Five reasons to consider exporting to Mexico from the US

Do you have a product that you are currently only selling in the US?  Here are five good reasons you should consider exporting to Mexico.

1.  Proximity: 
If you are already selling to your neighbor to the north, why not sell to your neighbor to the south?  Mexico is a convenient export market for many reasons, but proximity is a big factor.  Shorter distances mean less money spent on freight and less time getting your goods from point A to point B.

2.  Mexico's love of foreign products:
Because Mexico has been exposed to products from the US for many years (more so after NAFTA went into effect), there is a perception of US goods being of high quality.  Use this perception to your advantage.

3.  Government assistance programs:
The US government has a number of programs for US exporters.  Contact the Department of Commerce for more information on BuyUSA and other export programs.  Also, look into your local Chambers of Commerce or Trade Associations to see if they have any matchmaking missions or free courses on exporting. 


4.  Additional revenue streams
If your domestic sales are stagnant, why not look abroad to increase your sales?  Many people get overwhelmed by the thought of exporting, but forget about the upside.  If there is a need for your products in Mexico, the sky is the limit on potential revenues.

  
5.  Trade agreements
NAFTA allows most American products to enter into Mexico duty free.  What does that mean to you as an exporter?  It means that you are going to be more competitive when it comes to pricing.  If someone in another country is trying to sell the same product into Mexico, but their product has a 20% tariff, that automatically adds another layer to their pricing that you don't have to deal with. 

Rediscover Rosarito

Today I am blogging live from Rosarito, Baja California Norte, so I thought it was only appropriate to mention a very interesting program I read about awhile back.  Rediscover Rosarito is a partnership between the city of Rosarito and Emerson College which is described on their website as an "ongoing image restoration campaign". 

The campaign aims to once again attract tourism and investment to Rosarito, a city hit hard by the effects of the media reports on narcoviolence.  Rosarito thrives on foreign investment and tourism, so when the media says it's unsafe to go to Mexico, the local economy takes a nosedive off of a cliff.  Many people don't realize that Rosarito is home to Fox Studios Baja, where movies such as Titanic and Master and Commander were filmed.

To visit the site, click here

Retail in Mexico: Cherokee to sell Sideout brand through Soriana

In this week's retail news, Cherokee, a "California lifestyle brand", has signed a 3 year agreement to sell and market their Sideout brand through Soriana.  The deal will include men's, women's, and children's clothing as well as footwear and accessories. 

Soriana has also announced the opening of 5 new stores in November.

Groupon in Mexico

Many of you have probably heard of Groupon, a Chicago based company that is one of the fastest growing companies in the United States.  Groupon has recently entered the Mexican market and has been off to a great start.

Groupon takes local businesses, mainly restaurants and other service providers, and sends out an e-mail to its members who can take advantage of huge discounts by purchasing the offer of the day.  The offers are valid for a limited time and only a limited number are available.  For example, a meal at a local restaurant that costs $200 MXN might be on sale for $40 MXN.  Groupon is free to join. 

There are a number of Groupon competitors sprouting up in Mexico including Groupalia, Cuponzote, BuzzUrbano, and OferCity. 

I've personally used the service and think it is a great idea - and one that is sure to be around a long time in Mexico. 

Will pay vs won't pay - pricing your services

I listened to an interesting webinar the other night where the topic of discussion was about business ideas and whether or not they are viable.  One of the key points was people's willingness to pay. 

Many people get so caught up in the fact that they have a great idea, they don't think about whether anyone will pay for it.  Its really important to determine who your target market is and whether or not they CAN pay and WILL pay.

I'm sure you can think of examples from your own life.  There are things that you don't have time to do, don't want to do, or don't have the skills to do that you will pay for.  In fact, if you can find someone to do one of those things you can't/won't do and they do it well, my guess is that you would hire them over and over again as the value they provide you is enormous. 

For example, if you can't speak Spanish, are you going to spend hours or days trying to piece together (incorrectly) a letter on BabelFish?  You just wasted your valuable time to do something wrong when you could have paid someone to do it right in a fraction of the time.  

Think about the services you offer and whether or not you are providing real value.  If you are offering a service people are reluctant to pay for, don't worry - just tweak your idea or find a different market. 

Temporarily Importing Your Car Into Mexico

If you've been looking for good (and correct!) info on temporarily importing your car into Mexico, then look no further.  Not only do I keep up with the immigration and importation laws, I have personally done this twice. 

The first thing I want to address is this rumor that if you temporarily import your car into Mexico, you must drive it back to the border every six months.  This is false.  I repeat:

YOU DO NOT HAVE TO DRIVE YOUR CAR BACK EVERY 6 MONTHS.

The most important thing to note about importing your car is that your car is legally allowed to remain in Mexico as long as your immigration status is valid.  This means your FMT, FM2, FM3 must be current (not expired).  You may renew your tourist or work/investors visa at any local immigration office.

The temporary vehicle import permit should cost you around $48 USD and you can get it at any Banjercito office (or online). 

Make sure you have copies of your passport, your title and your insurance.  You must have insurance that covers your car in Mexico.  The car must also be in your name. 

Any questions?  Feel free to e-mail me!  It really is an easy process and I've seen other sites make it sound waaaay too complicated.

Bimbo buys Sara Lee bakery division!

I'm a little late posting this, but last week Bimbo, Mexico's largest food company, acquired the bakery unit of Sara Lee.  This is huge news.  Bimbo has been buying up smaller bakeries for awhile now, but the purchase of Sara Lee's bakery division makes Bimbo a force to reckon with globally. 

Some details of the deal:

• Grupo Bimbo will pay Sara Lee $959 million USD for its bakery division
• All of Sara Lee bakery units 13,000 employees will be transferred over to Bimbo and it is reported that no domestic employees will lose their jobs.
• The deal includes 41 US plants and the rights to the Sara Lee brand in fresh baked goods globally, excluding Western Europe, Australia and New Zealand.
• Bimbo's 2009 revenue was $8.6 billion USD
• The deal is expected to finalize in the first part of 2011