.

It's their duty to get as much as they can.


This thread is about exchange rip offs. I have yet to read an example of an unfair exchange rate. It's now around 14-1. Anything less that that is flat giving away money. Any merchant who doesn't understand the concept is doomed.

BajaGringo - 2-13-2009 at 03:08 PM

Living in Baja, I like to get the best rate I can and always recommend to make your purchases in pesos, not dollars. I was also reminded that it works both ways the other day at a mini-market in Chula Vista, just north of the border where I overheard a market owner give an elderly Hispanic woman 20:1 to pay for her purchase in dollars with pesos. He just told her that it was a market - not an exchange house or bank. The old woman knew it was a bad deal but also knew she didn't have enough dollars in her purse for the purchase and just accepted it.

It happens...