Semana Santa

Roberto

Guest
The town was jumpin last night. Calle 13 was wall to wall, hot chcas dancing in pickup trucks. Forget about going to the Malecon unless you want to walk from the Municipal building. Maybe I'll get in there early tonight. Bands were playing on Sandy beach throughout the night and right up till dawn. Mirador was pretty dead.

If you're not here, you are mssing a great weekend. Woooo Hoooo!
 

Braden_909

Design & Marketing Gringo
I work at the end of Calle 13, by 8 when I got out of work, both lines of Calle 13 were filled with traffic, took probably 30 minutes to make my way to Benito Juarez! This is how Rocky Point is supposed to be.
 

El Gato

Guest
Can't believe the traffic headed out towards Choya Bay. At one RV turn off the traffic was backed up at least a half mile if not more. Our place is completely full - they were triple parking out front. Everyone seems to be having a fantastic time and, of course, the weather couldn't be more perfect! Wonder if the airport has been busy? Don't think we shall venture out on the roads until Monday.
 
Sure hope they are, but have been told by a bartender at JJ's, that they mostly use the bathrooms there and don't spend much on food and drinks (pretty expensive), so JJ's now charges them for the bathroom use.
I really don't blame them.
 

Jim

Guest
We don't expect much of a turnout at the bar. Last year we were all excited and had live banda music playing and got all prepared for a huge weekend. We got nothing. Same as JJ's just wanting to use the bathroom. Beaches, the Malecon and just driving around is where it's at. Expendios and taco stands make out great but it doesn't seem that many go to the bars and restaurants.
 

Roberto

Guest
Yeah, it's interesting. After watching the market change over the past 5 years I've been thinking it's becoming a Mexican market and a business needs to conform to their buying habits. You certainly cannot easily depend on the folk from the US to make a successful business in Penasco right now. Restaurants and bars don't tend to do well. Gasoline, overnight rentals, cervesa sales, straw hats for the ladies, taco stands, ATV rentals, maybe harbor cruises, and oh yeah Cruz Roja is busy too.
 

mexicoruss

Lovin it in RP!
Can't believe the traffic headed out towards Choya Bay. At one RV turn off the traffic was backed up at least a half mile if not more. Our place is completely full - they were triple parking out front. Everyone seems to be having a fantastic time and, of course, the weather couldn't be more perfect! Wonder if the airport has been busy? Don't think we shall venture out on the roads until Monday.
According to our OCV Javier M. The airport is working overtime with flights from cities all over Mexico to Penasco. This is a Mexican tourist destination like crazy
 
Yeah, I agree the businesses need to change their business models and charge accordingly. I can go to Puerta Valarta (as a Gringo) and get a beer and tacos for about 1/2 of what many places in RP charge.
Many Mexican visitors coming to RP probably aren't prepared to spend what us Gringos have to.
RP seems to modeled themselves after the Cabo business model, which is charge all you can.
Too many places don't seem interested in offering specials like happy hour's or 2 for 1 beers, tacos, etc. because they don't make what the are used to.
JJ's is an example, and I love that place, but when I can buy a case of beer for $16 and get ice with it (.67 a beer) and have to pay $2.75 for a beer, there is plenty of room to do
things to attract new and old customers, It's not like thay have to run A/C in July.
 
Brokenwave, i know that in days of old it was possible to buy a beer and a taco for $2.00 and we all loved that about Rocky Point. While there are many reasons for the pricing structure of today, let me point out a few of the reasons. First your locals bars all pay the same amount for their case of beer as you do, Tecate does not give them a break in the cost of a case unless you purchase in huge volume which is most often not possible due to the decline in business. Therefore, each beer costs .80 each not .67 cents as there are 20 bottles to a case not 24. Of the businesses I am aware of, rent runs from approximately $800.00 to $4000.00 a month. The cost of electric if the building has a/c averages $1100.00 a month, the cost of propane averages $80.00 a week, then there is your water bill and also a weekly bill for ice, the payroll while the weekly amount of pay is not as costly as in the US does have a component to it that quickly adds up. While in the states you pay a portion of taxes as an employee and the employer shares in those costs, not so in Mexico, the employer pays all taxes, plus vacation pay and yearly bonus. Also, when you have reason to let an employee go or they choose to leave, you must pay them a months salary for each year they worked for you.

