Pricing your product/services in Argentina

  • We always complain of the random prices due to inflation and obscure forces. But how do you price your products/services?

    We give classes from March to December, and my husband insists on a fixed priced throughout this period. He says a person enrolling should be assured they will be able to afford it from start to finish. However, this means that we earn fair money on March, and peanuts in December.
    In 2019 I insisted we set a price for six months, but the Argies students threw us a curveball, and instead of starting in March they started in April. By the the time we started seeing the money, our quote was already less (in USD) than what we had set. This also means that by the time we updated our rate (it was a huge hike in pesos, but long overdue), we just got two months at the new rate.

    Overall, I am not happy with this strategy.

    I have interviewed a number of freelancers and everybody has a different strategy: some increase of 50-80 pesos per month, some increase of 100-200 every three months, some have made a rule that on July there is the mid-year 'reassessment'...

    For 2020 I want to set a price in USD and ask to be paid the equivalent in pesos, but I am not sure how well it will be received. Is it considered rude? Is it something everybody do but don't tell?

    And should it be converted at the official or informal exchange rate?

  • I'm assuming that it is not easy for your students to get dollars; were that the case, you could simply charge in USD to be paid in USD.

    The problem that is bigger than inflation right now is the question of whether the peso will be propped up indefinitely or devalued. The only way to counter that is to do as you plan: charge in dollars. What about giving the students the option of paying in dollars or in peso dollar equivalents? I any other country, I would say that you couldn't actually acknowledge the blue dollar, but here? Could you run into trouble if you charged anything besides the official rate?

  • I think the transaction must be in pesos, but you can decide whether to set a rate in USD and convert to the daily rate.

    I bought some softwares from a local official reseller of an international firm, and they quoted me in dollar at the daily exchange rate. Except that they set their 'daily exchange rate' to the blue rate (so a random number). They do not publish prices, you have inquire by email, they state the equivalent in pesos and that amount is valid for 24 hours. I don't think one can stall too much the payment date (i.e. order now, confirm order today but actually pay in 3 days).

    We are planning a trip to Córdoba, and on all lodging prices are set in dollars. Most of them require a deposit now and then pay the difference in cash (in pesos) on arrival, using the official rate on that day.

    We tried to contact privately some properties, but they offered the same rate. The option of paying the full amount in advance in pesos was actually more expensive.

  • I have one Arg client , sorry two , but the second one I invoice to his Uruguayan affiliate

    My deal is fixed price in USD converted at the official FX rate on the last day of the month.

    I tried to get the blue rate but i got shot down........

  • The missus does it all hence why I look younger than her. :D

    The land she rents to the cereal growers is straightforward as the contract is calcualted on the current price of soya per hectare. The land that's used for cattle is similarly worked out.