List Price or Higher - Why is everything so expensive?

[Briggsy]

Suppress a free market.

 

1. Limit the number of suppliers to as low a number as possible, preferably 1.

 

2. If more than 1 supplier, create a price cartel.

 

3. If this fails, block distribution e.g. by threatening 7-11, Tesco Lotus, etc. "If you stock this, we will pull our products."

 

4. Lobby the government and its myriad of agencies to make life impossible for your rivals.

 

5. Block importation of foreign competition through legislation or taxation.

 

6. Use illegal means.

 

7. Ensure all consumer watchdogs are completely neutered.

 

8. Ban all negative publicity through harsh defamation laws.

 

Result - The laws of a free market cease to work. Products are lower quality and higher priced than in other jurisdictions.

 

 

 

 

[tomwct]

Price fixing is quite common in Thailand. That's why the Thai Market is strictly controlled by the elites in Thailand. They

could not compete with a Walmart or Home Depot in the states. If you want a Samsung TV, you can look at Big C, Tesco, Makro,

or a local dealer and the TV"s will all be the same price. This is illegal in most countries, but part of Thai Culture here.

[TonyClifton]

3 minutes ago, tomwct said:

Price fixing is quite common in Thailand. That's why the Thai Market is strictly controlled by the elites in Thailand. They

could not compete with a Walmart or Home Depot in the states. If you want a Samsung TV, you can look at Big C, Tesco, Makro,

or a local dealer and the TV"s will all be the same price. This is illegal in most countries, but part of Thai Culture here.

 

But if one retailer brick and mortar or online offered a sale, they would sell all.  

 

[bazza73]

It depends on what you are buying, and if it's made here.

 

I've found a lot of goods and services here that are significantly cheaper than their counterparts in Australia.

[TonyClifton]

Example?

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[thaibook]

Many years ago when it was a semi-closed country the Sultan of Oman wished to find out if goods in the Kingdom were more expensive than in the neighbouring countries, as there were many stories that they were, and if so why?  I conducted a thorought exonomic study collecting prices in neighbouring countries and several locations in Oman, built up cost structures, analysed FOB and CIF prices, considered operating costs, taxes, relative cost of living etc.  We found prices were higher and the primary reason was higher profit margins.  The report was delivered to the Sultan's Council and was quietly buried after a short discussion.  

 

As a previous contributor, Briggsy, has said, if you have a market geared to protecting the interests of a specific group then without political will or the ability to publicise/shame the odds of a change are rather long.   

[thaibook]

By the way, if anybody would care to fund it, I am happy to undertake a comparative price/cost analysis of Thailand at a discounted price.

[ukrules]

24 minutes ago, thaibook said:

Many years ago when it was a semi-closed country the Sultan of Oman wished to find out if goods in the Kingdom were more expensive than in the neighbouring countries, as there were many stories that they were, and if so why?  I conducted a thorought exonomic study collecting prices in neighbouring countries and several locations in Oman, built up cost structures, analysed FOB and CIF prices, considered operating costs, taxes, relative cost of living etc.  We found prices were higher and the primary reason was higher profit margins.  The report was delivered to the Sultan's Council and was quietly buried after a short discussion.  

 

As a previous contributor, Briggsy, has said, if you have a market geared to protecting the interests of a specific group then without political will or the ability to publicise/shame the odds of a change are rather long.   

 

Yes, prices are higher in Thailand because they make more profit per item.

[Don Mega]

Better to buy cheaper offshore and be at the mercy of Customs when importing than paying local prices.

 

Sometimes you win but sometimes you lose............... roll the dice.

[TonyClifton]

Better to buy cheaper offshore and be at the mercy of Customs when importing than paying local prices.
 
Sometimes you win but sometimes you lose............... roll the dice.

I thought the same. I can Amazon and have friends send postal.

Sent from my Nexus 6 using Thailand Forum - Thaivisa mobile app

[mtls2005]

Most places run on a pretty small margin, and COGS are the nearly the same for everyone at each stage of the supply chain here, regardless of volume.

 

Stuff is generally more expensive here if it's imported due to duty, import tax, excise, etc, and manufacturers like H-K try to manage MSRPs through universal reseller discounts and limited end-user discounts.

 

A friend bought a JBL Flip 4 knock off in the market over the border at Mae Sai for 600 baht. Working fine. A real one is ~ 4,500 - 5,000 THB here, while in the U.S. it is $100 (~ 3,500 THB).

[bazza73]

1 hour ago, TonyClifton said:

Example?

Sent from my Nexus 6 using Thailand Forum - Thaivisa mobile app
 

Girlfriends, toilets, restaurant meals, internet services, whisky, motor scooters, air conditioners, rent, houses, car registration.... is that enough?

[TonyClifton]

53 minutes ago, bazza73 said:

Girlfriends, toilets, restaurant meals, internet services, whisky, motor scooters, air conditioners, rent, houses, car registration.... is that enough?