As far as why many bars don't offer happy hour prices, many bars are not able to do this depending on the type of liquor license that they have as the liquor laws forbids them to do so.

Also there are taxes to pay based on your monthly sales

So you can easily see why the days of $1 beer are long gone.

I explain the above as a way of hoping the customer base has a better understanding why the owners have little choice but to charge what they must to keep the doors open.
 
brokenwave....over the last 1-2 years...I've seen the prices in Penasco go up and up and up....to the point, it's just about at US prices (almost Scottsdale).....

I had some lunch yesterday in Tempe with some fellow workers....the lunch was not much more than what I would have paid for it in Penasco.....had a beer (on tap.....imported).....cost me $4 and it must have been a 32 oz. glass.....and the young lady serving looked a lot better then the servers (mostly male) in Penasco!!!!

You can still find great buys on the corners (tacos/sonoran hot dogs/tortas/etc.) in Penasco.....BUT....the places on the malecon or mirador need to change their business model.....volume versus high profit!!! Do any of them even have a "happy hour" any more?
 
I know there are some hefty costs to run a business, the newer ones deal with higher rents and the more established ones have to deal with the long term employee severance issues. But.

I have seen 2 for 1 beers in Cabo (they were $5 for 2), I have seen 3 tacos for $2, $1.50 Pacificos with chips and salsa in Mazatlan and Valarta, right next to the Cruise ship terminals, even less in town.
And there is a ton of competition in those towns for both locals and tourists.

How can they do it in other Mexico destinations and not in RP? (Margaritaville did a huge business because it was inexpensive)
There isroom to offer something to promote business even with all the costs involved to keep the doors open. Especially when there is a 300-400% gross profit on food and beer.

A sure way to promote RP is to do something to generate new customers and to get new visitors from the USA to experience Mexico and spend, is by offering some deals of food, drinks etc.
(and shut off the newcasts about how dangerous Mexico is).

People love a deal.

I have a ton of friends who are going to the beaches of California instead of RP because it isn't much more than RP.

Many businesses in the USA do the Volume business model due to the intense competition. Sadly those that don't know how to compete when things are slow, they don't survive.

The bottom line is the need to attract more new customers and crack open the wallets that are already there.
 

Roberto

Guest
Spend a couple of hours on the Malecon late Sat. afternoon, and it was lots of fun. Drove in the back way with no traffic about 4 and found a parking place easily. Lots of people but not wall to wall yet. The battle of the bands was on with one large band of 15 in black sequined jackets, white shirts and sequined jeans, trombones, clarinets, french horns, trumpets, drums and of course a tuba with 3 singers all amplified battling a much smaller group dressed in white shirts and jeans. The guys in white would start a piece, then the guys in black would start and blast them away. A great time, lots of happy people dancing.

The little, relatively new, Oxxo there on the Malecon was jammin. The security guard was locking the door when the place was full of people and then opening to let a few out and a few in. Beer, chips, soda and ice cream. There was a crowd waiting all the time I was there.

The street vendors were still present with the little kids darting in and among the visitors. Not selling chiclets, but each carrying a plastic bag collecting aluminum cans !! Filled bags were stacked around the vans with the signs on the sides.

Food street vendors were restricted to the first street up from the Malecon and there was a ton of them there from the Thrifty Ice Cream Store all the way to the plaza on both sides of the street.

Candy Cake next to Marys was open and had a pretty good stream of people in and out. Mary's always does well. Lots of mangled straw sombreros in evidence !

