www.CostaRicaTicas.com

This is totally true!!! I was also paying her too much - $3.75 per hour. My novia told me that if you pay her that much, she will be very happy and won't work harder.

This blew me away - I think the other way around!

_________________
http://TipsCostaRica.com for pratical advice on living in Costa Rica.
In order to write about life, first you must live it! - E. Hemingway.

Your hotel owner pal was talking about worker's "economic insecurity", quite common among those who only work to survive. That phenomenon is rare among those who work to thrive.
The avatar denotes those who financially contribute to the Board, not just informationally contribute. The better Brothers do both.

_________________
"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

thanks for posting chi....brought out some great discussion.

_________________
The Most Interesting Man in the World
"Stay thirsty my friends"

quote="Zebra"]QUOTE:

".....You have to pay your workers shit wages. I asked why. He said- If you pay them too much, they stop coming to work."

..........muy Tico![/quote]

Very true statement by the tico.What most of you guys miss the boat on is the short term thinking of most of the rest of the world's working class.Indonesia was my first experience in the international scene. I was involved in expanding one of my now ex wifes family factories.This particular one was a clothing plant.My supposedly brilliant idea was to give bonuses .30 per piece over the quota.And despite the protests and warnings of her family, I did it.Production did skyrocket for three weeks.One the third Friday pay was issued and the workers enjoyed a nice bonus.All said they would return on Monday.I returned to the plant on Monday with the specs for a large order, pretty darn proud of myself.
Walked in to find 10 people there , of a crew of 150. They told me everybody made enough money, so they headed to thier villages for Ramadan 2 weeks early.We had to bribe the ten to stay with free train tickets and recruit help from other factories to finish the order.

Chi, sorry that your business is having difficulties. For all you others who dream about moving to CR, I think that it would make sense to do so only after you secure a reliable pension from your US career. Starting a business in CR even for frequent visitors is fraught with unknown unknowns.

_________________
Providing humanitarian assistance to self employed chicas, one cash grant at a time.

Chi_trekker, You said you don't want our advice.
If true, skip to the second half of my post, where I respond to your comments.

You need to learn empathy, and consider how everything looks from your customers - and employees - viewpoint.
I am a student of human nature and could sell ice to Eskimos.
Did you notice my byline at the bottom of the post?

A business plan is worthless if it does not reflect reality.
I see too many biz plans that are written to support the dreams of a man, and have no chance of success.

You hired the wrong TICA, and kept her too long.
The best advice I can give you regarding employees is "If you think they aren't going to work out replace them immediately."
When you are in a business and an employee impresses you: HIRE THEM.
That is what I do everywhere, and it works.


It does show that you limit yourself from opportunities that may exist.
The secret codebook to CR business success is in the VIP section.

How many CRT guys do you think could help you with advice?
How many Ticas and Ticos do you think our members know?
Did you even consider offering a CRT discount?
You have been a member for 4 years and don't see the advantages of supporting this site?
You missed a bet there..........................


Yes
I opened 2 retail stores in SJO. Both are doing well.
I have no experience in either business (my background is aviation and big corporate business) but I did my homework.

I use a TICO as a front man in both stores, to avoid the stigma of being a foreign owned business.
How do I get loyalty, honesty and max effort from them?
I won't go into details but both TICOs are indebted to me (not financially) and fear me somewhat.
It cost me very little to create the sense of indebtedness.

I was kidding about the secret codebook to CR business success.
It is actually everywhere you look.
Pay attention to what works and what does not work in stores, (and the DR for that matter).

_________________
It is cheaper to pay now and get it over with.
It is also easier to get them to leave.

I tried to expand my US business brokerage operations to CR. My plan was to focus upon the gringo owned businesses and gringos wanting to buy businesses in CR. Although I spent 6 months just talking to bankers, accountants, attorneys and pretty much anyone who would talk with me I found that doing market research in CR is a waste of time.

It's similar to doing market research on a new product or service to be offered to local governments in the US. The response is always "we love it" to your face but they make fun of you behind your back when you leave, regardless of the merits of your idea. I think it's due to their passive-aggressive culture and in CR it's compounded by their minimal education system.

