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The Peso is Tanking

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A little historical perspective:

Since 1910 to this day, the Mexican peso has devalued 7,500%
President Party Years Exchange rate at beginning at end Difference  % devaluation
Lic. Luis Echeverría Alvarez PRI 1970–1976 $12.50 $22.69 $10.19 82%
Lic. José Lopez Portillo PRI 1976–1982 $22.69 $150.29 $127.60 562%
Lic. Miguel de la Madrid Hurtado PRI 1982–1988 $150.29 $2,289.58 $2,132.71 1552%
Dr. Carlos Salinas de Gortari PRI 1988–1994 $2,289.58 $3,410 $892.00 36%
Dr. Ernesto Zedillo Ponce de León PRI 1994–2000 $3,410 $9.360 $6.08 180%
Lic. Vicente Fox Quezada PAN 2000–2006 $9.360 $10.880 $1.45 15%
Lic. Felipe Calderón Hinojosa PAN (2006–2012) $10.900 $12.50 $1.60 15%
Lic. Enrique Peña Nieto PRI (2012–present) $12.50

$18.4350 Mid-market rates: 2016-02-02

 

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22 hours ago, More Liana said:

A barman or a barmaid receives a salary.  An artisan does not.  Neither is inferior nor superior to the other.

Agree completely. I was responding to the post that seemed to be value an artist above a barman. We agree.

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22 hours ago, Mostlylost said:

If their cost to re-order has gone up they can raise their prices when the new order arrives. Their wholesale cost does not go up on the inventory they have. If they raise the price on existing inventory it is a larger profit. Rarely will they drop their prices on high cost existing inventory when their buying cost goes down, until they receive new inventory at the lower cost. Has nothing to do with staying or going out of business. 

 

I have purchased solar panels wholesale here from a very large national distributor.  The price is in dollars, because they buy from China in dollars.  Last time the peso was suffering I waited 10 days and paid 10% less in pesos. So I would suggest again that if a Mexican whose money is in pesos is considering buying solar they should wait a couple of weeks to see what happens. Most of the Mexicans I know are fully aware of this.

Sounds good theoretically but if they don't have the cash to pay for the reorder and their supplier doesn't give credit, they're screwed.

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It is only since 1994 I believe that the Peso has been allowed to float with the market.  Hence that period to date is the most significant part of the history cited above.

 

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20.54 today at the Visa currency exchange site. It had been just under 20 all weekend with the WSJ closing rate of 20.92. Mostly due to Friday being a bank holiday in the US.

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On 11/14/2016 at 9:21 AM, pappysmarket said:

Sounds good theoretically but if they don't have the cash to pay for the reorder and their supplier doesn't give credit, they're screwed.

Isn't theory. It is doing business. If you don't have cash to reorder you don't deserve to be in business. That is why 95% of small business fail in the first year.  I don't think any of the solar companies that I know in GDL are in that situation. They work on a good margin. 

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Actually I agree. If they don't have the cash they don't deserve to be in business. So they check to see what their competitors are doing and if they have raised prices then it's a slam dunk. If not then they have a decision to make. Been there and done that.

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On 11/11/2016 at 5:17 PM, More Liana said:

IMHO, if you try to bargain with the artisans you are doing them a big disservice.  Prices on fine Mexican crafts are extremely inexpensive compared to the skill, craftsmanship, and countless hours that are needed to create extraordinarily beautiful items.  If you ask for a discount, you might well be given one--the artisan needs to sell her or his wares.  But if you look closely, you might well see a crestfallen look--please understand that the amount you pay to an artisan for X item more than likely means far more to the artisan than it does to you.  Many artisans depend on events like the Feria for a great percent of their annual income. The trend now among savvy buyers is NOT to bargain:  pay the price, support a family which has substantially less income than you do, and enjoy your purchase. 

Amen!

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