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Why are some things so overpriced in Thailand and others not?


Tmymaimee

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I'm not American. And I'm not complaining...I'm asking why something that costs $2000 in the US is 140,000 baht in Thailand. Even taking into account bulk shipping rates (maybe $200 for the pool table) and VAT, why the disparity? If someone said it was because a pool table is a "luxury good" then why are some other luxury goods priced in line with US prices plus shipping and VAT?

I emailed the pool table dealer for an explanation. If in fact its just opportunity, then why would someone not set up a mail order import business to take advantage of these price differences? Are Thai people not motivated to make money when they see these types of opportunities?

Someone could set up weekly shipping from Oregon (being tax free) and just fill containers based on prepaid orders for everything from tools, hardware, hobby supplies or anything else not available at a fair price in Thailand.

doesn't American tools run on 120 volts

???

Yes, or for heavier items such as my air compressors, 220/240v.

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Price disparity is not because of high taxes or duties, but due to market. For example, price of shaving machines in here is too expensive. Why? Because you can't sell them to Thai men, as they don't have any beard and they proudly keep their mustache (if they have any). Price of espresso machines are also very expensive. Why? Because an average Thai won't buy it, and so called Hi-so people (Rich in terms of cash, but poor in terms of culture, behaviour, kindness etc) don't look at price tags when they are buying it with the credit card.

You'll notice, if some vegetable / fruit is consumed by Thais, it is most likely cheap(ish). If it is import and only consumed by farangs, get ready to pay premium prices.

Another example: You can buy Salmon fillet frozen from Norway for 500 baht / KG in Foodland, fresh salmon (not frozen) is sold 850-1000-1200 baht per kilogram everywhere else. Its funny, I can buy Salmon from Norway (unfrozen, fresh) in my homecountry around 400 baht/KG.

You have to change your priorities here in Thailand. It isn't the best place to live if you want to keep your old life standards here.

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I noticed the fitness gyms here in Thailand are VERY high! I would think it would be cheaper here Thailand. I know the gym equipment would be expensive to buy, because of the weight cost in shipping, but come on...the gyms can make the back within a few months. Rent is cheap here. Fitness First gym is over 2000+ baht a month.

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Price disparity is not because of high taxes or duties, but due to market. For example, price of shaving machines in here is too expensive. Why? Because you can't sell them to Thai men, as they don't have any beard and they proudly keep their mustache (if they have any). Price of espresso machines are also very expensive. Why? Because an average Thai won't buy it, and so called Hi-so people (Rich in terms of cash, but poor in terms of culture, behaviour, kindness etc) don't look at price tags when they are buying it with the credit card.

You'll notice, if some vegetable / fruit is consumed by Thais, it is most likely cheap(ish). If it is import and only consumed by farangs, get ready to pay premium prices.

Another example: You can buy Salmon fillet frozen from Norway for 500 baht / KG in Foodland, fresh salmon (not frozen) is sold 850-1000-1200 baht per kilogram everywhere else. Its funny, I can buy Salmon from Norway (unfrozen, fresh) in my homecountry around 400 baht/KG.

You have to change your priorities here in Thailand. It isn't the best place to live if you want to keep your old life standards here.

There is also limited competition and customs tends to wallop private imports that hurt designated distributors.

Domestic producers hide behind duties so anything that is imported that competes with domestic goods gets taxed disproportionately.

Edited by Thai at Heart
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I'm not American. And I'm not complaining...I'm asking why something that costs $2000 in the US is 140,000 baht in Thailand. Even taking into account bulk shipping rates (maybe $200 for the pool table) and VAT, why the disparity? If someone said it was because a pool table is a "luxury good" then why are some other luxury goods priced in line with US prices plus shipping and VAT?

I emailed the pool table dealer for an explanation. If in fact its just opportunity, then why would someone not set up a mail order import business to take advantage of these price differences? Are Thai people not motivated to make money when they see these types of opportunities?

Someone could set up weekly shipping from Oregon (being tax free) and just fill containers based on prepaid orders for everything from tools, hardware, hobby supplies or anything else not available at a fair price in Thailand.

what about the 60% import duty?????

