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

Tmymaimee · August 9, 2013

Container is limited to about 16,000 Kg.

You also have local pickup in the US, local delivery in Thailand, processing fees etc.

As far as tax and duty, you are at the whim of the customs department.

A $2,000 Brunswick is a pretty low end table. I'm sure you can get something as good locally for less money.

Also, be advised, anything you pack in a container better be well packed and secure.

Delivery in Thailand on a flat deck is about 10,000 baht for a 3 hour radius. No duties or taxes on second hand personal goods for a Thai citizen with 1 year outside of Thailand.

The table price was only a comparison example. I'm sure the price difference widens on higher end tables.

So far my list is a few jet skis, bbq, bed frames and mattresses, linens, gas range, a few newer pinball games, bar furniture, patio furniture and pool table all purchased barely used on Ebay. Just a basic shipping of $4000 for the container and 75% off the Thai new prices will save me over $10k.

My only concern s what am I missing here as other people don't seem to do the same as my plans but I'm not sure why.

Nana Cowboy · August 9, 2013

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.

Walmart and Costco seem to be everywhere in Asia but Thailand and Philippines for some reason.

I have come across costco in S.Korea but I have never seen a walmart anywhere in my entire life.

Where are these walmarts?

on every busy street corner in the USA. Folks like you who havent seen or been in one are the reason many people think Thailand is soooo cheap. No way Walmart would operate in Thailand. Just walk into a Tesco or Big C and all they sell is junk plus aisles of cooking oil, rice, cockroach killer. LOL, its just a joke and Walmart wants no part of it...or any other top usa retailer like costco

Nana Cowboy · August 9, 2013

Of course the reason I am moving to Thailand is because of the girls. Can you think of a single reason otherwise? If it wasn't for sex, the world economy would collapse. No one goes to nightclubs to buy overpriced beer, drives a BMW to drop the kids off at daycare and why do women buy makeup and go to the hair salon? Where would Thailand be if the girls were fat and ugly?

no this is not true actually. check out the fools who go to Bed Supper Club and shell out huge bucks for example. All because the think it is "cool". LOL. You couldnt pay me to walk inside that place. I lived across the street for 10 years and never set foot in there, just laughed at those who did

Nana Cowboy · August 9, 2013

I think even a Walmart in LOS would have high prices due to the import duties. The US has free trade agreements with no import duties.

For instance, I bought a new Harley a couple of years ago in Oregon, US for $18,000 US and no sales tax. A good friend in Canada bought the same bike for US$25,000 due to Canada's import and sales taxes.

I bought a new loaded Ford F150 full 4 door, auto, 4x4 pickup with 4.6 ltr V8 engine for US$28,000 (874K baht) out the door with no sales tax. What would that cost me in LOS?

I could go on, but the internet will prove it. Things are really cheap in the US but by the time you pay duties to get them into Thailand, the duties can possibly equal what you paid for the items, doubling their price.

The USA is a paradise of cheap goods. Nowhere else comes close. As I stated non USA folks generally have no clue which is why they say "Thailand is so cheap". I stay in Thailand for my wife and I love living where I do. I do NOT stay in Thailand for cheapness of goods and services or anything else that requires purchasing. junk quality and high prices. there is more to life than goods and services so I'm happy to stay here forever. but I dread when I have to buy a big ticket item like a car. Anything I can buy in USA when on holiday I do so as long as I can bring it on the plane. I guess that leaves only cars and big screen TVs as only items I buy here. Oh and food. u gotta eat. as for shipping stuff here I say no thx. I dont wanna get involved in ripoff duties. As I stated earlier no USA chains of economically priced goods will never operate in this country. They have a reputation and standard of wide variety of good at low prices. Tesco please be our guest and have 20% of floor space cooking oil, rice, eggs and chicken. It's a joke really if you come from the US, the land of goods and services. No other country comes close

Tmymaimee · August 9, 2013

I think even a Walmart in LOS would have high prices due to the import duties. The US has free trade agreements with no import duties.

For instance, I bought a new Harley a couple of years ago in Oregon, US for $18,000 US and no sales tax. A good friend in Canada bought the same bike for US$25,000 due to Canada's import and sales taxes.

I bought a new loaded Ford F150 full 4 door, auto, 4x4 pickup with 4.6 ltr V8 engine for US$28,000 (874K baht) out the door with no sales tax. What would that cost me in LOS?

I could go on, but the internet will prove it. Things are really cheap in the US but by the time you pay duties to get them into Thailand, the duties can possibly equal what you paid for the items, doubling their price.