In both cultures (US local govt and CR), until such time as you can cross the "Tipping Point" by being verbally recommended by a leader who has "voice" with the rank and file decision makers you get nowhere. It is not a meritocracy as we gringos with new ideas may desire, but one in which communal decisions are valued, even if all know they are in fact inferior. In my opinion, this is why bribery is so pervasive in both cultures.

Since many Ticos do not read, have not read and will not read, the only way to influence their decision making is by persuading (or bribing) someone they admire or trust. In many ways, this seems similar to the influence black preachers exerted in introducing mortgage brokers in the US to their parishners who could not afford or understand the mortgages they were generously being provided. Some but certainly not all of the mortgages are now in default.

Chi - Sorry that all I have are comparisons rather than solutions. Hopefully they will be helpful to you in understanding your situation. As you and I have discussed in person, I find that my business values are not suited to doing business in CR. I find the family values in CR are not conducive to good families, the business ethics are not conducive to good business and the government values are certainly not conducive to good government. The only things that cause me to want to visit CR are you guys, the chicas and the healthcare.

I'm no longer an advocate of Costa Rica; certainly not for business. Mostly it's a country built upon lies. There is not a high literacy rate in CR. The high school educated Ticos/Ticas would be functionally illiterate even in the most under educated communities of the US. They certainly could not perform in any community college in the US....language differences aside. There is not a low crime rate. It's not a low cost place to live. Groceries cost me approx 30% more in CR than in Florida. Cars are twice the price because of Aduana. Car Insurance is outrageously priced for very poor coverage. Clothes are 50% more expensive for less quality. Electronics are twice the price. Houses are getting close to the now reduced prices in the US.

Now before you guys living in CR blast me, make sure that you can say that you have a frame of reference outside of CR for comparison other than just major US cities. For the past 2 years, I have been traveling back and forth and genuinely trying to give CR a chance. Several gringos whom I have met that have lived in CR for 10+ years are looking at Mexico, Brazil, Argentina as alternatives, primarily because of cost, crime and dealing with the Tico employees.

However, in my opinion, CR is still a great place for a retired single guy with a minimal pension to live and enjoy the company of a young chica (or 2, or 3, or 4). In the US, guys with a $1,500 per month pension typically live in a trailer park and chases fat trailer women. Living in CR with a $1,500 per month pension is certainly a more attractive alternative.

_________________
Slut Puppy in Training

Is low self esteem a prerequisite for being a good Ho or is it a result? ;-)

Chi, I run a small bussines here in the states.

The guy's who own the Del Rey are doing fine. Bill at Sportsmen is doing fine. Intel is doing fine. Gringo's are running bussineses in CR and making money. 98% of bussineses in the states are gone in 2 years. Need I say more.

I wish you luck. And thanks for all the info you have shared over the years.

Oh, Yea don't forget our buddy Tomas.

_________________
Take a walk on the wild side.

Hey Greengo--I'm all hip to finger bounce on the keys but 1 hour15 between bounces? Damn, Mister!! Did like the snatch...of poetry.

_________________
"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

Chi, Another thing I was thinking is that you never make money in bussiness before about three years. There is so much investment in time. Then after 5 to 7 years you should be able to make more than wages and start taking out money. This is the typical bussiness plan. You are just getting started. Give it a few more years. Think about how long Bill has been building away. Then you have to stay on top of it or it will disappear real fast.

Good luck. RED

_________________
Take a walk on the wild side.

Young entrepreneur ignoring dirty old fart. Check!

Don't hire a latin american sales team??? Now, how do you expect to run a business in latin america, without hiring latin salespeople? I suppose I should should just hire some lazy older gringos, with no spanish, and sit back and watch the sales rooolllll in.

I also suppose Citibank, who just opened private banking in CR, should only hire americans. Why not??? All the customers speak spanish. Imagine walking into a Citibank branch in LA and requiring a translator, because they only speak French????

Sheesh. Check!

_________________
http://TipsCostaRica.com for pratical advice on living in Costa Rica.
In order to write about life, first you must live it! - E. Hemingway.

