In our series of articles about essential skills for expats in Mexico we examine five essential skills any budding expat considering Mexico should develop, whether the move is for living, working, or retirement—full-time or part-time.
In this third part of the series we explore the need to develop negotiating and bargaining skills, for use everyday.
Negotiation, trade, and bargaining are woven into the fabric of Mexican culture. In 1520, Hernán Cortés wrote to Emperor Carlos V of Spain describing Tenochtitlán as a city with “many plazas, where there are continuous markets and dealings in buying and selling”. These and other records show how Mexicans have been avid traders for many centuries.
Five hundred years later, whether you’re buying a piece of land, a home, a car, or a kilo of limes at the local market, you will need to exercise some negotiation skills, lest you may pay more, and possibly a lot more, than you need have.
How you negotiate (or bargain) will depend upon the precise situation you find yourself in. In most circumstances effective negotiation will require the use of Spanish —a notable exception being real estate purchases— so a basic conversational level of the language, as described in the first article of this series, is a prerequisite.
There are some places and situations where bargaining is not practiced in Mexico. These include the local supermarkets, department stores, and gasoline stations. Bargaining is not generally practiced at tienditas (family-run corner stores) and it’s not practiced at pharmacies.
Restaurants and comedores don’t usually bargain, either; although they might agree to a large group discount or special offer if you talk with the manager or owner before your intended arrival.
Situations where bargaining is practiced (and sometimes expected) include shopping in open-air food markets, flea markets, art and craft markets and fairs; and buying from ambulant vendors on the street and on public transport.
If you board a local taxi cab that isn’t metered or doesn’t charge a zonal fee, you should always negotiate your price beforehand. Many people are now using App Cabs which offer fixed pricing for fares in advance of the journey.
More formal situations where price negotiations are often entered into include the purchase of a vehicle (new or used), the purchase of jewelry or very fine clothing from a specialist suppliers, the bulk purchase of almost anything from a trade supplier, hand-made furniture bought locally, as well as land and property—whether for purchase or to rent.
When you have lived in Mexico for a while —and especially when you have lived in one place in Mexico for a while— you’ll notice that the prices asked for many local things you buy every day can be very elastic indeed. There are prices for ‘locals’ and prices for ‘tourists’—whether the tourists are foreign or Mexican.
Traders everywhere are alert to an opportunity. They will always try to make hay while the sun shines. With some experience of living in a place, you’ll learn what prices should be for things like a taxi cab ride, a kilo of meat or fish, a bagful of oranges, a hat or walking stick, a stack of fresh corn tortillas, and so on.
How? You start talking with people locally, you hear and see what others are being offered and gradually you get to know. Eventually, you might become sufficiently experienced and not have to ask the price for something you buy regularly; —for example, the fee for a local cab ride to a regular destination— you know what it should be and hand over that amount of money.
The acid test is to hand over a coin or bank note that requires some change in return and see how much comes back. In fact, this level of local economic intimacy is a gauge for you—the more you buy without the need to ‘negotiate’ the price, the deeper you have become entwined in, and part of, the local community.
Resources for bargaining and negotiating
Learn more about Mexican culture and traditions, including about negotiating, bargaining and shopping in Mexico:
- Guide to social etiquette and local customs
- Latest articles about Mexican culture and local customs
- Learn about tipping culture in Mexico
- Discover Markets & Shopping in Mexico
Next Article in the Series: Part 4 – Contacts & Networking
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