Happy Independence Day Mexico!

Today Mexico celebrate's it's independence day!  The celebration happens tonight at midnight, when President Felipe Calderon gives el grito (shout for independence) "Viva Mexico!".  The celebration will be extra special this year because it is the bicentennial.

Doing Business in Mexico: Forming a Bond with your Mexican Business Partners

Note: Business Partner here means anyone you do business with in Mexico, potential client, buyer, supplier, etc.

One of the main differences that people notice when they first come to Mexico to do business is the way that business is conducted.  We've talked about the 4 hr lunches, but what is really behind the lunchis the personal relationship aspect of doing business. 

I remember when I was looking for a job and interviewed for a Latin American Sales position (mainly Mexico).  The manager went on and on about how great the job was because I wouldn't have to travel, I'd be able to do everything via phone.  I sat back and thought "I may not be traveling, but I also won't be making many sales."  The fact of the matter is that putting a face to a name in Mexico is crucial.  I don't care if you have the greatest product in the world and people are clamoring for it...you still need to meet your potential Mexican business partners in person.

Relationships are built on trust and it is very difficult to trust someone you have never met.  It happens in the US all the time - deals are made over email and the phone - but do not expect the same to work in Mexico.

FAA Downgrades Mexico's Air Safety Rating

With the recent bankruptcy of Mexicana, Mexico and it's airlines have been in the news quite a bit recently.  A story that flew more under the radar is the fact that the Federal Aviation Administration (or FAA) recently downgraded Mexico's Air Safety rating. 

What does that mean for airlines and passengers flying in and out of Mexico?

• US carriers have suspended code sharing with Mexican partners (for example, if you were flying on Aeromexico and had frequent flyer status with Delta, you used to get miles for your Aeromexico flight.  Not anymore.)

• Additional routes to Mexico will not be added by US carriers.

• Travel between the two countries will be even more limited due to the Mexicana problem and the decreased routes.

It's important to note that the regulations are based on international air safety standards and not US based standards.

Mexico is currently taking steps to regain its air safety rating, so hopefully this will a temporary setback.

Currency Update: Mexican Peso

The Mexican Peso is finishing off the week at $12.95 MXN to $1 USD.

Some important news/events that affected the Mexican economy this week:

Mexico consumer prices rose .28 percent in August
Obama spoke out and said Mexico's drug war is not comparable to Colombia in the 80s
"La Barbie" was captured last week, which inspires confidence in Calderon's battle against the narcos
Mexico continues to draw manufacturing contracts away from China
Both auto output and exports were up in August compared to last year

The Cost of Living in Mexico for Expats: Keeping it real

The cost of living in Mexico for expats is a topic that has been covered on a number of websites, but today I'm going to give you my two cents and keep it real.

People often ask "How much money do I need to live comfortably in Mexico?" and my answer is always "It depends."  It depends because "comfortable" is so subjective.  Is it important that you have someone to cook for you 7 days a week or are you fine cooking for yourself (and your family if that's the case)?  Do you want to live in a secure building in a nice area with other expats and Mexicans or do you want to live in a place where you are the only expat for miles and you can interact with the locals?

Many people have the misconception that Mexico is cheap.  While it is less expensive in many aspects, it is by no means cheap. 

MORE EXPENSIVE IN MEXICO:

Electronics
Cell phone service
Land line service (Thanks Telmex! Mexico has the highest phone rates in the world behind Iraq)
Clothing* (yes, you can find cheap clothing at the tianguis (farmer's market type setup) but I'm talking about walking into a store and buying something)
Gasoline
Magazines in English (expect to pay over $6 USD)

LESS EXPENSIVE IN MEXICO:

Produce
Most restaurants
Medical services (doctor, dentist, etc)
Taxis/public transportation
Haircuts (at MOST places)
Utilities (gas, water, electricity)
Maid service
Drivers (you can hire someone to drive you around so you don't have to deal with traffic)

COMPARABLE:

Rents in big cities (ie, Mexico City, Guadalajara, Monterrey)

Mexico Business Etiquette: Gift Giving

When doing business in another country, one of the questions that most often comes up is whether or not it is appropriate to give gifts.  In the United States, people have become very wary about giving gifts because they may be misinterpreted or companies may have strict policies against giving and receiving gifts.  I have not found that to be the case in Mexico.

One of the great things about doing business with people from a different country is being able to share your differences and similarities. 

So what would be considered an appropriate gift?

Food, alcohol, something for their office with your company logo, a coffee table book, or something that is hard to find in Mexico.
Let's say you are from California - a bottle of California wine that is not sold in Mexico would be seen as a good gift. 

It is also common practice in Mexico to send a Christmas card or small Christmas gift to your clients (remember Mexico is 90% Catholic). 

I think the most important thing to remember here is that in Mexico it is highly unlikely that you will "offend" someone when bringing a gift, it might even strengthen your business relationship because it shows you are making an effort to strengthen your interpersonal relationship which is KEY in Mexico.

Social Media Event: Tweet to be heard in Puerto Vallarta

These days everyone is buzzing about social media.  There are many companies that have switched their focus entirely to social media and use their website mainly as a static site with basic information.  The real news, hot content, etc, can be found on their blog, Facebook, or via tweets on their Twitter account.

For anyone interested in social media in Mexico, I highly recommend checking out the "Tweet to be heard Conference" taking place in Puerto Vallarta on October 21-24th at the Hotel Villa Veredero.



Some of the topics to be covered at the conference include:

**Getting Found

**The Art of Engagement

**Creating a Community

**Promotion of your Brand or Service

**Viral Marketing

**Lead Generation

**Twitter/Facebook Integration

 
Social media is really the main source you as a small business owner or entrepreneur should focus on.  For one thing, it's free.  Not only that, but you have the opportunity to be seen and "heard" by people you may not normal be able to reach.  As your circle of influence on Facebook or Twitter expands, your business will grow. 
 
For more details on the conference:
Vallarta Escapes - Tweet to be heard Conference