How to Avoid Being Gringo’d in Mexico: 9 Tips to live like an Expat in an Amazing Country
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Are you Gringo Priced in Mexico?
Disclaimer: At the time of this writing, I have been living in and moving about in Mexico for 5 months, and while I do not claim to be an expert, I have picked up on some tips, so you can do you best in navigating the landscape. Too, these tips, may not apply to ALL areas of Mexico as its a diverse culture, but generally speaking, let’s go! Update July 2024: I am back living in the USA.
First, A Little Background
Five months ago, late June 2022, I packed up my belongings and sold most of my possessions including my home since I needed a major change of not only pace but wanted to set out to experience life in a different culture. I moved to Ajijic, Mexico, even though I never visited the city beforehand. (I visited other areas of Mexico and fell in love with the people, the language, the culture, the country, the food, etc.).
I live in an Expat City
I moved to a city in Mexico, in the state of Jalisco, called Ajijic (pronounced Ah-hee-heek), and it’s a hot spot for North Americans and Canadians who live either 6 months out of the year (snowbirds), or who have relocated full-time.
What is Being Gringo'd (or Gringo-Priced?
Gringo’d is the concept of having to pay more for a product or service, or essentially being charged more due to perception of being a foreigner.
I know this topic is a bit sensitive, so I welcome your comments below as I discuss this topic..
In Mexico, there are prices Mexicans pay for a product/service, and there is a price, higher, that others may pay, typically to foreigners or even perceived foreigners.
When foreigners from North America and Canada travel to Mexico and purchase an item, many times the prices will be higher.
This article will attempt to provide tips, so you can pay the regular price, one that is not inflated.
The Practice of Negotiating
In the USA, the art and skill of negotiating, can make many uncomfortable. It’s rather rare to negotiate in the USA, really the main items to negotiate are salary, and the price of a vehicle, or unless you are an attorney…
The skill of negotiating isn’t really a learned habit for many, and Mexicans know this, so they use this knowledge to their advantage.
Tip: Just because you negotiate, doesn’t mean you value the product or service less, or that you are can’t afford it, it’s a dance in a way. It’s a fun way of interacting, with the owner of the product.
In North America, we are removed several times from the actual true owner of a product/service, In Mexico, you may be speaking with the actual owner, or the owner may be near by, who can truly negotiate with you. It’s a different culture, and it will take some getting used to.
There are Ebbs and Flows in Gringo Pricing
When I mention it’s a dance (above), the art and skill of negotiating a lower or more real price, has ebbs and flows in it.
Tip: I always ask how much a product or service, when there is no price marked, or even when it is labeled. Everything is negotiable in my opinion.
I will ask, Cuantos cuesto? (How much does it cost?)
Real Life Example: Every Wednesday in Ajijic, there is a local market set up. Vendors take over a particular street right in the heart of the city with booths on both side of the street, called a tianguis. I have been told by several, that there is no negotiating at this market and I can prove them wrong.
I wanted to buy some honey. Real-raw, local, organic honey. I was offered 80 pesos which is about $4 USD. There was no crowd at this particular vendor stand, just the owner, one other guy and me. I countered to 40 pesos and watched the owner react. He countered me to 50 pesos, but eventually I purchased for 40 pesos.
Know your Prices
When you first move to Mexico, or even visit for the first time, it can be challenging to learn local pricing on food etc. It will take a while to know what the local prices are. Not to mention there is a learning curve in the currency exchange as well as the actual currency in hand.
Once you have a comfort level reached with the currency, you will have more buying power and will have -up leveled your ability to negotiate a better price. This will take time.
If you live in an expat area, prices will be generally high, and the further you travel and visit from these areas, prices are much lower.
Another example. I visited Etzatlan, Mexico, a wonderful city, which I will write more about soon. I was able to pick up a coffee there for 8 pesos, this is a record for me. This is about 4 cents, USD.
Seize the Opportunity
One of the best ways to get the best deal is to be strategic. I find that I have a better chance to negotiate when there is not a crowd. I use this to my advantage and at the same time, I try to be discreet.
I know the owner wants to sell their product or service for the most, but at the same time, I do not want to be unnecessarily gringo priced, but want to pay local prices, too especially since I live in Mexico, and am not a tourist, or just passing through.
Do your Best to Learn the Language
When I negotiate a fair price, I do it in Spanish. If I attempt in English, then my changes of a successful exchange at local prices are drastically diminished. I will smile, be friendly, and do it all in the language of the people.
If you haven’t tried to learn Spanish, I highly recommend it. Not only will it help you to foster local relationships, but you will gain a comfort level in being able to navigate the beautiful country of Mexico.
Tell them you Live in Mexico (if you do)
This comes up a lot. It almost comes up at every encounter. I am gringo-priced a lot, even daily. I am prepared for it.
When the conversation is at a good point, and it’s usually after they tell me a price, I let them know I live in Mexico and that I am not a tourist. Then, they usually reduce the price.
The Process is Like Buying a Used Vehicle
You’ve got to be able to walk away.
It’s like the Kenny Rogers song, the Gambler, you’ve got to know when to fold. There will be another product or service available.
However the process is very much like buying a vehicle. In the USA, if you negotiate a vehicle, you typically are prepared to walk if you cannot get it for what your budget allows. The same in Mexico.
Another example. I recently went to Cabo San Lucas, and on the boardwalk there are many vendors selling you items. I wanted a hat, since it was hot and too sunny for my liking. I asked how much and was quoted 200 pesos, which is about $10 USD. I didn’t want to pay that much so I countered to 100 pesos, and after much back and forth, and me walking away, and stating I live in Mexico all in Spanish, he allowed it go for 120 pesos to which I agreed. Always negotiate.
Interact and Be Genuine
One of the draws to the Mexican culture so much, is the genuine spirit of authenticity. Mexican people for the most part are real, caring and something I was not used to.
Interact, be kind and genuine back. Yes, that’s it. This spirit of authenticity can be detected and it’s never a crime to be kind back. If you have the spirit to get all-you-can-get, this attitude can be detected, and may be one reason why the local/natives won’t budge on a price.
Learn the Art and Skill in How to Negotiate in Mexico
Negotiating in a foreign country will take practice. You will have to learn local customs, a bit of the language enough where you can interact back and forth, to be understood and to understand, the currency, the exchange rate and to be kind, non-abrasive, supportive of the local economy and culture, show respect and be genuine, all with each interaction.
Negotiating is not always about getting the lowest price on a product or service, it about engaging with the local culture. It’s embracing the differences head-on, as you learn the world does not revolve around the customs and culture to where you came from, but there is a world of people outside your comfort zone that are to be respected, appreciated for their skills and supported in their currency.
Have you tried to negotiate a fair, non-gringo’d price in Mexico? How are you adapting to local customs? Are you engaging with the local culture while you venture to this beautiful culture? What other tips do you have? Drop a comment below!