The USA is a paradise of cheap goods. Nowhere else comes close. As I stated non USA folks generally have no clue which is why they say "Thailand is so cheap". I stay in Thailand for my wife and I love living where I do. I do NOT stay in Thailand for cheapness of goods and services or anything else that requires purchasing. junk quality and high prices. there is more to life than goods and services so I'm happy to stay here forever. but I dread when I have to buy a big ticket item like a car. Anything I can buy in USA when on holiday I do so as long as I can bring it on the plane. I guess that leaves only cars and big screen TVs as only items I buy here. Oh and food. u gotta eat. as for shipping stuff here I say no thx. I dont wanna get involved in ripoff duties. As I stated earlier no USA chains of economically priced goods will never operate in this country. They have a reputation and standard of wide variety of good at low prices. Tesco please be our guest and have 20% of floor space cooking oil, rice, eggs and chicken. It's a joke really if you come from the US, the land of goods and services. No other country comes close

Canada comes pretty damn close except for gas and chicken/egg/milk prices

Nana Cowboy · August 9, 2013

yes you're right, Canada is cheap except for Food, Gas, Tobacco, Real Estate, Taxes. wait that is just about everything. seriously Canada doesn't come close. It's a ripoff country

Tomtomtom69 · August 9, 2013

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.

Depends where these goods come from and if an FTA with Thailand is in effect. If the pool tables in question were manufactured in Australia (which has an FTA with Thailand known as TAFTA), then they should not be much more expensive than in Australia, and only need to be slightly more expensive due to shipping costs, which shouldn't add a whole lot to the overall cost. Of course I strongly suspect that these pool tables are not manufactured in Australia or any other country with which Thailand has an FTA agreement, hence the huge price disparity.

Tomtomtom69 · August 9, 2013

I think even a Walmart in LOS would have high prices due to the import duties. The US has free trade agreements with no import duties.

For instance, I bought a new Harley a couple of years ago in Oregon, US for $18,000 US and no sales tax. A good friend in Canada bought the same bike for US$25,000 due to Canada's import and sales taxes.

I bought a new loaded Ford F150 full 4 door, auto, 4x4 pickup with 4.6 ltr V8 engine for US$28,000 (874K baht) out the door with no sales tax. What would that cost me in LOS?

I could go on, but the internet will prove it. Things are really cheap in the US but by the time you pay duties to get them into Thailand, the duties can possibly equal what you paid for the items, doubling their price.

The USA is a paradise of cheap goods. Nowhere else comes close. As I stated non USA folks generally have no clue which is why they say "Thailand is so cheap". I stay in Thailand for my wife and I love living where I do. I do NOT stay in Thailand for cheapness of goods and services or anything else that requires purchasing. junk quality and high prices. there is more to life than goods and services so I'm happy to stay here forever. but I dread when I have to buy a big ticket item like a car. Anything I can buy in USA when on holiday I do so as long as I can bring it on the plane. I guess that leaves only cars and big screen TVs as only items I buy here. Oh and food. u gotta eat. as for shipping stuff here I say no thx. I dont wanna get involved in ripoff duties. As I stated earlier no USA chains of economically priced goods will never operate in this country. They have a reputation and standard of wide variety of good at low prices. Tesco please be our guest and have 20% of floor space cooking oil, rice, eggs and chicken. It's a joke really if you come from the US, the land of goods and services. No other country comes close

You are right - and they say that China is the "land of the cheap". What a joke. Although traditionally it's wages and other inputs have been very cheap compared to other nations including the USA (hence why many countries started setting up shop in China) these days wages have risen dramatically and the prices for imported goods makes anything imported sold in Thailand look cheap.

2 years ago I remember a packet of Swiss made Kambly cookies sold in Wangfujing supermarket in Kunming selling for a ridiculous 85 Yuan or around US$12 at the time. In Bangkok they were selling the same cookies for around about 100 Baht or US$3.33. Nowadays the Bangkok price has risen to about 118 Baht or close to US$4, but the Chinese price is likely to be around 90 Yuan or something like US$14, now that the Yuan is worth more than back then. I'm pretty sure these Chinese prices are about the highest in the world for this item - just how ridiculous can you get? Protectionism? Well no...there are no competing Chinese cookie making firms that can make similar cookies and indeed, cookies aren't generally considered a staple of the Chinese diet. It is just price gouging at it's finest. Fortunately there are foreign-owned and run bakeries that bake up good cookies for a lot less so you don't have to buy the imported version that only millionaires can afford to buy on a regular basis. Ironically, Hong Kong, which is an external territory of China but nevertheless part of China sells anything imported at some of the lowest prices I've seen anywhere in the world. Australian imported yoghurt barely costs a dime more than in Australia when converted to Aussie currency and Argentinian or Chilean blueberries cost just HK$15 or about US$2 a punnet, compared to US$5+ in mainland China, even for locally produced ones.

