I must be missing something

[elgenon]

The USD has stayed the same with the baht over the last 18 months. Also, Americans are quite wealthy now due to the US stock market run up in recent years as well as the strong dollar.

There are a lot of Americans in Thailand and they can afford to pay high prices. It's supply and demand.

There really aren't that many Americans in the stock market. Most don't have that kind of extra money. You must have wealthy friends.

[elgenon]

Many American retirees live in Thailand. They are paid in USD, the world's reserve currency, very strong right now. In addition, as I said, they are wealthy due to the stock market run up. They have no problem with the prices at Big C and elsewhere.

First of all the topic is not about how many Americans live in Thailand or how wealthy they are, I'm sure the 46 million Americans on food stamps are not included in that wealth.

Secondly there are much more other nationalities, who's currency has got weaker, living in Thailand all together than there are Americans, so why would Thai companies have their price policy directed at a minority group of people.

You will know that UK is the most represented in Thailand, with Germans next and Australians third.

Thirdly, if it goes so well with the sale of their imported products, then explain to me why the amount of goods nearing expiration date, and be sold at 50% discount, has been at least six folded over the past months.

Wow! How did you figure the 6X Increase? You keep track of all the stores in Thailand? I would like to see your data so I know where to shop. Thanks!

[elgenon]

The USD has stayed the same with the baht over the last 18 months. Also, Americans are quite wealthy now due to the US stock market run up in recent years as well as the strong dollar.

There are a lot of Americans in Thailand and they can afford to pay high prices. It's supply and demand.

Strange, I read reports on here that there are not much Americans in Thailand due to the long travel distance, and also because Thailand is so much more expensive than the US or other closer by holiday destinations.

You must also have missed the thread Leaving Thailand for good which are mainly Americans who return home.

So what Big C or Tesco, which are European companies have to do with America is beyond me.

Has nothing to do with Americans and the US dollar. Hard to find useful and accurate data but it appears that Americans are way down the list as expat residents. Japanese seem to be the high majority, with Brits and other Europeans way more than than Americans. Doubt very much that the run-up in the stock market has made many American expats rich as not all or indeed a majority have investments in stocks. As an American expat my own anecdotal experience is that i am always thrilled to meet a fellow American because it is so rare. Mostly Brits, Swedes and Aussies. Japanese stick to themselves. I read somewhere that Americans make up only 10% of tourist arrivals and that would translate into a correspondingly small number of American expats. But, you know, we Americans are to blame for everything. Oh, and yes, the 50% decline in oil prices too.

Yes, America to is to blame for everything bad, even in Thailand where few live or visit because of the distance. Also, have you ever noticed 90% of the Americans you do meet are from the coasts. The average American doesn't have a passport or the money to travel. Where do you live? I would like to meet Americans who are good conversationalists. The demise of America is constantly predicted as imminent. Still alive and kicking though! Just wait Until China is the leading superpower. THEN you will be happy. Coming soon to your world.

Sorry Williet this is not directed at you except for the conversing part.

[strikingsunset]

I have just read this thread,In my humble opinion the OP has made a very intelligent observation and does not deserve to be ridiculed for it.

I am currently living in Shanghai,we have similar issues here re pricing,for example a 200 gm pack of imported butter here is £ 2.80

A coffee ( but they cant make coffee) in Starbucks here is around £ 4......................

[TheAppletons]

The guy has a very valid point, since western currencies lose their value, it should be cheaper to buy in thb.

Whats with people trying to make fun of him?

he is funny because he has failed to understand "supply & demand. maybe i can teach him quickly. ----if all 25 of da ho's in a bar charge 2500 bht for happy , then the police come and arrest 15 of them how much will the remaining ho's charge ? 4000 is the correct answer, they will increase the price due to the demand created by the coppers, no money will be lost due to the coppers action, this is s&d :-)

Actually, in your example, the police arresting 60% of the prostitutes would have reduced the supply of prostitutes in the bar not created demand for prostitution.

[jacko45k]

The price of something has little to do with the cost of procuring or manufacturing it....other than to set a minimum line.

The price is what ever people are prepared to pay.

