Business Etiquette in Mexico

Your guide to business etiquette, customs and business practices in Mexico.

Also See: Social Etiquette in Mexico and Society and Culture in Mexico

• Working and Business Hours
• Breakfast, Lunch, Dinner
• Use of Phone, Fax & Email
• Authority, Status and Decision Makers
• Time and Punctuality
• Language
• Dress Code
• Greeting Protocols
• Women in Business
• Meeting Formats
• Negotiating in Mexico
• Talking Business
• Advertising and Promotion in Mexico
• Getting Paid

Working and Business Hours

Offices: Office Hours are generally from 8am to 6pm.  Office Lunches are usually taken between 1pm and 3 pm and last for between 1 and 2 hours.

Factories: Hours to suit operations; many factories, especially maquliadoras, operate 24-hour shifts (3x8).

Banks: Larger branches of main banks in Mexico City are now open from 8am to 7pm; most are open at least 9am to 5pm. In smaller provincial towns some branches still close at 1:30pm. Larger branches open Saturday mornings.

Breakfast, Lunch & Dinner

In Mexico, different kinds of business meetings take place, depending on the time of day. First, though, a note about the Bill...

Meal Expenses: It is not customary and, indeed, splitting the bill is frowned upon in Mexico. As a general rule, the person doing the selling pays. The exception is if you are the seller and you have been invited to the meal by the other party - although it is polite to offer to pay, anyway. When you pay your bill, you should include the appropriate tip. Connect to the Mexperience Travel Essentials Section for advice about Tipping in Mexico.

Breakfasts: (Start Between 8am & 11am) - Business Breakfasts are very common in Mexico. They take place in good restaurants and it is the meal where most business is done. Paperwork, files, charts, facts and figures come pouring out over the table during business breakfasts. Business deals can be firmly agreed and/or closed over a business breakfast. Business Breakfasts tend to last no more than 2 hours.

Lunches: (Start Between 2pm and 4pm) - A Business Lunch is not a detailed power-business session. In Mexico, this is the main meal of the day and will consist of soup, starter, main course, dessert, coffee, cheese, brandy, et al. During lunch times, Mexican people will want to get to know you - and they will not do business with you if they don't know you, or don't like you. Business ideas, concepts, and possibilities are discussed - specifics are not. Don't get your paperwork and charts out - this is not the time. During lunch, you 'network', you socialize a little, you keep the conversation in the 'concept and possibility' arena only. Lunches are also "deal maker" times, used to close deals once the detail has been pre-negotiated and agreed beforehand. Lunches can go on until the early evening - so don't schedule anything immediately after - the last thing you want to do is excuse yourself for another appointment.

Dinner: Dinner in Mexico is a late affair: around 9pm. Family is important in Mexico, and Mexicans like to share time with their families in the evening. Except in exceptional circumstances, business is not discussed over a dinner meal. If you are invited to a dinner, only discuss business if your host discusses it. Otherwise, treat it as a social occasion - see Lunches, above.

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Use of Phone, Fax & Email

The Telephone is used to arrange appointments, and importantly, to confirm appointments. If your meeting was scheduled far in advance, be sure to call up to a week before and confirm the details. Some secretaries may not speak English; so speak in Spanish, or at least have a couple of Spanish sentences prepared.

Fax is less common now that Email is becoming widespread. However, fax is still widely used, especially for official documents, pictures, maps, etc.

Email is increasingly common in business circles and can be used as an alternative to telephone for confirming appointments and general communication.

Connect to the the Travel Essentials Section on Mexperience, where you'll find detailed information about the use of Communications in Mexico

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Authority, Status & Decision Makers

Mexican Businesses tend to be very hierarchical. Status and position is important in Mexico, and you should acknowledge this and act accordingly.

If a Mexican firm's top managers are present at a meeting; they will expect the same from your firm.  They will feel insulted if subordinates are sent to meet with them. Equally, if a firm sends lower level managers to deal with high level people in your company, then you will be wasting your time.

Make sure that you are meeting and negotiating with the people who will be making the decisions.  More often than not, these will be senior people within the company.

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Time and Punctuality

The English are so well known for their punctuality that in Mexico, there's a saying people use after agreeing a time with you: "Hora Inglesa", literally translated means "English Time", the inference is that the time agreed should be strictly adhered to.

In Mexico, time is not regarded as the panacea that it is in other western economies. Time is a very flexible thing in Mexico. As such, don't be offended or surprised if your contacts in Mexico don't show up in timely fashion: tardiness can be due to a range of different things and if it happens there will always a be a 'good reason' for it!

For social events, you could show up 30 minutes later than the time on the invitation. Even back home, people rarely show up for parties at the exact time; preferring to arrive a little later on: in Mexico this is quite common.

If you are sending out invitations to a social gathering, keep in mind that guests won't show up at the time you state, and importantly - it is not customary to define an 'end time' for social occasions in Mexico. Sometimes invitations will specify a time at which the event will end; in Mexico, this should be left open-ended.