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I'm not American. And I'm not complaining...I'm asking why something that costs $2000 in the US is 140,000 baht in Thailand. Even taking into account bulk shipping rates (maybe $200 for the pool table) and VAT, why the disparity? If someone said it was because a pool table is a "luxury good" then why are some other luxury goods priced in line with US prices plus shipping and VAT?

I emailed the pool table dealer for an explanation. If in fact its just opportunity, then why would someone not set up a mail order import business to take advantage of these price differences? Are Thai people not motivated to make money when they see these types of opportunities?

Someone could set up weekly shipping from Oregon (being tax free) and just fill containers based on prepaid orders for everything from tools, hardware, hobby supplies or anything else not available at a fair price in Thailand.

Hi

I hope you really enjoy yourself here. It certainly seems that you'll be bringing all the comforts of home. Good on you. Nice to have nice people here.

But yes, in answer to your question, you ARE missing something. There is no law that I'm aware of that states that something should cost an equivalent amount worldwide. If there is a disparity then you are correct, there may be an opportunity for you to exploit. Then again maybe not. There are import duties on many items in Thailand to be taken into account too if the good is imported. And there's the general hassle of trying to do anything in business in this country, which can add a few dollars to any item as well.

Cheers

TL

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Because you are American.

Nearly all, if not all Americans i know of complain about cost in LOSTD,

i dont know of any other nationality that complain,

on the contrary the rest think its cheap.

Most Americans complain about the prices in Europe and especially the UK where a pair of shoes cost a 100 GBP, the same pair of shoes in the US cost US $100. You must have money to burn in Europe.

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Because you are American.

Nearly all, if not all Americans i know of complain about cost in LOSTD,

i dont know of any other nationality that complain,

on the contrary the rest think its cheap.

That's because everything is cheap in America; we have Walmart.

Don't forget Target, Costco and Sam's Club.

Yeah, I guess we are spoiled. I'll certainly appreciate pricing in the US more if I ever go back.

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Pricing is the result of supply and demand.

Pricing on items bought mainly by foreigners, imported or domestic, is much higher than items bought by the general public. The best example of this is the price of butter as compared to other dairy products.

Most foreigners can afford to pay higher prices and the sellers are more than happy to charge higher prices.

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I am amazed that no one has mentioned the word 'globalization' in this discussion. No one has heard of it? What makes you think that the US has much of an industrial base left. Do you really think you can find much in a Wal-mart or Costco (other than food) that was actually made in the USA? Several years ago, I needed to buy a new pair of running shoes. Prices in Thailand are, on average, twice as much for the same shoe in the US. I asked a friend why the shoes were so expensive in Thailand. She said it was because the shoes were imported. Well, most athletic shoes are now made in Indonesia or China. Companies like Reebok, Addidas, New Balance, etc. all 'outsource' their work in the name of higher profits. Labor in Indonesia and China is cheaper than in Thailand and certainly more exploited. The difference in price for the same 'imported' item in Thailand or the US is certainly attributable to tariffs and taxes. Where was your i-phone made? Probably at Foxxconn in China where workers commit suicide because of unhuman work conditions. Where was your t-shirt or underwear made? Probably Bangladesh where factories collapse on workers and kill them. As for Thailand, there is a fairly large industrial base here. Thailand is becoming one of the largest auto producers in the world for both US, EU, and Japan companies. Some for computers, electronics and appliances. The reason I am here is because I can live here more cheaply in the US for the basics - rent, food, utilities, and healthcare. If you want to live a life of luxury in a place that isn't considered 'third-world', why are you here?

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Interesting - three friends that just came back from US (citizens) just came back with sticker shock from there on items they shopped for.....

My container - which also had a vehicle in it cost $2600 - Oakland to Laem Chabang - might want to shop around on that.....

I was advised that unless the furniture was very special or well built not to bother - some stuff does not do well in this climate + I like the teak and the pricing is reasonable for quality furniture (hard to find real quality in the US).

Some things like hot tubs, BBQ's, and I guess pool tables are much more costly here. I brought over a new wet smoker & was glad I did - the LPG place had to convert the hose but got it to work - not sure if the fill system is the same here as the US for filling a US tank....if you like to BBQ that might be one item to consider....