Lenny,

Thanks for some feedback. Yours was actually solicited privately.

There was another member who posted about owning few retail stores in SJ El Centro. One of the most COMMON THINGS I see in this country, is a retail store opening (grand opening), a couple of months of operation, then a BUSINESS CLOSING FIRESALE. I suppose most are latino owners who have a streak of luck and a bunch of money stuffed in the mattress. On a wing a prayer, with zero plan, they decide to open a business and run out of money. Then shutdown.

That said, I'm not judging anything you have done and wish you all the best of success. I was looking at a few retail stores and decided retail is not me.

Lenny - I have been studying and re-jiggering my plan a bit. One thing that I have learned a LOT about lately is the legal system in CR. We are used to a Common Law model, which was handed to use by England. Here they use a Civil Law model, which was inherited by Spain. The problem with the latter, is precedence doesn't rule. You can only judge based on legal codes. And there is SOOOOO MUCH CODE AND SOOO MUCH BEAURACRACY AND RED TAPE FOR EVERYTHING.. you have to get dirty and bribe people to get things done. Furthermore, what takes a week in the US you can expect to take months in CR.

I have to run, but will write more later... adios.

_________________
http://TipsCostaRica.com for pratical advice on living in Costa Rica.
In order to write about life, first you must live it! - E. Hemingway.

Chi, It was the legal system and the criminal justice system or lack thereof that caused me to finally decide to just pass on biz in CR. If you choose to do business with the upper crust Ticos you just need to know that any legal disputes are going to be decided in their favor irrespective of the law or what is truth, fact or right. If you need the criminal justice system because you are robbed, beaten or shot you need to know that nothing will happen. The attitude is that crimes against gringos are expected and gringos have insurance unless they are really stupid. In my opinion, Pura Vida really means - No accountability and no responsibility. It just seems to be the Tico way.

Frankly, it's just too much easier to do business elsewhere than put up with the Tico BS. The absence of an effective income tax system is not a valid reason to do biz in CR. What you save in income tax you pay in VAT and Aduana.

Since I pulled away and are telling my stories in Florida, I would hazard to guess how many investors have decided to pursue investing elsewhere. I'm just one outspoken person. Just imagine the impact if only ten people try to do business in CR and return to the US with a bad experience and they tell others. But you know, it's really only us gringos who care. The Ticos really could not care less.

So, rather than deal with the Ticos in biz, I'll just pursue biz with their wives, sisters and daughters.

_________________
Slut Puppy in Training

Is low self esteem a prerequisite for being a good Ho or is it a result? ;-)

Lennydo thanks for your insightful posts, based on my own limited "market research" I couldn't agree more. After considering a move to CR a couple years ago and seriously looked into making a living there and came to some of the same conclusions, especially that it's much easier to make $ elsewhere (like in the states). It didn't take long for me to see that the really happy and laid back expats are the ones that have already made their money or had an income from someplace else. Then there's the guys that have to get up and hustle everyday trying to make it in CR and I saw most of them struggling, stressed, depressed and complaining about the insanity of it all. I chose not to take a potential 75% pay cut by joining that group just for the upside of weather and women.

_________________

Living well is the best revenge
http://www.youtube.com/watch?v=MwUtj_YnNoY

Chi_trekker,
I'm curious what you hoped to accomplish by posting your story here?

You talk with arrogance that you know more than anyone about how to start a business in Costa Rica yet your business is still unsuccessful. You denigrate the comments and the members as a whole yet you continue to post in response to what they have to say, many of which were the same things I was thinking as I read your story.

It pains me to see anyone fail in business, especially a "member" of CRT, but you have to know your market and the territory in which you hope to operate.

Once upon a time I was taught that 75% of all start up businesses fail within the first year. That was for the USA and it was taught to me in high school business class over 35 years ago.

School teaches theory but there is no substitute for experience.

Perhaps you should do some serious research on your market and then listen to others who have gone before you before you try to push your viewpoint.

If you don't want feedback than I suggest you don't post on any website. If you can't handle constructive criticism then you'll be doomed to making the same mistakes.

Good luck, I hope things work out for you.

Wit