They paid 190 baht last month, they will pay it this month too.

[Robert24]

The guy has a very valid point, since western currencies lose their value, it should be cheaper to buy in thb.

Whats with people trying to make fun of him?

Not making fun of him. I suspect his observation is to a very limited amount of products for which the sales volume is low and not much competition. I see many imported products have come down in price but granted they are not groceries in BigC.

[Robert24]

Price of BMW,Mercedes Benz etc should of gone down too, because of the very weak euro. But thats not the case either.

BMW and Mercedes dealers in Thailand are making a killer right now. 1 euro was 45thb 1 year ago, now it stands at 35thb.

2 points with regards to luxury products like BMW etc:

1) they are not price sensitive and generally producers of them have high margins on the products. For example whether your 5 series BM costs 100k more or less won't matter to the buyer. If they need buy one, they will.

2) I guess the majority of costs for BMs occur outside the Eurozone. Ie manufactured in China, raw materials in $ etc.

[ExpatOilWorker]

Salmon have dropped in price. You can get frozen salmon for 390 baht/kg now.

[Lukecan]

Price of BMW,Mercedes Benz etc should of gone down too, because of the very weak euro. But thats not the case either.

BMW and Mercedes dealers in Thailand are making a killer right now. 1 euro was 45thb 1 year ago, now it stands at 35thb.

2 points with regards to luxury products like BMW etc:

1) they are not price sensitive and generally producers of them have high margins on the products. For example whether your 5 series BM costs 100k more or less won't matter to the buyer. If they need buy one, they will.

2) I guess the majority of costs for BMs occur outside the Eurozone. Ie manufactured in China, raw materials in $ etc.

I think you're mistaking BMW,MERCEDES with the likes of Ferrari, Lamborghini.

BMW might be high end, but by no means can a 3 series be regarded as a luxury product. This isn't a ferrari california for gods sake.

People are still price sensitive when it comes to buying BMW,Mercedes, make it couple of 100 thousand baht more expensive, they'll have to settle for another brand.

Edited April 19, 2015 by Lukecan

[TheAppletons]

I think you're mistaking BMW,MERCEDES with the likes of Ferrari, Lamborghini.

BMW might be high end, but by no means can a 3 series be regarded as a luxury product. This isn't a ferrari california for gods sake.

People are still price sensitive when it comes to buying BMW,Mercedes, make it couple of 100 thousand baht more expensive, they'll have to settle for another brand.

BMW is a luxury brand....and in a country where many people cannot afford any vehicle whatsoever, a 3 series is most definitely considered a luxury product.

[recycler]

It is very simple, there is no competition in Thailand, the prices are fixed by a few companies (family conglomerates) that own everything.

They farm the country and exploit the labor force and we all including Thais pay high prices so they can optimize profits.

It's not just foreign products that are expensive here also many Thai products are cheaper abroad than here.

[Straight8]

Maybe you should start importing goods into Thailand. If your observation is correct, you could make a lot money.

May be you want to explain to me what's wrong with my observation.

I don't know if your observation is correct, I hardly ever go shopping in BigC etc. All I know is that if what you say is correct, you can make a killing by important goods and selling them cheaper than competition. Make sense?

Even if this was the case, for the average Joe it would not be so easy. Cost, red tape, etc etc, would just not be worth it.

If the likes of Giants like Tesco struggle in Thailand, as if any of us individuals can break into that side of the business.

[lostoday]

The OP wrote, "we all know that the cost of living in Thailand has gone up a lot." Nonsense. Rate of inflation is 2%.

I moved all my cash to Thailand when the dollar peaked. I know a lot of Americans who did the same thing. A lot of retired Americans here because they lived here in the 1960's as young men and have now retired.

The important budget items are lodging, utilities and transportation. For me those things have stayed the same for the past 5 years.

I buy at Lotus Diet Pepsi and it's been 25 baht big bottle for as long as I can remember. I also buy Gillette razor and blade 22 baht for as long as I can remember. My medication has gone down in price (patents expired). I would dispute the OP contention about 30% increase in food prices for Western items.