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I don't know what everyone is complaining about. Obviously, you people do not know where to shop. Shop at the the night bazaar. I just bought a brand new Rolex watch guaranteed original for 500 baht. LOL

On the other hand, last month I tried to buy a Panasonic camera that six different shops quoted me almost the exact same price of 20000 baht. Then I went to another camera shop near Tesco on the superhighway and they quoted me a price of 12000 baht. I figured it must be either a mistake or used. I gave them a 1000 baht deposit and got the camera the next day, sealed in the box.

This indicates to me that the import tax is one thing but the markup here must be outrageous.

Last year I tried to buy a Nikon lens that I could buy in the states for $700 US. Here it was $1100.

All computers, cameras and phones are 25-40% less in the states than here. It makes no sense to buy any of that stuff here. And my question how can the Thais afford any of that stuff? I used to think everyone was so poor here but they all have new $50k cars and new cameras and the best phones.

You stupid farongs have to stop paying those bar girls all that money. You are ruining life here for the rest of us poor foreigners!!

Edited by SCARLETIBIS1
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Because you are American.

Nearly all, if not all Americans i know of complain about cost in LOSTD,

i dont know of any other nationality that complain,

on the contrary the rest think its cheap.

South Africans.. they say cost of living for a comparable warm lifestyle is way higher..

I am sort of Brit and Euro.. Its a balance, lot of my luxury stuff costs way more, anything good (audiophile hifi, home theater gear, cars, motorbikes, gaming, etc etc etc etc) and hence you tend to shop lower on the quality level here than I would back there.

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I'm not American. And I'm not complaining...I'm asking why something that costs $2000 in the US is 140,000 baht in Thailand. Even taking into account bulk shipping rates (maybe $200 for the pool table) and VAT, why the disparity? If someone said it was because a pool table is a "luxury good" then why are some other luxury goods priced in line with US prices plus shipping and VAT?

I emailed the pool table dealer for an explanation. If in fact its just opportunity, then why would someone not set up a mail order import business to take advantage of these price differences? Are Thai people not motivated to make money when they see these types of opportunities?

Someone could set up weekly shipping from Oregon (being tax free) and just fill containers based on prepaid orders for everything from tools, hardware, hobby supplies or anything else not available at a fair price in Thailand.

There is a 60% tax on some luxury goods and that is over the price plus shipping. Then the seller in Thailand wants to make some money and because its not a high turnover good the markup is higher.

Is there an actual published list of these items or is it at the discretion of the Thai Customs agent? I'm not too worried about the used household goods but would like to import a new pool table and an arcade pinball game along with used personal goods under a Thai name.

Pinball machines are like one armed bandits illegal.. They are considered gaming machines..

My buddy imported one.. Called it "illuminated furniture" or something and had to pay a minor bribe.

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How will your Thai friend clear your goods tax and duty free? That have recently lived in the states for a year and returned to Thailand?

Yes, 7 years in Canada. For what its worth, the ex wife was in Thailand for the past year and no taxes or duties on anything yet the rules say the Thai must be outside the country for the past year. Maybe the Customs people aren't too hard on this rule provided the goods belong to the importer who is Thai.

I imported a few pallets of household effects (by air tho) and the rules didnt matter..

Yes legally we should have been allowed tax free import.. I had all the customs info in Thai and english printed out section by section.. Once they had my stuff it was a negotiation.. To play hardball they then spread my stuff around a non secure place where anyone could steal some.. I kicked up a fuss and he said "hey maybe we have to open up those 3000 usd a pair marble speakers to check inside"..

Just par for the course.

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Many wealthy Thais fly to Singapore to buy designer clothes/bags/watches and so on, they don't want the cheap copy stuff you can buy here.

As for cars, unless you are loaded only buy local produced cars/truck, I do. No way I gonna spend 5 mill baht on a BMW that is only worth 1.5 mill baht.

Fuel is cheap here compared to Denmark, about 1/2 price, don't know about fuel prices in the US?

Or Hong Kong. I think in both Singapore and Hong Kong, the cost of most imported designer clothes/bags/watches etc. that you have mentioned are effectively sold duty free (especially in Hong Kong) while in Thailand they are far more expensive making the combined cost of a flight ticket, a nice hotel, meals, local transport and the goods cheaper than if those Thais stayed and purchased these goods at Paragon in Bangkok.

