Mexican Business Etiquette: Tipping

One of the main topics people search for when traveling abroad for work or pleasure is tipping. 

In Mexico, a standard tip is 10%.  This makes figuring out the tip very easy.  If the service is excellent, or you are in a very nice restaurant, the average tip is around 15%. 

What's expected can vary from city to city - for example, most people in Mexico City normally tip slightly higher than 10%, while in Guadalajara it doesn't matter where you are, everyone tips 10%.

If you are in a resort town or at a hotel, check your bill carefully to see if the tip (propina in Spanish) has already been added. 

For people from countries who aren't accostumed to tipping at all (some European countries), you must realize that waitstaff in Mexico does not make a decent hourly wage, so they count on tips as part of their salary.  If you receive terrible service, complain to the manager of the restaurant. 

Mexican Business Etiquette: How to Greet Someone in Mexico

I find that a lot of people come to the Mexipreneur site in search of etiquette tips, so today I'm going to cover something that is a huge source of confusion for a lot of people - the greeting.  In the United States and Canada, when meeting someone you are going to do business with the typical greeting is to shake hands.

After spending sometime in Mexico, you will notice that men and women greet eachother with a kiss on the cheek.  This is the typical greeting of friends and family (sometimes accompanied with a hug!).

Navigating how to greet people in the business world can be tricky because if you are meeting someone for the first time you really can't be considered friends, so what do you do?  If you are a woman, do you kiss your Mexican business colleague on the cheek or just shake hands?  It's funny because many Mexicans are used to foreigners being uncomfortable with the "kiss on the cheek" greeting, so they will go ahead and shake your hand before you even have time to overanalyze how to handle the greeting. 

You know what they say..."when in Rome, do as the Romans do."  I would encourage you to follow local customs when it comes to greeting potential business partners.  If you are a man, the standard handshake will do.  If you've become good friends or have known the person for awhile, the handshake will be accompanied with a pat on the back.  The best thing you can do is be observant.  Before you know it you will become so comfortable that you'll look back and laugh about how you stressed over a simple greeting.

A fantastic book that covers doing business in over 60 countries is Kiss, Bow or Shake Hands.  This book is a must read for anyone involved in international business.

Mexican Business Etiquette: E-mail

I know some of you may be thinking, "I already know how to write an e-mail...what could be so different in Mexico?  E-mail is e-mail."  While the technical aspects of writing and sending an e-mail may be the same, the content is very different.  Let me show you an example of what I mean.  Let's say you were waiting for someone in Mexico to send you an important report on Tuesday morning.  Tuesday afternoon rolls around and you still haven't received anything.






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TYPICAL EXPAT E-MAIL TO JUAN PEREZ

From: John Doe
To: Juan Perez
Subject:  Urgent Report

Hi Juan,

You promised to have that report to me this morning.  What happened???  Please send it ASAP!!!

Regards,
John Doe

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TYPICAL E-MAIL FROM SOMEONE IN MEXICO TO JUAN PEREZ

From: Roberto Gonzalez
To: Juan Perez
Subject:  Urgent Report

Dear Juan,

How are you?  I hope everything is going well for you and your family.  I saw your kids the other day and they are growing up so fast!!  We should really get our families together sometime soon to have dinner or something....

Anyways, do you happen to have the report ready?  My boss is coming down hard on me and you could really help me out if you sent it over.  I would really, really appreciate it!!!

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See the difference?  I know some of you may be thinking, "But why should I kiss Juan's a** if he OWES me the report and he's already late?".  To you, it may seem counterintuitive, but guess which e-mail will get a positive response?  E-mail number 2.  It's not about kissing anyone's a**, it is about showing concern for the person behind the e-mail.  In Mexico, it is very important to show that you care.  That is a major difference that you will notice while doing business in Mexico.  So, in conclusion, when writing an e-mail to someone in Mexico, try not to be so "to the point".  Remember to ask people how they are doing once in awhile, it can't hurt you.

Mexican Business Etiquette: Weddings

If you are doing business in Mexico, it is highly likely that sooner or later you will be invited to a wedding - either a business partner, an employee, or someone who you've done business with. 

• Most friends of the family in Mexico City do NOT attend the ceremony, but only attend the reception.  If you are very close to the bride/groom, and they mention seeing you at the ceremony, go.
• If the invitation says the reception starts at 9, it is ok to show up at 9:30.  If you show up at 9, you might be the only one there besides the waiters.
• Most weddings are host bar - this mean the family of the bride or groom pays for the alcohol.
• Dancing is not an option* (*this is my personal opinion, nothing to do with Mexico, ha ha).
• If you have trouble finding a gift off of the couple's registry, money is always accepted and appreciated (in an envelope).
• Mexican weddings tend to be much bigger in size, it is not uncommon to have over 300 people at a wedding.