My Honda Click uses so little petrol that it might as well be electric, the amount is so small per month I can't even tell you what it is. My doctor told me not to eat cheese so I don't know how much that costs same with beer and whiskey.

I locked in lodging prices years ago by purchasing. Cooking gas is one bottle of gas every 6 months or so. My whole house AC costs around 1200 baht per month. Vegetables free and rice free from the family garden and family rice fields. I'm drying herbs right now as I type. I buy olive oil and coconut oil but not too much. I bake my own bread and make my own sausage. It does not take much thought or skill to live really cheap in Thailand.

I guess I could buy expensive canned tomato sauce from Italy but last week I paid 12 baht for a big bag of fresh plum tomatoes and boiled them down with my three different kinds of dried basil fresh onions and garlic and made my own sauce.

I'm retired and have the time to make tomato sauce and sausage; maybe that's the difference.

Below is the stock exchange from Thailand

Edited April 20, 2015 by lostoday

[Robert24]

Maybe you should start importing goods into Thailand. If your observation is correct, you could make a lot money.

May be you want to explain to me what's wrong with my observation.

I don't know if your observation is correct, I hardly ever go shopping in BigC etc. All I know is that if what you say is correct, you can make a killing by important goods and selling them cheaper than competition. Make sense?

Even if this was the case, for the average Joe it would not be so easy. Cost, red tape, etc etc, would just not be worth it.

If the likes of Giants like Tesco struggle in Thailand, as if any of us individuals can break into that side of the business.

It's actually not difficult to import products in Thailand. I've imported various things from China and Taiwan before and sold it again. Just start doing it, it's far easier than you think. And if this product is in demand and you can sell it say for 20% below the price of retailers like Makro, BiGC etc, then for sure you can make a killing from it.

However I suspect that the products referred to are probably low volume, low demand products. Or am I wrong? What groceries are imported and in high demand?

[Robert24]

It is very simple, there is no competition in Thailand, the prices are fixed by a few companies (family conglomerates) that own everything.

They farm the country and exploit the labor force and we all including Thais pay high prices so they can optimize profits.

It's not just foreign products that are expensive here also many Thai products are cheaper abroad than here.

That's not correct. Many industries are very competitive here. f&b industry, construction, electronic industry etc, banking, insurance etc.

[morrobay]

The USD has stayed the same with the baht over the last 18 months. Also, Americans are quite wealthy now due to the US stock market run up in recent years as well as the strong dollar.

There are a lot of Americans in Thailand and they can afford to pay high prices. It's supply and demand.

Strange, I read reports on here that there are not much Americans in Thailand due to the long travel distance, and also because Thailand is so much more expensive than the US or other closer by holiday destinations.

You must also have missed the thread Leaving Thailand for good which are mainly Americans who return home.

So what Big C or Tesco, which are European companies have to do with America is beyond me.

@ mesguite is missing alot more than that that on that off the wall reply. . In particular answering the OP. Prices are high on many imported goods because of protective high taxes. Take the very high cost of imported red wine for example. The only reason foreigners pay the high prices for imported wine is because Thailand could not give away their domestic wine.

Edited April 20, 2015 by morrobay

[morrobay]

The USD has stayed the same with the baht over the last 18 months. Also, Americans are quite wealthy now due to the US stock market run up in recent years as well as the strong dollar.

There are a lot of Americans in Thailand and they can afford to pay high prices. It's supply and demand.

There really aren't that many Americans in the stock market. Most don't have that kind of extra money. You must have wealthy friends.

Thats right , (on Bloomberg ? )they said 10% of Americans , U.S. own 80% of the stocks.

[ToddinChonburi]

All Farang food is imported so yes they are putting the screws to you. I f your willing to pay for it then do not complain it is cheaper to eat out than go to the grocery store.

I eat out as much as possible, 40 or 50 baht for a meal how can you shop for cheaper than that.

Get yourself a good bowl of Woon Sen Yen Ta Fo or Khao Moo Dang . Good Eaten !!!!

Edited April 20, 2015 by ToddinChonburi

[Naam]

Salmon have dropped in price. You can get frozen salmon for 390 baht/kg now.