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Language

Spanish is Mexico's official language, and business meetings should normally take place in Spanish. English is quite widely spoken in business circles, today more than ever before, and if you don't speak Spanish, your hosts may be happy to hold the meeting in English, but check beforehand to avoid embarrassment.

Even though your hosts are likely to accommodate your language needs, you should try to learn some Spanish if you are going to be doing lots of business in Mexico. Even an attempt to communicate with broken Spanish will be warmly appreciated and seen as a sign of interest and respect. Mexperience has dedicated a whole section to Learning Spanish which you can connect to for further information and resources.

If you do not speak any Spanish at all, it may be wise to hire an interpreter to attend the meeting with you. In such an event, meet with your interpreter beforehand, brief her/him about the likely content of the meeting, including any technical terms that you will be using.

When speaking in English to a Mexican who understands English, speak clearly, slowly (but not stupidly slow), and if you have a British English accent try to pronounce your vowels and the letter "r" more than you otherwise would. Why? Most Mexicans learn English by listening to Americans speak. A British accent can throw them off, especially more complicated words. The closer you speak to "Queen's English", the harder it may be for them to understand some words. If you have an English regional, Welsh, Scottish or Irish accent, this may help or hinder - read the body language to make sure.

Something that can happen inadvertently if you are speaking with people for whom English is a second language - don't shout or speak louder than you normally would! The best advice is to Learn some Spanish!

Finally, a note about Written Communication: All marketing literature, product manuals, warranty info, labeling, and anything you expect to leave with the contact should be in Spanish. Be sure to come prepared with all your relevant information translated into Spanish. It will show respect, and show that you are serious about doing business in Mexico. If you start to ship products to Mexico, by law, you will need to have all written communication documents in Spanish - especially the labeling. Many goods stay in Mexican Customs (accruing expensive storage fees) because the labeling is does not match import regulations.

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Dress Code

Mexicans dress formally for business meetings with suits and ties, and will expect you do the same in the major cities (Mexico City, Guadalajara, Monterrey). This is also true for most cities inland. Shorts (even formal shorts) and short sleeved shirts (even formal short sleeved shirts) and trainers (tennis shoes) are a no-no.

The exception to this rule is if you are meeting in a very hot region or climate - Acapulco by the Pacific coast is a good example. Next to the beach, meeting attire tends to be smart informal; formal shorts and short sleeved shirts (not T-shirts) are acceptable, but your feet should be covered - no flip flops or similar. Dress light, but respectfully.

For social gatherings (outings, picnics, etc) wear smart casual - chinos, polo shirt, pull-over for the evening, etc. If you're playing golf, you'll be required to wear proper golf wear, just as you would do at established golf clubs back home.

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Greeting Protocols

Names: In Mexico, people have three names: Their First name, their Paternal name and their Maternal name. Written, they will use all three (or the third will be often abbreviated with the first letter), but verbally they will use the first two. For example, Maria Vazquez Laredo would introduce herself as Maria Vazquez, or Señora/Señorita Vazquez (although see note below about Titles).

Titles: Titles are extremely important in Mexico - a big status symbol. Professionals with a degree are not referred to as Señor or Señora/Señorita, but with their title: The most common titles are: Licenciado/a (Professional e.g. Lawyer, BSc, etc), Ingeniero/a (Engineer) Doctor/a (Doctor), Arquitecto/a (Architect). If you are unsure whether they have a title (a business card should always carry it) then you should assume a title and use the one that is most likely to represent their trade.

Men Meeting Men: Men always shake hands when they meet and before they depart each other's company. An "abrazo" (hug) is shared between friends; wait for your Mexican contact to lead with this. If, while shaking hands, he pulls you in toward him, follow through with your left arm on his back, and give him 2 or 3 pats on the back.

Men Meeting Women: A formal handshake is appropriate for business when meeting and before departing; some women may learn toward you to kiss; you should follow through with a light kiss on the cheek (only one, unlike Italy, for example). Hugging as above.

Women Meeting Women: A formal handshake is appropriate, and it is likely that women will kiss on the cheek when they meet and depart. Hugging as above.

Generally: If you are introduced to a man or woman, you should always follow the protocols above: Physical contact is essential - never just stand there and say 'hello, nice to meet you'. Once you have built a rapport and have a friendship developing, you will find that your Mexican hosts will be much warmer, and physical contact in the "meet and greet" process will be more prominent (e.g. handshakes and hugs will be firmer and last longer). Don't let any personal reserve you might have interfere with this process: it is essential to gaining people's trust and understanding in Mexico.

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Women in Business

Although Mexico is sometimes remembered for its "machismo" attitude towards women, contempoary Mexico is not usually like this in professional circles. The modern Mexican woman is cosmopolitan, professional, and well respected.

If you are a woman planning to do business in Mexico, whether independently or as part of an organization, you should find that you are accepted, respected and treated very courteously and professionally by the majority of business people.

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Meeting Formats

If you're used to regimented, "checklist and orderly" agendas, think again! Mexicans are very creative and very artistic people. They don't like the constraints that US/European-style meeting formats tend to have: they feel it breaks down the creative process that leads to new ideas and better concepts. Be prepared for your meeting format to follow a hap-hazard pattern, with subjects changing various times and tangents commonplace. Don't try to force any pre-conceived "orderliness" on your Mexican hosts: it won't work!