Dress code:

FORMAL WEDDING AT NIGHT
Men - Tuxedo
Women - Long (floor length) dress/ball gown

FORMAL WEDDING DURING THE DAY
Men - Suit and tie
Women - Cocktail dress

BEACH WEDDING
Men - Guayabera and khakis or linen shirt/pants
Women - Sundress

MORE CASUAL WEDDING DAY OR NIGHT
Men - Dress slacks and dress shirt (with or without tie)
Women - Cocktail length dress or long dress (depending on the fabric)

These are just simple guidelines of what you will see most people wearing.  When in doubt, err on the formal side as most people tend to dress more formal in Mexico.  As long as you don't wear shorts you should be ok. 

Doing Business in Mexico: Forming a Bond with your Mexican Business Partners

Note: Business Partner here means anyone you do business with in Mexico, potential client, buyer, supplier, etc.

One of the main differences that people notice when they first come to Mexico to do business is the way that business is conducted.  We've talked about the 4 hr lunches, but what is really behind the lunchis the personal relationship aspect of doing business. 

I remember when I was looking for a job and interviewed for a Latin American Sales position (mainly Mexico).  The manager went on and on about how great the job was because I wouldn't have to travel, I'd be able to do everything via phone.  I sat back and thought "I may not be traveling, but I also won't be making many sales."  The fact of the matter is that putting a face to a name in Mexico is crucial.  I don't care if you have the greatest product in the world and people are clamoring for it...you still need to meet your potential Mexican business partners in person.

Relationships are built on trust and it is very difficult to trust someone you have never met.  It happens in the US all the time - deals are made over email and the phone - but do not expect the same to work in Mexico.

Mexico Business Etiquette: Gift Giving

When doing business in another country, one of the questions that most often comes up is whether or not it is appropriate to give gifts.  In the United States, people have become very wary about giving gifts because they may be misinterpreted or companies may have strict policies against giving and receiving gifts.  I have not found that to be the case in Mexico.

One of the great things about doing business with people from a different country is being able to share your differences and similarities. 

So what would be considered an appropriate gift?

Food, alcohol, something for their office with your company logo, a coffee table book, or something that is hard to find in Mexico.
Let's say you are from California - a bottle of California wine that is not sold in Mexico would be seen as a good gift. 

It is also common practice in Mexico to send a Christmas card or small Christmas gift to your clients (remember Mexico is 90% Catholic). 

I think the most important thing to remember here is that in Mexico it is highly unlikely that you will "offend" someone when bringing a gift, it might even strengthen your business relationship because it shows you are making an effort to strengthen your interpersonal relationship which is KEY in Mexico.

Mexican Business Etiquette: Who pays?

The question of who pays for a business meal is confusing for a lot of people, even within their own country, so when you throw another country and culture into the mix it gets confusing.  Let's say you are traveling to Monterrey, Mexico to meet the general director of a maquiladora who will be manufacturing parts that you will sell in the US.  The general rule is this: if you are the party that is seeking the business relationship, you should pay.  However, you will find that most of your Mexican partners will insist on picking up the bill since they feel like hosts and because you took the time to travel to visit them. 

Note - a single woman should never ask a man out to a business lunch unless there is another party invited (her business associate, his business associate, etc).  It may sound old school, but you will aboid the chance of putting yourself in an uncomfortable position.  If you have to have the meeting alone for whatever reason, make sure it is in a neutral place, like the restaurant of your hotel.  It is not common for women to pick up the check in Mexico, even if you are the one that proposed the meeting in the first place.

The most important thing when it comes to the bill is to never make a scene.  If your Mexican business partner (or potential partner) agrees to pay, gracefully accept and show your gratitude. 

Mexico Business Etiquette: The Importance of Titles

In today's more relaxed business environment it is not uncommon to refer to people by their first names, even when you have never met in person.  In Mexico, the business environment tends to be much more formal (in general, but it also depends on your industry).  Titles are very important, so when you are addressing someone in an e-mail or in person be sure to refer to them by their title and their last name until they tell you otherwise. 
Some popular titles in Mexico:

Lic. (pronounced as "lick" in English) - this is short for Licenciado or Licenciada and it refers to someone who has an undergraduate degree, or licenciatura.  Basically a way to show you made it through college.  A Licenciado can hold any number of degrees from business administration to law. 

Ing. - this is short for Ingeniero or Ingeniera, someone who has a degree in Engineering.

Arq. - short for Arquitecto or Arquitecta, which means Architect.  It may seem strange to say "Arquitect Rodriguez", but it is a formality that is very much appreciated.

Sr. - short for Señor.

Sra. - short for Señora, this is the equivalent of Mrs. in English.

