How not to get Gringoed… ????

Jan 16-25 Playa Caracol, Panama

“I don’t charge by the hour; I charge for what my work is worth – good day!”

Greetings from “Middle Earth”.

For all of you have been to Mexico and points south, one of the things we all experience and take pains to avoid, is that of being “Gringoed”.

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Meaning, we all hate it when we get charged a lot extra for something the locals would pay much, much less for; all because you are perceived as being able to pay a higher price.

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We had a few small chores that needed completing in our condo here, that required the services of a handyman. We estimated it would only take 2-3 hours tops. When we received communication back from someone recommended by the property manager, we were thinking, great, someone nearby, so should be good.

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But when he quoted us a figure of $135-$150 bucks (USD by the way so close to $200 CAD), my wife quickly quipped that a private driver didn’t even charge that much for 4-5 hours of chauffeuring. To which the fellow replied that he didn’t charge by the hour…..

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That’s all fine and dandy and not a bad ploy to use, when and if you are an extremely skilled person in your field. Handyman in Panama? I don’t think so. Especially when the average daily wage is close to $35 in total.

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So, we used our other connections, found an expat living close by – got the job done for half the price.?

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By the way, I do not condemn the fellow for his pricing strategy. I get the feeling he has been able to do this for some time in this area – there being enough people who are either too wealthy to worry about it or too busy to shop for another contractor.?

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I mean, I coach clients all the time on how to leverage their skills and package their services in such a way that what they earn per hour has no relevance or effect on what they can charge. What is important is the perceived value of what they deliver is abundantly more than the cost paid by their clients.

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Pricing and packaging of one’s products and services, however, are but 2 strategies you can implement. There are 10 more basic ones, plus another 28 more advanced. ?

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Until next week,

Stay healthy and focus on profit!?

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- Hugh? The “Profit Accelerator” Expert

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