paying in dollars vs colones

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gpwoulux

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We all know that MP's raise their prices in colones when the exchange rate turns against them. For example, when the rate was 500, they charged 15,000 for an hour. That equaled $30. As the rate was moving up to 580's, they raised their colon price to 16, 17, and 18k to account for the difference.

I haven't been since October, but have they lowered their colon price since the dollar has dropped almost 15% in the past couple of months.

If the colon prices haven't dropped as the dollar did, then it makes sense to pay in dollars. I know most people say to pay in colones, but in this case, it may better to pay in dollars.

Anybody see any big differences between the MP's dollar and colon price?
 
paying in dollars vs colones

Keep on wishing. In the P4P business prices always go up but never come down. I bet they will soon tell you you cant pay in $ any more only Colones.. but we all know that after this summer the $ will come roaring back.. :P :P :P :P :P :P
 
paying in dollars vs colones

Orange,

In over 15 years, I have never noticed the MPs raising prices because of the change in the value of the colon to the dollar unless you are equating that to inflation here. The vast majority of the MPs here have not changed their prices in almost five years (during which time the exchange rate has been below 500:1 (489:1 I think it was) and as much as 587:1. A few have raised their rates by c1000 but others have lowered their rates also. La Mansion raised their price recently by c2000 which was their first price increase in over 6 years and does not cover Costa Rican inflation during that period nor the change in the exchange rate over that period. Relax raised their gringo price by c3000 "to cover the additional cost (overhead)" after doubling their space and rent. NF; The owner there will continue to raise the gringo price every few months regardless of the exchange rate as long as gringos continue to (as he says) be stupid and pay it!!! HLH has had one price increase in over 5 years and again it reflects the increase in inflation and increased overhead, not the change in the exchange rate. Maybe you see something I don't but that is just the way (MP pricing has nothing or very little to do with the exchange rate) I see it.

Also, living here, I pay for everything in colones except for my rent!! The owner pays her morgage in $$$ so wants her rent in $$$$. That way she does not have to worry about the exchange rate. And yes the drop from 587:1 to 508:1 has cost me about c100000 per month. When one is on a fixed income in dollars and the exchange rate drops this drastically, it hurts.. But paying in $$$ in most cases will cost you even more since few business (including the MPs) will give you the current rate (they always want to make a little extra for their trouble.).
 
paying in dollars vs colones

BangBang57 said:
In over 15 years, I have never noticed the MPs raising prices because of the change in the value of the colon to the dollar unless you are equating that to inflation here.

If you do a search you will find that Zona Blue (now HLH) raised the amount they charged in colones when the exchange rate changed. Not for every change but when the difference became significant. While this was not a price increase, the amount in dollars stayed the same, it is what I think Orange was referring to. His question is a logical one. Are they now quoting the fee in colones that reflect the lower dollar valuation?
 
paying in dollars vs colones

Exactly, Thanks ID.

BB,
I am not sure if you understood my question. I'm not asking about MP price changes. I'm talking about the differences in paying in dollars versus colones. The dollar price that they charge remains the same, the only difference comes from your choice of currency. You may not understand what I'm talking about since you frequent Tico MP's that only accept colones, for the most part.

For example (the numbers are not exact but close), at NF, the rate in May 2009 was $45 or ¢24,000 (when the rate was 525). In October, it was $45 or ¢27,000 (when it was 585). If the price is still 27,000 in colones, you are paying almost $54 at the current exchange rate, so it's smarter to pay in dollars ($45) there.

The prices in colones are adjusted periodically at HLH as well.
 
paying in dollars vs colones

Sorry if I misunderstood your question BUT you said:

Orange said:
We all know that MP's raise their prices in colones when the exchange rate turns against them. For example, when the rate was 500, they charged 15,000 for an hour. That equaled $30. As the rate was moving up to 580's, they raised their colon price to 16, 17, and 18k to account for the difference.

This IS pricing in 'tico MPs', NOT in the two MPs you are now using as examples, thus my confusion :?: :roll: . Neither of these two (HLH and NF) have charged gringos as little as c15000 in many years if ever. Actually HLH - never; NF may have when they first opened (do not remember for sure). Neither even charged as little as the 16, 17, or 18k you say they raised their prices to when the exchange rate was in the 580s.

In these two examples, I do agree with you that if they have not lowered their colon price, then today it would be smarter to pay in dollars. Almost all of the other MPs (those lowly TICO places which by the way at least two have many more gringo customers than Tico) DO accept dollars, but the dollar price is based on the current exchange rate so it changes as the rate changes
 
paying in dollars vs colones

Current pricing @ hlh as of mon. morn @ 11:30am

pay with us dollars = $46
pay with credit card = $52
pay with cr colones = 25,000 The guy at the desk tried to tell us that 25k is the same as $46 but I don't know what exchange rate he was using. The rate we got at airport bank was 516-1 = $48.45. If you got worse rate at hotel, say 500-1 = $50.
 
paying in dollars vs colones

SinCity said:
Current pricing @ hlh as of mon. morn @ 11:30am

pay with us dollars = $46
pay with credit card = $52
pay with cr colones = 25,000 The guy at the desk tried to tell us that 25k is the same as $46 but I don't know what exchange rate he was using. The rate we got at airport bank was 516-1 = $48.45. If you got worse rate at hotel, say 500-1 = $50.

All CR national Banks rate today is c506 so $46.00 should be 23,276. If they are charging 25,000 they are really charging you $49.41. :shock: Nice little profit. Pay in dollars
 
paying in dollars vs colones

All the above verbiage and computation hurts my head. I just want to be there when a Chinese gent with a North African accent speaking Bulgarian offers to pay in Papuan currency--the display of greed and perplexity on the MP owners face would be worth the price of admission...or at least a cold cerveza. I'm just sayin',,,
 
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