Srta. - short for Señorita, refers to an unmarried or young woman.  When all else fails, use Senorita instead of Sra.  You will never offend someone for making them feel younger!

Names in Mexico

Many foreigners are confused by what seems to be a lot of names in Mexico.  I'm going to show you how the naming sequence works.

Let's take Arq. Rodriguez as an example.

His full name:  Luis Fernando Rodriguez Villanueva

First name: Luis
Middle name: Fernando
Paternal last name: Rodriguez*  (this is the name you will refer to him by)
Maternal last name: Villanueva

Let's say Luis Fernando is married to Gabriela Fernandez Coto.  Her name becomes Gabriela Fernandez de Rodriguez.  Let's say they have a son named Jaime.  Jaime's full name would be Jaime Rodriguez Fernandez.  The first last name is always the paternal last name and the second is always the maternal.

Mexico Business Etiquette: The Long Lunch

Since it is Friday, I thought I'd touch on something that confuses many foreigners when doing business in Mexico - the long lunch.  If you've ever done business in Mexico then you probably know what I'm talking about.

TIME
Mexicans usually eat around 2pm, sometimes an hour earlier, sometimes an hour later, but NEVER will you have lunch before 12pm. (Make sure to have a big breakfast if you are used to eating lunch at noon or earlier!)

FOOD
Lunch is a heavy meal in Mexico, if not the biggest meal of the day.  Most Mexicans subscribe to the thought "Breakfast like a king, lunch like a prince, and dinner like a pauper."  It is not uncommon to see people ordering an appetizer, a cut of meat with beans or some other side, and then finishing it off with a dessert. 

ALCOHOL
At business meeting lunches it is common to order a bottle of wine or other alcoholic beverages (tequila!).  Mexico used to have a reputation for it's liquor-fueled lunches, but getting drunk at lunch has lost its appeal and more people are taking it easy so that they can go back to work and get things done.

CONVERSATION
If you have something important to discuss, make sure you leave it to the middle of the meal.  Start off getting to know eachother and eachother's cultures.  Jumping right into business can be a culturally insensitive move that may cost you the deal.

LENGTH OF LUNCH
This is where things get tricky...depending on who you are with, what you are discussing, and how much tequila you have had a business lunch in Mexico can last anywhere from an hour and a half to 6+ hours.  It is not uncommon, especially on Fridays, to see the lunch crowd at a restaurant when the dinner crowd starts to role in.  My point is this: don't budget an hour of time for the lunch because you never know how long it is going to go. 

Mexico Business Etiquette: What to Wear

Figuring out what to wear can be difficult anywhere, but how should you dress when you are doing business in Mexico?  I always tell people who are doing business in Mexico to err on the conservative side, but make sure you are dressing appropriately for your line of work and location. 

For example, if you are meeting with a real estate developer in Cancun, as a male you would want to wear something more casual, like a guayabera and linen pants.  Ladies should wear either a dress or a skirt and nice top.

If you are doing business with anyone in Mexico City, the standard for men is a suit and tie (YES I said tie :)) and the standard for women is a nice blouse with dress pants or a conservative dress.  If it is a more relaxed environment, men should still wear a long sleeve button down, as short sleeves are considered for the beach areas.

The other big cities in Mexico, Monterrey and Guadalajara, seem to have a less formal dress code overall and that is partly to do with the weather being warmer.  Women put a big effort into their appearance all over Mexico which means hair is done, lots of makeup, and jewelry.  You will find that both men and women love fragrance in Mexico,

Please never, ever, ever under any circumstances wear shorts unless you are at the beach on vacation in Mexico!!!

Mexico Business Etiquette: Ready, Set, WAIT!

It's 9:50am.  You arrive at the building, excited at the prospect of the business relationship you are about to develop in Mexico.  You give your name to the receptionist and let her know you are there for your 10am meeting.  She politely smiles and tells you to have a seat.  You sit down and start thumbing through the industry magazines on the table next to you.  10am comes and goes, 10:15...10:30...10:45...What is going on?  You start to tap your feet and try to make eye contact with the receptionist who is busy doing her own thing.  Did he forget the meeting?  Surely not, you confirmed a couple of days ago.  Did something else come up?  Not likely - or the receptionist would have told you.

For those doing business in Mexico this is probably one of the hardest lessons to learn - the difference in the concept of time.  Sometimes the wait is intentional.  For example, many times retail buyers will make you wait on purpose just to show you how "important" they are.  Silly power trip?  Yes, but it is a way of life in Mexico and you must learn to roll with it if you are going to be successful.  Other times, the wait is due to circumstances out of their control, like traffic.  In Mexico City, sometimes going to the same place can take 30 minutes or up to 2 hours!  Imagine trying to plan your day knowing that. 

My advice for foreigners doing business in Mexico?  Be patient, learn to go with the flow, and always bring something to read! :)