Norway Issues Warnings About Health Dangers of Farmed Salmon

http://articles.mercola.com/sites/articles/archive/2013/07/09/farmed-salmon-dangers.aspx

[Naam]

All Farang food is imported so yes they are putting the screws to you. I f your willing to pay for it then do not complain it is cheaper to eat out than go to the grocery store.

I eat out as much as possible, 40 or 50 baht for a meal how can you shop for cheaper than that.

Get yourself a good bowl of Woon Sen Yen Ta Fo or Khao Moo Dang . Good Eaten !!!!

where do you get a Sirloin or T-Bone Steak for 40 or 50 Baht?

[Berkshire]

This thread is about what is the logic behind the fact that prices of imported goods rise, while they actually should decline because the value of the currency in which they are purchased has declined.

OP, you're really confusing basic business decisions with international currency exchange fluctuations when one has nothing to do with the other. Do you think the retail management checks the currency exchange rates of each country where products are imported from on that particular day? If that's the case, American products should be priced differently than French products because the dollar has been strong, correct? How about Chinese products? Fact is--and has already been pointed out--it's simply a function of supply and demand of niche imported products. Retailers can and should charge whatever the market will allow. It seems a lot of foreigners are willing to pay outrageous prices for imported products. Retailers would be stupid to charge less. I shop at the Rim Ping and I'm constantly amazed by the prices of basic imported food stuffs, but clearly, some people are willing to pay. Your choice.

[lostoday]

All Farang food is imported so yes they are putting the screws to you. I f your willing to pay for it then do not complain it is cheaper to eat out than go to the grocery store.

I eat out as much as possible, 40 or 50 baht for a meal how can you shop for cheaper than that.

Get yourself a good bowl of Woon Sen Yen Ta Fo or Khao Moo Dang . Good Eaten !!!!

http://www.nanaproducts.com/

One of many examples of Farang food made in Thailand.

[Anthony5]

This thread is about what is the logic behind the fact that prices of imported goods rise, while they actually should decline because the value of the currency in which they are purchased has declined.

OP, you're really confusing basic business decisions with international currency exchange fluctuations when one has nothing to do with the other. Do you think the retail management checks the currency exchange rates of each country where products are imported from on that particular day? If that's the case, American products should be priced differently than French products because the dollar has been strong, correct? How about Chinese products? Fact is--and has already been pointed out--it's simply a function of supply and demand of niche imported products. Retailers can and should charge whatever the market will allow. It seems a lot of foreigners are willing to pay outrageous prices for imported products. Retailers would be stupid to charge less. I shop at the Rim Ping and I'm constantly amazed by the prices of basic imported food stuffs, but clearly, some people are willing to pay. Your choice.

Do you think the retail management checks the currency exchange rates of each country where products are imported from on that particular day?

The Euro, from where Big C for example imports all it's homebrand products. didn't decrease 30% in value yesterday. It happened 6 months ago and has been like that since.

[Anthony5]

I don't know if your observation is correct, I hardly ever go shopping in BigC etc. All I know is that if what you say is correct, you can make a killing by important goods and selling them cheaper than competition. Make sense?

Even if this was the case, for the average Joe it would not be so easy. Cost, red tape, etc etc, would just not be worth it.

If the likes of Giants like Tesco struggle in Thailand, as if any of us individuals can break into that side of the business.

It's actually not difficult to import products in Thailand. I've imported various things from China and Taiwan before and sold it again. Just start doing it, it's far easier than you think. And if this product is in demand and you can sell it say for 20% below the price of retailers like Makro, BiGC etc, then for sure you can make a killing from it.

However I suspect that the products referred to are probably low volume, low demand products. Or am I wrong? What groceries are imported and in high demand?

You imported food items for resale in Thailand?

Why I don't believe you.

For importing food items in Thailand you need a FDA approval which can take up to a year and loads and loads of paperwork.

NEXT.

