Salad Cream Economics

[Boater]

I love salad cream, and if you are unaware of what that is, then you’re missing out on something special. Until recently I was unable to buy it where I live in Phuket; however some savvy person has managed to get some on to the shelves. However it’s expensive and almost double what I would pay when I was living in the UK, but I am willing to pay this extra just so I can get that moment of pure taste sensation that you cannot get from any other salad dressing. So what is my point?

I have determined what the market value is of salad cream, as I pay the high price to buy it. Yes of course there our factors that dictate the price of that lush bottle of pure pleasure, but the bottom line is something is only worth what someone will pay for it.

If no one is willing to pay for it then that product – be it salad cream or property – is worth nothing.

The world’s most expensive home in 2010 is probably the custom built 27-floor towering mansion called Antilia in Mumbai India that is home to the fifth richest man in the world, Mr. Mukesh Ambani, head of petro-chemical giant Reliance Industries. With its double height ceilings, ballrooms, crystal chandeliers, retractable stages, and 600 servants this is one of the first US$1 billion homes. That is of course if you would pay $1 billion US for it.

Of course property values are influenced by many variables but to keep it simple, as I always like to do, you can break it down to two basic factors, economic forces and physical property characteristics.

Yes I would assume that the construction materials, land costs, and labor on this massive house would be very high and the economic forces would also come in to play to the value of this property – although I have to say, I am not up to date with economic forces within India – however does that mean that its market value is US$1 billion? No it does not, the fact that it is worth US$1 billion is because someone paid that for it.

So what is my point in all this? Last month I wrote how I would like to see values drop to try to help bolster the market here in Phuket. Trying to make the point that buyers need to be brought back – yes, I should have stayed in college and studied more, thank you for your feedback – but I look at things without trying to sit on the fence and see things from my eyes from working here for the past four years.

I want to help the whole of Phuket get back to the boom times and I just want people to realize that not everyone is willing to pay double the price for salad cream. Not everyone loves it as much as I do.

source - http://www.property-report.com/site/salad-cream-economics-9387

[BWPattaya]

The cost of buying the product in the UK, plus shipping costs, plus licence to import it, plus import taxes, plus overheads, and hopefully some profit on top of all the hassle - I don't know why someone went to the trouble of importing it. The profit margin must be minimal. Mind you, I hate the stuff.

[sandmike]

I've just checked a well known UK supermarket's online shop.

460g heinz salad cream is £1.50

here in the middle east a 250g bottle is £2.60

which is 3 times the price per gram of salad cream.

.

You're lucky only paying double price

Edited October 6, 2010 by sandmike

[ianguygil]

I've just checked a well known UK supermarket's online shop.

460g heinz salad cream is £1.50

here in the middle east a 250g bottle is £2.60

which is 3 times the price per gram of salad cream.

.

You're lucky only paying double price

I hate it too

But my wife is Japanese and they call almost exactly the same thing Mayonnaise (spelling). The brand is either Kewpie or Cuwpie (I forget the Romanization) and it is on sale at many Thai supermarkets (Tops etc.). It truly is almost identical, but you need to keep it refrigerated. It is much cheaper than the imported one. It is in a soft plastic squeeze bottle.

It is not like US Mayonnaise or the real French stuff. It is like English Salad Cream. And as I said, I hate it. My son and my wife love it. Go figure....

[RKASA]

Fair market value = Willing buyer and willing seller

Cost - is when you add the real numbers including any installation fees

Reason people sometimes lose money is they believe that cost and fair market are related and they are not.

You can get a lot for junk if you make people want it.

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