It's really a great event and you can avoid the crazy crowds and have a great time, so see you next year, or if you are here now on the Malecon this afternoon.
 
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The owners of the properties that most of the malecon businesses are on seem to be out of their minds too.....I heard that the the rent for Debbies (which has closed) was about $3000 a month (can anyone verify this?).....combined with the high business utilty rates....that requires a lot of beer and food to be sold!

I saw that a couple of years ago with another business...located on the Mirador....the owner of the property had no desire to work with the business when things went "south" with swine flu and reports of violence. That business also closed! He preferred to have the place vacant and not collect any rent!!!

And don't get me started on the liquor authority people....and their targeting of some of the businesses....but that's another topic!!
 
Brokenwave, i know that in days of old it was possible to buy a beer and a taco for $2.00 and we all loved that about Rocky Point. While there are many reasons for the pricing structure of today, let me point out a few of the reasons. First your locals bars all pay the same amount for their case of beer as you do, Tecate does not give them a break in the cost of a case unless you purchase in huge volume which is most often not possible due to the decline in business. Therefore, each beer costs .80 each not .67 cents as there are 20 bottles to a case not 24. Of the businesses I am aware of, rent runs from approximately $800.00 to $4000.00 a month. The cost of electric if the building has a/c averages $1100.00 a month, the cost of propane averages $80.00 a week, then there is your water bill and also a weekly bill for ice, the payroll while the weekly amount of pay is not as costly as in the US does have a component to it that quickly adds up. While in the states you pay a portion of taxes as an employee and the employer shares in those costs, not so in Mexico, the employer pays all taxes, plus vacation pay and yearly bonus. Also, when you have reason to let an employee go or they choose to leave, you must pay them a months salary for each year they worked for you.

As far as why many bars don't offer happy hour prices, many bars are not able to do this depending on the type of liquor license that they have as the liquor laws forbids them to do so.

Also there are taxes to pay based on your monthly sales

So you can easily see why the days of $1 beer are long gone.

I explain the above as a way of hoping the customer base has a better understanding why the owners have little choice but to charge what they must to keep the doors open.
Most of the liquor licenses are held by the liquor distributors....are you saying that they restrict what prices the establishments can charge?

Also adding to the costs for drinks (including beer) is the duty that mexico charges on imported liquor.....

The question that I still have is what makes all these conditions different in Penasco from other parts of Mexico? When I drove over to El Golfo a while back, everything was just about half (food and drink) from what I was paying in Penasco....

Maybe one of the bar/restaurant owners can pipe in....Jim??????
 

lagrimas85

AKA Carnac
The big question though is......are they spending $$$ at the local businesses?????
They were big spenders, 100,000 visitors, income to Penasco $4,000,000 for the week of Semana Santa if you shorten the week just to 5 days thats an average of $8.00 per day or $40.00 for the 5 day week spent per person, I know it helped a little but it still seems ridiculous. Half of that money probably left town in the form of business expenses. So if that leaves $2,000,000 in Penasco for the week to be split amongst its 48,000 inhabitants thats around $41.00 for the week for each inhabitant average. Not to much to go around.
 
Bill that is ridiculous....when I was rv camping at Playa Bonita with my kids years ago, we spent more.....although I'm sure every little bit helps considering how bad the economy is.
 

MIRAMAR

Guest
Lagrima, in Economics class, they discuss the "multiplier effect". That $41/person gets spread around several times, resulting in a much larger gain for the city.
 

lagrimas85

AKA Carnac
Lagrima, in Economics class, they discuss the "multiplier effect". That $41/person gets spread around several times, resulting in a much larger gain for the city.
Thats right, but its still only 2,000,000 I understand what you are saying though, the bar owner pay's his ice bill, the ice company can now pay his accountant, the accountant, can now pay the office supply store all with maybe the same 41.00 it goes on and on. The secret is keeping the money in town.
 
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