[seajae]

Australia and Thailand have a free trade agreement which should translate into cheaper products but it doesnt due entirely to the required profit margins here. You also have to allow for thai logic, when hey have less customers they charge more to make up for it, just look how much hotel prices rise when tourism drops and they are empty. Yes prices should drop theoretically but will not because making money is more important, the fact that if they dropped the huge mark ups on western food etc they wouldnt be stuck with so much of it running out of date and having to be tossed doesnt even come into their logic, it is too simplistic for them. Then again since when do thai shops remove out of date anything, have found several items out of date still on shelves, if they can sell it they will, they do not have the strict controls we do back in Australia, wife always checks the use by dates on everything we buy because they will sell them if they can.

[Anthony5]

The guy has a very valid point, since western currencies lose their value, it should be cheaper to buy in thb.

Whats with people trying to make fun of him?

Not making fun of him. I suspect his observation is to a very limited amount of products for which the sales volume is low and not much competition. I see many imported products have come down in price but granted they are not groceries in BigC.

You're right, they are items somewhere in a store in the US, because you aren't even in Thailand.

[Anthony5]

I think you're mistaking BMW,MERCEDES with the likes of Ferrari, Lamborghini.

BMW might be high end, but by no means can a 3 series be regarded as a luxury product. This isn't a ferrari california for gods sake.

People are still price sensitive when it comes to buying BMW,Mercedes, make it couple of 100 thousand baht more expensive, they'll have to settle for another brand.

BMW is a luxury brand....and in a country where many people cannot afford any vehicle whatsoever, a 3 series is most definitely considered a luxury product.

There are more cars in Thailand than there are in my home country.

Mercedes declared many years ago Thailand as their second best market after Germany.

[Anthony5]

The OP wrote, "we all know that the cost of living in Thailand has gone up a lot." Nonsense. Rate of inflation is 2%.

I moved all my cash to Thailand when the dollar peaked. I know a lot of Americans who did the same thing. A lot of retired Americans here because they lived here in the 1960's as young men and have now retired.

The important budget items are lodging, utilities and transportation. For me those things have stayed the same for the past 5 years.

I buy at Lotus Diet Pepsi and it's been 25 baht big bottle for as long as I can remember. I also buy Gillette razor and blade 22 baht for as long as I can remember. My medication has gone down in price (patents expired). I would dispute the OP contention about 30% increase in food prices for Western items.

My Honda Click uses so little petrol that it might as well be electric, the amount is so small per month I can't even tell you what it is. My doctor told me not to eat cheese so I don't know how much that costs same with beer and whiskey.

I locked in lodging prices years ago by purchasing. Cooking gas is one bottle of gas every 6 months or so. My whole house AC costs around 1200 baht per month. Vegetables free and rice free from the family garden and family rice fields. I'm drying herbs right now as I type. I buy olive oil and coconut oil but not too much. I bake my own bread and make my own sausage. It does not take much thought or skill to live really cheap in Thailand.

I guess I could buy expensive canned tomato sauce from Italy but last week I paid 12 baht for a big bag of fresh plum tomatoes and boiled them down with my three different kinds of dried basil fresh onions and garlic and made my own sauce.

I'm retired and have the time to make tomato sauce and sausage; maybe that's the difference.

Below is the stock exchange from Thailand

Is that you ILIKETHAITOO?

[Anthony5]

Many American retirees live in Thailand. They are paid in USD, the world's reserve currency, very strong right now. In addition, as I said, they are wealthy due to the stock market run up. They have no problem with the prices at Big C and elsewhere.

First of all the topic is not about how many Americans live in Thailand or how wealthy they are, I'm sure the 46 million Americans on food stamps are not included in that wealth.

Secondly there are much more other nationalities, who's currency has got weaker, living in Thailand all together than there are Americans, so why would Thai companies have their price policy directed at a minority group of people.

You will know that UK is the most represented in Thailand, with Germans next and Australians third.

Thirdly, if it goes so well with the sale of their imported products, then explain to me why the amount of goods nearing expiration date, and be sold at 50% discount, has been at least six folded over the past months.

Wow! How did you figure the 6X Increase? You keep track of all the stores in Thailand? I would like to see your data so I know where to shop. Thanks!

If you had bothered to read the OP, before putting your foot in mouth, you would have known that in this case I was talking about Big C extra in Pattaya.