However, I've also noticed that Chinese made versions of American, Japanese, Korean or European cars, possibly exactly the same models as in those other markets, i.e. Toyota Corollas and Camrys and Honda Citys etc. are more expensive than the same models sold in the USA, Canada, Australia or other markets even if some of them are imported into those countries (for example Hondas imported into Australia are still cheaper than Chinese manufactured Hondas sold locally). Other items like toys etc. "made in China" are suddenly expensive when sold locally but very cheap when they are dumped at Wal-Mart in the USA, or Target, K-Mart in the USA or Australia etc.

Tomtomtom69 · August 9, 2013

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.

farang000999 · August 9, 2013

Container is limited to about 16,000 Kg.

You also have local pickup in the US, local delivery in Thailand, processing fees etc.

As far as tax and duty, you are at the whim of the customs department.

A $2,000 Brunswick is a pretty low end table. I'm sure you can get something as good locally for less money.

Also, be advised, anything you pack in a container better be well packed and secure.

Delivery in Thailand on a flat deck is about 10,000 baht for a 3 hour radius. No duties or taxes on second hand personal goods for a Thai citizen with 1 year outside of Thailand.

The table price was only a comparison example. I'm sure the price difference widens on higher end tables.

So far my list is a few jet skis, bbq, bed frames and mattresses, linens, gas range, a few newer pinball games, bar furniture, patio furniture and pool table all purchased barely used on Ebay. Just a basic shipping of $4000 for the container and 75% off the Thai new prices will save me over $10k.

My only concern s what am I missing here as other people don't seem to do the same as my plans but I'm not sure why.

trying reading the thread again - lol .

samran · August 9, 2013

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.

In my experience the rule is a Thai must have been living in the country where the shipment originates for a minimum 12 months straight. No frequent returns to Thailand. Strictly enforced + you can't claim tax and duty free privilege 20 years after you returned to Thailand

yup, happened to me last month. Copped a 30,000 baht bill on our household goods as I hadn't been outside of Thailand for a full 12 months.

Tomtomtom69 · August 9, 2013

Sorry, China and Japan....my mistake.

I have come across costco in S.Korea but I have never seen a walmart anywhere in my entire life.

Where are these walmarts?

Walmarts in China are nothing like their counterparts back in the USA. They sell mostly unrecognizable low quality Chinese made crap at not even the lowest prices. While there is an imported food section, I see little reason to call the place "Wal-mart" when it is only a "Wal-mart" in name and nothing else. Many of the imported items aren't even branded as coming from Wal-mart America, but rather they come from all over, Korea, Japan, Thailand, Malaysia, Australia, France, Switzerland, the UK, New Zealand and only a few items even come from America.

Carrefours in China are somewhat better as they have some Carrefour branded products, sell better quality merchandise, more foreign imported products and seem to attract a more middle to lower upper class clientele - whereas Wal-marts attract more upper lower class or the lower middle classes. Even the food sections have so many expired and rotting foods they would embarrass Wal-mart executives in America if they knew about this.

PaullyW · August 9, 2013

Couple posters here have answered with good information. It's really market economics.

One factor is the shipping for things, especially heavy/large things that are not produced in Thailand.

One factor is the outrageous, archaic and wildly inconsistent import duties (as high as 70% on some items) that customs assess on some goods. Protecting local industry - I think not.

One factor (not to be understated) is similar to the poster who mentioned about there being less customers. That is true, but it is also true that luxury goods here (or just goods not produced in Thailand) are typically for a market of wealthy Thais and or non-Thais who traditionally should have way more than enough money to afford the items. So, it's a sort of classism. Don't forget that the wealthy Thais are stupidly wealthy compared to the non-wealthy. The income gap here is huge.

One major factor is the lack of a middle class in Thailand (something I read about on another thread which I am convinced about). There are essentially two classes in Thailand - wealthy and poor. You could further delineate of course, but the point is that the wealthy can afford the pricey stuff. The poor could never really.

One factor that I think affects things is that Thais, on average, don't seem to be very astute sellers of goods. In the stores, you will find

a good that was imported 2 years ago for a manufacturers suggested retail price of USD 100.00.

with shipping, customs taxes etc., the item may now have cost the shop a total of USD 150 to import (already including the retail price)

now the store needs to make a profit of course, so they mark it up even further to USD 200.00

2 years on, the item in the US is now terribly reduced in price because it's outdated and old. They are selling it in the US for USD 50.

In Thailand, the item is still 4x the price at USD 200.00. When you try to reason with them, they don't care as they would rather not sell the item rather than taking a loss.

Which leads to the last point - FACE. FACE certainly has a role in Thailand market economics.

EDIT to add:

Comparing really any market in the world to the US, you will find this type of variability. There truly is no market like the US market for goods. The market is massive, in a country that is still among the richest in the world, fiercely competitive, and whose products are often coveted not only in the US but also around the world. You can't find all these factors in any other, similarly large country.