Fuel is generally more expensive in Thailand than the US, roughly around 20% more expensive though unlike in Thailand, where fuel prices are more or less standardized throughout the country with the provinces being only slightly more expensive than Bangkok and Chonburi, in the US regional differences can be quite stark - fuel prices in Texas are a fair bit lower than in California or New York for example. Even so, fuel prices in California are still lower than anywhere in Thailand.

Fuel prices in Australia are more or less on par with fuel prices in Thailand - diesel is usually a bit cheaper in Thailand since diesel is often more expensive than unleaded in Australia, but given that Aussies earn 10 times more than Thais, fuel is still much more affordable for your average Aussie than for an average Thai.

Last time I went to Malaysia, fuel prices were about half of those in Thailand. I wonder if this is still the case.

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About the F-150 pickup, I haven't seen even one in Thailand, except Lao registered ones temporarily traveling inside THailand usually near the borders with Laos. Of course the main reason is probably because the import taxes would be so huge that your US$28,000 truck would suddenly cost upwards of US$100,000 equivalent in Baht.

In Laos and Cambodia, you can purchase an F-150, a Toyota Tundra or other American "full-size" trucks for a reasonable amount, of course accounting for shipping and some duties but not excessive amounts (perhaps US$50,000-60,000 compared to the US$28,000 list price in the USA). Hence why you see so many of them on the roads there but none in Thailand except for the Lao-registered ones that make it over as just mentioned.

^^ Absolute horse s**t

Dont know about Laos, I dont remember seeing full size trucks there..

But hes absolutely right on the money as far as cambodia.. All the tundras etc you want a cheap cheap prices.

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I don't know what everyone is complaining about. Obviously, you people do not know where to shop. Shop at the the night bazaar. I just bought a brand new Rolex watch guaranteed original for 500 baht. LOL

On the other hand, last month I tried to buy a Panasonic camera that six different shops quoted me almost the exact same price of 20000 baht. Then I went to another camera shop near Tesco on the superhighway and they quoted me a price of 12000 baht. I figured it must be either a mistake or used. I gave them a 1000 baht deposit and got the camera the next day, sealed in the box.

This indicates to me that the import tax is one thing but the markup here must be outrageous.

Last year I tried to buy a Nikon lens that I could buy in the states for $700 US. Here it was $1100.

All computers, cameras and phones are 25-40% less in the states than here. It makes no sense to buy any of that stuff here. And my question how can the Thais afford any of that stuff? I used to think everyone was so poor here but they all have new $50k cars and new cameras and the best phones.

You stupid farongs have to stop paying those bar girls all that money. You are ruining life here for the rest of us poor foreigners!!

I used to think that electronics and the like were cheaper in Thailand than in Australia. In Singapore, prices were definitely lower than in Australia but these days Thailand is way more expensive - many items are about 20-30% more expensive than in Aus (of course the USA is cheaper still). So it's true - there is little point in purchasing electronic items in Thailand anymore - the only reason I still choose to purchase laptops in Thailand is due to the ability to bargain a little and because the shop will take my old laptop and give me a decent price on it. There is effectively no second-hand market for electronic items in Australia or the USA - if it's old, you trash it. Although you could always take it to a pawn shop, but you'd be lucky to get 1/4 of the price you would get for it in Thailand. That's the only area where prices balance themselves out in Thailand because if I want to buy a 20,000 Baht Toshiba laptop and I can get 7,000 Baht on my old laptop, plus 1,000 Baht for windows 8 and other programs installed, my laptop will have only cost me 14,000 Baht. Not a bad deal if you ask me.

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to answer OP:

it works like this:

Businesses in USA have free competition and they are ridiculously low margin. I do mean ridiculously!

retail employees get paid minimum wage of 7.5 per hour and they would not survive without government subsidy.

there are very low import duties

these huge companies DICTATE to manufacturers what they are going to pay for everything because their volume is so high.

America is a consumer culture with very little savings and Americans live to consume and shop. Our job is to enjoy all the stuff the rest of the world makes! In exchange for consuming everything, we protect the world with our military and ease dropping NSA capabilities!

Thailand does everything to protect it's manufacturers. They don't want competition because nobody would buy the shit they make here because their manufacturers are less efficient than China.

