Category: Ecuador for Investors

This week I finished installing the irrigation system for my one hectare (2.2 acres) Stevia lot.

There were a few different options… install a drip irrigation system or a sprinkler system. My part-time farm manager with experience in Stevia said for this crop a sprinkler system is fine.

The quotes I was getting for installing the drip systems were $3-4,000 USD for the hectare.

The spinkler system about half that.

All said and done the sprinkler system came to $1,400 materials, $300 for the 5 horsepower Briggs-Stratton American gas pump, and $250 for the installation. Total $1950.

Duration of installation: 3 days.

There were cheaper Chinese pumps available in the $200 range but I went with an American brand.

But as soon as my manager saw the installed system as per the photo below, he said I should have used more powerful sprinklers and I would have put fewer lines and saved a lot, for a hectare he says I should have spent around $800 in materials. Overspent there. Live and learn.

Also, after a week of irrigating the land pre-arrival of the plants I´ve learned an important lesson, DON´T buy a gas pump! Go electric if humanly possible even though the electric pumps may cost triple that of the gas pumps, and it may be a hassle to get an electric connection nearby. It is not only cheaper in the long run but much less of a hassle also to not have to be going to gas stations every other day and filling up the 5 gallon jug.

Little things my manager probably should have told me but hey, now I know.

Only 4 more days left in the HALF PRICE special on my new Insiders Guide to Random Importing to Ecuador, a brief yet useful guide of the most profitable items to bring back from Colombia or the USA to Ecuador for the casual traveler or expat in Ecuador. This guide is ideal for ANYONE looking to travel to Ecuador (or for an expat living in Ecuador) that goes back frequently to the United States or Canada looking to make a few extra bucks.

Why not have your trip pay for itself, and more?

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After 3 days here on the border of Colombia and Ecuador it’s become evident where in Ecuador I’d start a business right now.

Ipiales, Colombia.

I know, technically it’s not Ecuador, but it’s close enough, it’s a smallish town about 5 minutes from the border of Colombia and Ecuador.

Why Ipiales?

Ipiales offers a chance to sell to Ecuadorians without actually having to import to Ecuador.

Each weekend a sea of Ecuadorians swarm the shops and fill the hotels and restaurants of this small town.

In just 2 days I’ve spent over $800 USD and of the thousands that come each week to take advantage of the favorable exchange rate, which is currently one of the most depreciated currencies of the last year against the dollar, I’m sure I’m below the average spend.

What specifically would I sell?

I cover that and more in my new Insiders Guide to Random Importing to Ecuador, a brief yet useful guide of the most profitable items to bring back from Colombia or the USA to Ecuador for the casual traveler or expat in Ecuador. This guide is ideal for ANYONE looking to travel to Ecuador (or for an expat living in Ecuador) that goes back frequently to the United States or Canada looking to make a few extra bucks.

Why not have your trip pay for itself, and more?

If you liked this article, you’d love my weekly newsletter, revealing everything you need to know BEFORE you invest in Ecuador. Unsubscribe at any time:

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Day 2 here in Colombia, and I´m quickly learning the ropes.

What´s cheaper than Ecuador, what´s not, and what´s a LOT cheaper.

But I´ve learned that just as important as knowing what to buy is HOW to buy?

To get the best deals in Colombia pay for EVERYTHING on credit card!

Why?

If you take dollars to exchange to pesos you will get a really lousy exchange rate, right now on the street and in the banks its around $2680 pesos to $1 USD.

If you take out of the ATMs using your Ecuadorian or international bank card like I did directly into pesos you will get hit with several nasty surcharges.

To be specific, I took out $100 USD worth of pesos from my Ecuadorian Banco Pichincha ATM card and I got nabbed with about $10 in fees!

But… if you buy things with a credit card you will get without a doubt the best rate once the purchase is converted over to your currency, actually, you will get the official exchange rate of $3125 pesos to $1 USD. No extra fees.

So forget the cash, and take a few credit cards on a side trip from Ecuador to Colombia and take advantage of one of the most devalued currencies in the world over the last year!

So far so good, I already bought one item I need for my business in Ecuador that in Ecuador costs $700, here I got it for $265! Learn about it and many more of the most profitable items to bring back from Colombia to Ecuador in my new Insiders Guide to Random Importing to Ecuador, ideal for ANYONE looking to travel to Ecuador (or for an expat living in Ecuador) that goes back frequently to the United States or Canada looking to make a few extra bucks.

Why not have your trip pay for itself, and more?

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Today, I´m checking in from the border of Ecuador and Colombia, where I´ve never seen anything like this!

There is currently a 3 hour line up of cars on the Ecuadorian side waiting to get into Colombia!

Why the incredible mass exodus from Ecuador?

When I lived in Colombia 7 years ago, the peso-USD echange rate hoovered around $2200 Pesos to 1 USD.

Last year, when I visited Colombia in October of 2014 the peso was at around $1800 to 1 USD or around where it´s been for the last decade.

Now, as of the last few weeks, the peso is at a record low against the dollar, $3125 pesos to 1 USD.

In other words, the dollar has almost doubled in value, or another way to think about it is that you can buy twice as many pesos as a year ago!

No sense sugar-coating it. Overall, for the last decade Ecuador was cheaper than Colombia, but now, on most things Colombia has Ecuador beat!

And Ecuadorians know it, as the border is only 4 hrs from one of Ecuadors largest cities, Quito, many are making weekend trips to go shopping.

Which is a great idea right now for anyone living in Ecuador.

Heck, I´m here.

So, specifically what is best to bring back from Colombia or the USA?

Why not have your trip pay for itself, and more?

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Living abroad my philosophy is simple… ‘if I see all the locals jumping off a bridge, I’m jumping too!’

There must be a good reason.

So, working in an airport hotel in Quito, I can’t help but notice that literally ALL of my Ecuadorian clients are coming back to Ecuador from abroad with one big rectangular box…

A TV box.

So I noticed, and researched it.

Now I see why.

A 50 inch Samsung LED Smart TV like this one at Walmart in the USA for sale at $597 costs roughly $1500 USD here in Ecuador both at the stores (I checked) and online on the Ecuador version of eBay Mercadolibre.

Or a generic 50 inch LED Smart TV like this one can be had for $348 at Walmart. A generic one in Ecuador goes for around $900.

Big difference!

But nothing is ever that simple. The reason for the difference is the import restrictions/ taxes.

You can only bring ONE TV down per year per person.

And after speaking to a client of mine at the hotel that just brought a 55 inch TV down 3 days ago, he said for TVs over 50 inches you pay $250 cash in taxes upon arrival to the airport in Ecuador. For smaller Tvs you may pay even more, he said. he continued, the deal now is bringing a TV over 50 inches.

And if you are moving here you are allowed one in your previously approved by the Ecuador consulate shipment of household goods tax-free.

If you do bring one down I’d bring a brand Ecuadorians know like LG, Samsung or Sony as I think it’d be easier to sell.

Also, I’d bring a big screen Tv over 50 inches large as I think the margins are better.

Even paying the tax, there’s still a margin there of $500-600 dollars of you sell it locally!

Enough to cover a plane ticket!

Hey Grant (a friend of mine coming down tomorrow) you get this?

Why not take advantage of Ecuadors STRICT import regulations raising many prices locally?

Let me show you how.

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