If you have an agenda, take it with you, and check off the points as you cover them, but don't arrive expecting it to be followed through in any orderly manner!

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Negotiating in Mexico

When you're doing business in Mexico, the most important thing to remember is that the relationship must be developed first. Mexican people make friends first, and then they do business, not the other way around.

If you do not take time to develop a relationship - a friendship - building rapport and trust, then you may as well not be in Mexico on business. You may have the best product (they may have the very thing your company needs) but if you don't build the relationship, they will be highly reluctant to do business with you. Therefore your negotiations should initially center around building a relationship.

A meeting should always begin with small talk. Family is very important in Mexico, and a friendly enquiry about how the family is doing is often common practice, even among Mexicans. Other topics include the weather (no problem there if you're British), latest fashions, and Mexico's areas of outstanding natural beauty (see the Mexperience section about Mexico's Great Outdoors for some background details on this).

Begin the process of getting to know your hosts, and be aware that their first impressions of you will count a lot. Use this time to develop the relationship and build a foundation for friendship. Your hosts certainly will.

Bear in mind what setting you are in: Most initial meetings begin over breakfast or lunch, and you should read the relevant sections above to ensure you play your cards correctly. Don't rush and don't be rushed. Trying to short-circuit the process can lead to problems later on.

Business deals are seldom (if ever) closed over the phone; Mexicans like to look you in the eye when they are closing the deal. Once again, personal contact and relationships are important, as they are throughout the entire Mexican Culture.

A note about closing sales by email and web-trading: This is becoming more accepted in Mexico, and small business deals (e.g. subscriptions or re-subscriptions) may be closed using e-trades, but initial contracts and any significant business deal must be undertaken personally. The currency of trust that exists in the US, Canada & Europe in regard to trading and trusting businesses to deliver their promises through electronic trade has not developed in Mexico yet. Your business associates will want to see you in person and you should want to see them too.

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Talking Business

The subject of managing the detailed business operations is too broad for this article, but a some thoughts should be borne in mind when thinking about 3 important operation practices:

Credit Checking: Credit checking agencies are developing in Mexico as its credit systems begin to grow and mature. However, getting a credit check undertaken on a company or individual in Mexico is not as straightforward as it can be in the US/CA/Europe. However, other checks can be made to protect your investment.

Before you commit to an agent or distributor, be sure that he/she/they have the capabilities to deliver what they say they are going to do. Visit warehousing/distribution centres to inspect their facilities, and assess their access to resources. Ask for previous client references, and talk to people who already do business with them. Are they reliable? Do they deliver on time? A reputable business in Mexico will be delighted to refer you to clients they work with or have worked with in the recent past. If they are not immediately forthcoming on these matters, then you should reconsider your potential business partners.

Distributors/Agents: Good distributors are in very short supply in Mexico, and you will need to research and do a lot of homework to find the a shortlist of good ones. Very few have national reach; most sub-contract, meaning that the sub-contractor will add to the cost and the ultimate price to the end user. Agents may be better than distributors, especially if you deal in large volumes or have an extensive product range. If you are using Agents, it's probably best to contract them, as opposed to hire them. Labor and employment laws in Mexico are complex, which will add to your costs.

Exclusivity: This is a common request in Mexico, as some firms feel that they will put a lot of energy into marketing and selling your product, only for you to dilute the value they can gain by introducing multiple supply chains, and possible 'internal competition'. Only sign into an exclusivity deal if you are sure that the people you are negotiating with have the capability to drive your product/s effectively in the markets you want to reach. Many companies who want a national distribution operation, will contract companies or agents to distribute/sell by region, and give exclusivity within that region only. In all cases, exclusivity deals should ideally have finite time scales associated with them, specific targets and objectives tied to the exclusivity contract and a formal review carried out at the end of each agreed time period.

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Advertising and Promotion in Mexico

Mexico has a very well developed and sophisticated media infrastructure, and Mexican consumers are very influenced by the various media surrounding them. Television, radio, billboards, newspapers, direct mail, call centres, et al - they're all there, available for hire/contract in Mexico now.

Advertising can be targeted locally, regionally or nationally. For bigger spenders, all the major (global) ad agencies have offices in Mexico, and there are many independents who will do bespoke/ specialist advertising work for smaller (SME) and companies operating in niche markets.

Television, radio and bill-boards are the most popular forms of advertising: newspapers have nowhere near the circulation that they have in the US/CA or Europe, although targeted ads in specific papers can be effective in certain markets.

What Mexicans consumers really love are the 'touchy feely' kind of promotions: in-store samples, free trial packs, value-added handouts (e.g. recipe cards, fridge thermometer), free gifts, toys that will also advertise your product will also go down well in Mexico! These kinds of promotions are especially important (some would argue they are critical) if you are launching a new product in the consumer market.

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Getting Paid

If you are selling to Mexico, then payments terms should be cash with order, or by means of an irrevocable letter of credit for the first few orders, until a credit history and business relationship is built up.

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