However there is something very cheap in Thailand and that is human labor. That is probably why you are coming here. Because you are horny.

Erm, no, this is not correct. Retail margins are low everywhere, speaking as someone who works for a Thai manufacturer and ships all over the world. I have also been on the trading side in both Europe and the US and actually the margins across Europe are just as low.

Different kinds of products achieve different margins, there is no generic answer to margin achievement. Retailers do not dictate what they are going to pay, ever, in fact there are only a small handful of retailers in the US with real volume who have retail outlets across the entire US. Wallmart for example have huge volumes as they are the biggest retailer in the world but there is also Tesco and Carrefour who are also huge and not present in the US.

Thailand does protect it's manufacturers but Thailand is also a huge exporter, in fact it is now the 9th biggest importer into the US and growing which is why it is losing some of it's GSP privileges, hardly a country where no one would buy their shit! Thailand has some excellent manufacturing capabilities, where do you think the vast majority of hardrives are made? Also look up the auto manufacturing and up until recently with the governments stupid policy they were by far the worlds number 1 exporter of rice (which is regarded as some of the best quality rice in the world).

Thailand basically has some very questionable policies on import duties which sooner or later they will have to address. This puts prices of things very high if they are imported. in addition retailers take advantage of pricing. For example I was interested in buying a Triumph motorbike, they now have a big manufacturing plant in Thailand which i thought was great because the import duty on bigger motorbikes is crazy (have a look at how much a Harley costs here). However when i enquired at the dealership in bangkok the price was still twice as much as I can buy it in the UK AFTER it is imported back,, so nothing to do with duty, just retailers taking advantage of the situation.

Before I make this last comment let me be clear, i do love America, I like most things about the country BUT your comment about America being the "protector" of the world,, oh dear. I suggest you watch Team America World Police..

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About the F-150 pickup, I haven't seen even one in Thailand, except Lao registered ones temporarily traveling inside THailand usually near the borders with Laos. Of course the main reason is probably because the import taxes would be so huge that your US$28,000 truck would suddenly cost upwards of US$100,000 equivalent in Baht.

In Laos and Cambodia, you can purchase an F-150, a Toyota Tundra or other American "full-size" trucks for a reasonable amount, of course accounting for shipping and some duties but not excessive amounts (perhaps US$50,000-60,000 compared to the US$28,000 list price in the USA). Hence why you see so many of them on the roads there but none in Thailand except for the Lao-registered ones that make it over as just mentioned.

^^ Absolute horse s**t

Dont know about Laos, I dont remember seeing full size trucks there..

But hes absolutely right on the money as far as cambodia.. All the tundras etc you want a cheap cheap prices.

There's more full size trucks in Cambodia than in Laos, that's true. But Laos is catching up...go to Ford Laos in Vientiane, and you can buy a full US spec F-150, the odometer will show miles not km (except in small print on the inside) and all the other specs are just like back in the USA. You won't even be able to get a Lao language manual (indeed, you generally can't get a Lao manual even for a Ford Ranger, but anyway, it's not like there would be much demand for one anyway).

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Because you are American.

Nearly all, if not all Americans i know of complain about cost in LOSTD,

i dont know of any other nationality that complain,

on the contrary the rest think its cheap.

That's because everything is cheap in America; we have Walmart.

More importantly, America has China. :-D

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All computers, cameras and phones are 25-40% less in the states than here. It makes no sense to buy any of that stuff here. And my question how can the Thais afford any of that stuff? I used to think everyone was so poor here but they all have new $50k cars and new cameras and the best phones.

Ever hear of getting a loan from a bank or using a credit card? Thai, like most other people in the world, are amassing a huge amount of consumer debt.

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to answer OP:

it works like this:

Businesses in USA have free competition and they are ridiculously low margin. I do mean ridiculously!

retail employees get paid minimum wage of 7.5 per hour and they would not survive without government subsidy.

there are very low import duties

these huge companies DICTATE to manufacturers what they are going to pay for everything because their volume is so high.

America is a consumer culture with very little savings and Americans live to consume and shop. Our job is to enjoy all the stuff the rest of the world makes! In exchange for consuming everything, we protect the world with our military and ease dropping NSA capabilities!

Thailand does everything to protect it's manufacturers. They don't want competition because nobody would buy the shit they make here because their manufacturers are less efficient than China.

