Pricing, Fees and Change
Posted on March 24, 2007
Filed Under Economy, Expat Tips, Vocabulary |
6 Comments
Before 1999, the Uruguayan economy was heavily dollarized and it was common to see prices in US dollars and to see it used as a parallel currency. Nowadays however, prices are almost always advertised in Uruguayan Pesos, with the exception perhaps of real estate, motor vehicles, appliances and a few other imported items.
The symbol used for the peso in Uruguay is the $. Unfortunately, this happens to be the same symbol used for the US dollar in the US. As can be expected, this is a source of confusion for the newbie tourist, ex-pat or immigrant from the US. So here you go, Warning to Gringos: assume all prices are in pesos unless displayed as US$ xxx or USD xxx.
Unlike the US, prices already include the 23% IVA, or value added tax, so no confusion there. However some attention is warranted when looking at prices displayed in store windows. Many stores provide financing, allowing patrons to pay in installments, so the price shown may correspond to: one installment, the sum of all installments (including finance charges) or the cash price. It is important to know that the discount for cash payment, or pago al contado, can be anywhere from 0 to 20%. Even though the stores are required to show the price information clearly next to the item, sometimes the print is so small you need to go inside to read it. Just in case, I always ask if the price shown is for cash payment.
Unlike a few other countries in Latin America, bargaining is not part of everyday life. In most places you are expected the price displayed and that’s it. However, some amount of negotiation is to be expected in transactions between two individuals, such buying a home, a used car, the flea market etc.
I noticed that often in Uruguay the cost of fees and fines are based on a few indexed units. For example, certain fines, government fees and other services are based on the Unidad Reajustable, UR. The value of the UR is adjusted periodically by the government and is now at 320 pesos. It appears that home lending, non-dollar rent prices are based on a variant of the UR called the Unidad Reajustable de Alquileres, URA. If you have more information about it please write in.
Another index I found in use is the Unidad Indexada, UI. It is adjusted by the government based on the cost of living and apparently is used to determine the fees associated with late payments and certain fines, among many other things.
After one starts to use the peso on a regular basis, it is hard not to notice that everybody seems to be short of small bills. Often, cashiers will get upset if you hand them a large bill to pay for a small transaction. Also it is not uncommon for cashiers to offer a candy or other items in lieu of small change. I suspect this shortage stems from the high cost of keeping a country well supplied with small bills or coins. Anyway, this is an old and common problem in Latin America.
After a while, long time residents learn to manage their change-supply. For example, when you go to a bank or RedPagos (where they do have change) you hand them whatever bill will produce most change. Also, never squander small bills. Save them for the places least likely to have change like taxis, buses, kioskos etc. To manage my change booty, I always carried a small coin purse and a largish wallet. This combination proved quite effective, even if a little inconvenient.
Vocabulary related to shopping:
Other posts in EconomyAbonar – Make a payment, especially regular payments
Compras al contado – Cash purchases
Cuotas mensuales – monthly Installments
Descuento – Discount
Descuento para pagos al contado – Discount for cash payments
Efectivo – Cash
Ganancia – Profit
Mercancías – Goods (being sold)
Moneda – Change (as in pocket change)
Oferta – Special price, reduced price
Pagar con cheque – To pay with a check
Pago contado – Cash payment (actually payment all at once, may be with a check)
Precio – Price
Precio de costo – Cost price
Promoción – Sale
Rebajas – Reduced prices
Tarifa - Fare
Tarjeta de beneficios – Discount card
Tarjeta de credito – Credit card
Tarjeta de debito – Debit card
Tarjeta de descuentos – Discount card
Vale obsequio – Gift certificate also referred to as Check obsequio
Vidriera – Store window
- Things I Find Puzzling About Uruguay
- Real Estate Outlook in Punta del Este
- Squatter Rights in Uruguay
- Cost of Living in Uruguay
- The Effect of Exchange Rate on the Cost of Living in Uruguay
- Pros and Cons of Shipping Furniture Abroad
- Should I Bring My Electrical Aplliances to Uruguay?
- Usufruct and Inheritance Issues
- Tipping Custom in Uruguay
- American Income Tax While Living Abroad
- Visa Requirements to Travel to Brazil
- Inheritance Laws in Uruguay
- Uruguayan Spanish Conjugation
- Obtaining the Uruguayan National ID
- Steps To Obtain Permanent Residency in Uruguay
- Car and Driving Spanish-English Glossary
- Uruguayan Spanish Conjugation
- Uruguayan Spanish Real Estate Terminology
- Uruguayan Mate Custom
- Marijuana Legal Status in Uruguay
- Types of Cheeses Made in Uruguay
- Things to Consider Before Hiring Household Help
- Uruguayan Knife Sharpener
- Uruguayan Banking Vocabulary
- Banners Commonly Seen in the Streets of Montevideo
Comments
Click here to view the most recent comments from all posts
6 Responses to “Pricing, Fees and Change”
We found a consistent area of price flexibility – buying furniture and large amounts of kitchenware.
When asking for prices, always get a credit card (tarjeta) quote, peso and US dollars/cash. We found the prices about 10% - 12% less for US cash. The key is, most merchants don’t want to take plastic, even though many can. This doesn’t apply to very small merchants.)
Steve Bowman
Thanks Steve. This info is very useful.
Brazzie-
I rechecked some of my figures for major purchase. I see 8 - 10% as a more common discount for USD cash vs. credit card.
The 12% is a voluntary discount for repeat, good customers, over a short period of time.
Steve Bowman
Steve, thanks for the update. These new numbers are closer to what I experienced in Montevideo. I noticed that depending on the business, you only get the cash discount if you ask for it.
Thanks for a very informative website! Me and my wife are travelling to Uruguay on the 16 April 2007 to look into the possibility to retire there. As it is - a person is very used to his country’s sysytems of payment. Because of our very very high crime you don’t go with cash in hand and every shop excepts the card! Would you suggest we change this way to go with cash in hand when in Uruguay? We come from South Africa! Thanks and gracias!
Neels
Hi Neels, I would plan on using the ATM card from your local bank (check to see if has a Cirrus or Maestro logo on the back). Ask your bank if in doubt. If your card is not part of the Cirrus network, I would recommend bringing enough cash to cover your basic needs. In any case, I would aways bring some US dollars. Most hotels have an in room safe. If you do not want to bring cash and wish to rely solely on your ATM card (and credit cards), make sure you have someone back home that can wire you money using Western Union, in case you run into difficulties.
Cheers, Brazzie