Guatemalan purchasing decisions are primarily based on price, service, and quality. Direct sales by U.S. exporters to end-users, importers, wholesalers, and retailers are usually most successful when the product is well-known within the market, or when a limited number of large buyers exist. Direct sales are often supported by local advertising, sales promotion campaigns, technical or illustrative brochures, visits by salespeople, and in some cases, samples.

Sales via local agents and distributors are usually the most effective means of penetrating the market.  The U.S. exporter appoints a person or firm, which in turn, either promotes sales on a commission basis or purchases the merchandise and re-sells it. End-users and retailers generally do not have the time or experience to import directly, which involves handling customs clearance.

It is important to note that representation contracts are subject to the Agency, Distribution and Representation Law, contained in Congressional Decree No. 8-98, of February 4, 1998. According to this law, in Article 290, there are five instances by which a contract may be cancelled:

• As a result of mutual consent
• As per expiration date, if indicated in the contract
• As per the local agent’s decision, as long as it provides three-month notice.  In such case, the agent is subject to responding to all pending settlements according to the contract
• As per the principal’s decision, in which case it will be responsible for all damages to the agent, as a result of the termination
• As per fair cause, which includes all sorts of situations common to the termination of a commercial relationship

The law presents details of each situation. The Commercial Service recommends that U.S. companies consult an attorney familiar with local laws prior to entering into legal agreements.

Trade Promotion and Advertising  

The U.S. Commercial Service (CS Guatemala) of the U.S. Embassy in Guatemala City can provide contact information of local trade promotion associations. Please see the Principal Business Associations section for more information.

Advertising in Guatemala is usually conducted through the local media, such as newspapers, magazines, radio, and television. In recent years, the use of billboards displayed along highways has proliferated.  In addition, web based advertising, such as Facebook, Instagram and Twitter, remain primary tools for marketing.  

Emerging trends in Latin America show considerable growth in the online audience. Mobile phones and tablets continue to account for the growth in online traffic. This shift in the digital media landscape has changed the way marketers are communicating. Digital marketing is now at the core of the marketing mix in Latin America where consumer insights and channel selection are essential to creating successful marketing strategies. There are local and international companies offering digital marketing campaigns tailored to different budgets and needs.

Firms interested in advertising in Guatemala may wish to visit the following link for the names and contacts of the primary local media outlets: sib.gob.gt - Medios Informativos

Pricing

Price remains a critical factor in purchasing decisions within the Guatemalan private sector. The market is highly price-sensitive, and many Guatemalan businesses prefer sourcing directly from foreign exporters when locally available imported goods or services are perceived as overpriced.

To evaluate total product or shipment costs, companies typically account for the following components:

• Product F.O.B. cost
• Product freight and/or transportation cost 
• Product insurance cost
• Import duties
• Value added tax of 12%
   

Sales Service/Customer Support

After-sales service is a key purchasing consideration for Guatemalan importers, often influencing long-term business relationships and repeat sales. U.S. firms are generally well-regarded for the quality of their service and support compared to other foreign suppliers. To successfully enter and compete in the Guatemalan market, U.S. companies should prioritize a clear and consistent commitment to high-quality after-sales service for their buyers, agents, and distributors.

This commitment should be effectively communicated to local partners, as poor or inconsistent support can quickly damage a company’s reputation and reduce sales. Given the relatively small and interconnected nature of the Guatemalan business community, negative experiences with service providers—foreign or domestic—are often widely shared.

Although after-sales service is not mandated under Guatemala’s Commercial Code, many wholesalers, retailers, and representatives voluntarily offer such support, particularly in sectors such as household appliances, consumer electronics, telecommunications, IT equipment, and industrial machinery. While there are no legal requirements for product guarantees, most retailers provide warranties covering defects under normal usage conditions.

Local Professional Services

Professional services—such as those provided by attorneys, auditors, consultants, customs brokers, and financial advisors—play a critical role in supporting foreign businesses. These services are indispensable in matters including the preparation of agency and distribution agreements, incorporation of new companies, registration of patents and trademarks, debt recovery, enforcement of property rights, execution of powers of attorney, and trade arbitration.

As a matter of prudent business practice, U.S. firms are strongly advised to retain independent counsel and auditors rather than relying on those engaged by their local business counterparts.

The U.S. Commercial Service in Guatemala can provide a list of Business Service Providers upon request. It should be noted, however, that the U.S. Government does not endorse or recommend any specific attorney or professional.

Principal Business Associations  

Guatemala hosts a wide range of business associations, both cross-sectoral and industry-specific. The American Chamber of Commerce of Guatemala (AmCham Guatemala) is also highly active. Two other prominent business association include: the Coordinating Committee of Agricultural, Commercial, Industrial, and Finance associations (CACIF), which serves as an umbrella organization for seven chambers; and the Foundation for the Development of Guatemala (Fundesa).  

These associations play an important role in promoting economic growth, trade, competitiveness, and corporate social responsibility.

Limitations on Selling U.S. Products and Services

There are no significant limitations on selling U.S. products or services to the Guatemalan market, if the exporter or seller complies with the regulations and laws that apply to the specific product.