However there is something very cheap in Thailand and that is human labor. That is probably why you are coming here. Because you are horny.

Erm, no, this is not correct. Retail margins are low everywhere, speaking as someone who works for a Thai manufacturer and ships all over the world. I have also been on the trading side in both Europe and the US and actually the margins across Europe are just as low.

Different kinds of products achieve different margins, there is no generic answer to margin achievement. Retailers do not dictate what they are going to pay, ever, in fact there are only a small handful of retailers in the US with real volume who have retail outlets across the entire US. Wallmart for example have huge volumes as they are the biggest retailer in the world but there is also Tesco and Carrefour who are also huge and not present in the US.

Thailand does protect it's manufacturers but Thailand is also a huge exporter, in fact it is now the 9th biggest importer into the US and growing which is why it is losing some of it's GSP privileges, hardly a country where no one would buy their shit! Thailand has some excellent manufacturing capabilities, where do you think the vast majority of hardrives are made? Also look up the auto manufacturing and up until recently with the governments stupid policy they were by far the worlds number 1 exporter of rice (which is regarded as some of the best quality rice in the world).

Thailand basically has some very questionable policies on import duties which sooner or later they will have to address. This puts prices of things very high if they are imported. in addition retailers take advantage of pricing. For example I was interested in buying a Triumph motorbike, they now have a big manufacturing plant in Thailand which i thought was great because the import duty on bigger motorbikes is crazy (have a look at how much a Harley costs here). However when i enquired at the dealership in bangkok the price was still twice as much as I can buy it in the UK AFTER it is imported back,, so nothing to do with duty, just retailers taking advantage of the situation.

Before I make this last comment let me be clear, i do love America, I like most things about the country BUT your comment about America being the "protector" of the world,, oh dear. I suggest you watch Team America World Police..

You forgot to mention that Thailand is a very attractive place for foreigh investors. At Thailand's many 'Industrial Estates' it is possible for a foreign company to buy land in fee simple. In addition, a foreign company can operate as a wholly owned subsidiary of it's parent company. This makes it possible to repatriate all profits to the corporate headquarters.

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to answer OP:

it works like this:

Businesses in USA have free competition and they are ridiculously low margin. I do mean ridiculously!

retail employees get paid minimum wage of 7.5 per hour and they would not survive without government subsidy.

there are very low import duties

these huge companies DICTATE to manufacturers what they are going to pay for everything because their volume is so high.

America is a consumer culture with very little savings and Americans live to consume and shop. Our job is to enjoy all the stuff the rest of the world makes! In exchange for consuming everything, we protect the world with our military and ease dropping NSA capabilities!

Thailand does everything to protect it's manufacturers. They don't want competition because nobody would buy the shit they make here because their manufacturers are less efficient than China.

However there is something very cheap in Thailand and that is human labor. That is probably why you are coming here. Because you are horny.

I don't understand the "China" argument? There is a free trade agreement between China and ASEAN countries. Most imports from China to Thailand come in duty free so there is no protection for Thai manufacturing. Agree on the crap manufacturing standard of Thai companies though. We tried to source most of our components locally when first setting up manufacturing here. However lack of anything that resembles service, prices and many quality issues have forced us to import a lot of components from China.

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I'm not American. And I'm not complaining...I'm asking why something that costs $2000 in the US is 140,000 baht in Thailand. Even taking into account bulk shipping rates (maybe $200 for the pool table) and VAT, why the disparity? If someone said it was because a pool table is a "luxury good" then why are some other luxury goods priced in line with US prices plus shipping and VAT?

I emailed the pool table dealer for an explanation. If in fact its just opportunity, then why would someone not set up a mail order import business to take advantage of these price differences? Are Thai people not motivated to make money when they see these types of opportunities?

Someone could set up weekly shipping from Oregon (being tax free) and just fill containers based on prepaid orders for everything from tools, hardware, hobby supplies or anything else not available at a fair price in Thailand.

It's plain profiteering and greed. Sales Tax in Thailand is 7%, In Germany 19% yet all TV's, HiFi, Tablets, PC's etc etc. are cheaper in Germany even though most of them are manufactured in Asia (often Thailand) and then transported half way around the world to Europe.

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