 

Sure, if you don't need furniture, music, computers, kitchen appliances to make the food, Canadian whiskey, any whiskey other than Mekong, Black Cock, Red Cock or some other rotgut made in the backyard.  

 

If you wish to live in a thatch house with no walls but stilt flooring, and spend your days with hookers and the like, then I guess you're fine.  Just because I live in a Third World hole, doesn't mean I have to live with it.  

 

I keep asking the question but don't get an answer, which is: Do the Thais know they are being gouged?

[sirineou]

Scale of economies. Economis 101

Importers who import large quantities get a better price and can afford to sell for less.

Retailers who sell more can afford to sell for a smaller profit margin. They make their money on volume. 

 

[robblok]

Lazada had a seller selling the identical item at 12,200b.  It's not much, but 700b is a good meal for my son and me.  However, although Lazada accepted my USA credit card, and put a hold on the amount on the card, they canceled my order the next day.  
 
The reason given was that they don't accept credit cards outside of Thailand.  
 
Buying with my credit card affords me protection as well as increasing the warranty period.
 
It was not an option.

Strange as my Dutch creditcard was accepted yesterday by lazada.

[Skeptic7]

On 5/6/2017 at 5:31 AM, Stradavarius37 said:

Use lazada

Sent from my SM-N920C using Thailand Forum - Thaivisa mobile app
 

While agreed that Lazada is usually the way to go and we use it often, it still pays to price shop. Bought an Electrolux Coffee Maker from Lazada for ß1199, then found the exact same model at Tesco/Lotus for ß999, which is the everyday price.

[Skeptic7]

On 5/6/2017 at 6:34 AM, TonyClifton said:

Why was I lucky?  They put a hold on the card.  Then they canceled.  So they can take a USA credit card but chose not to.  It showed on my online card information as a hold.  I called Chase and they said the purchase was approved; all Lazada had to do was accept the payment.  

 

Again, why was I lucky?  I'm protected by my credit card on all purchases.

Lazada used to accept my USA MasterCard, but now it is refused every time...even for minor purchases. Nowadays I have to use my Bangkok Bank Debit Card or COD. Prefer to use my CC, as it pays 1.5% cash back on all purchases, but no longer an option. 

[Skeptic7]

Don't know the answer to the OP's original question, but it didn't used to be this way. Up until about 7 years ago, used to buy nearly everything here and take them back to The States. Nowadays when I'm in The States...stock up on items there and bring them back here!

 

Very few bargains in Tourist Trap Thailand anymore. Even on the street or MBK or Pantip...seems everything is a Hi-ball right from the start and not much wiggle room. 

[TonyClifton]

My original question still goes unanswered.

 

Do the Thais know that they are being gouged?

 

 

 

 

 

 

[Salerno]

Ask them.

[TonyClifton]

32 minutes ago, Skeptic7 said:

Don't know the answer to the OP's original question, but it didn't used to be this way. Up until about 7 years ago, used to buy nearly everything here and take them back to The States. Nowadays when I'm in The States...stock up on items there and bring them back here!

 

Very few bargains in Tourist Trap Thailand anymore. Even on the street or MBK or Pantip...seems everything is a Hi-ball right from the start and not much wiggle room. 

 

When I first came here in 2001 the exchange was 45 baht to the Dollar.  When I left in 2008 it was 29.  Now at 34 the baht is better than 29 but the goods sold here are all sold at MSP or list price.  The <deleted> have the balls to smile at me and tell me it's a sale price.  The same smile was used by a Taxi Driver who wanted 400b off the meter for a 35 baht drive.

 

 

[ThaiWai]

I use Lazada when I want it quick (new phones, headphones that just broke and I need or I can't workout).  Personally I love the COD option.  I think it puts a little snap in their step. I have returned products to Lazada and found it effortless except for a trip to the post office.  

If I can wait or it's a product I specifically need from China (GF salon stock mostly), I go to Aliexpress almost daily.  I choose free shipping but it's by no means fast.  Today I was on the beach and saw people throwing a frisbee around.  My dog looked at me and said "I WANT THAT".  I opened the Ali app and it (frisbee specifically designed for dog's) is already on the way.  3-6 weeks from now the GF will get the delivery at the shop and bring it home.  Slow but cheap.  Even for brand name dog toys (Chuck-It) for example that cost 2-3x as much locally.   To avoid those markups, I am willing to wait.  2 months before I got my dog, I ordered everything I knew I would need so was not concerned about shipping speed.

On 1 shipment out of maybe 40 the Thai Post asks me for 7 baht to cover something, who knows what.  No problem.  Other than that I have only had and Ali package stopped by customs twice.  Once was $20 worth of GoPro accessories that the customs officer could not believe was only $20 (until I sent him a screen shot of the Ali item and value).  Once was 3 bottles of shampoo which they actually wanted duty on and got.  Considering the amount of orders the GF and I put in we consider those events a total non-issue but now I just order single bottles as there is no discount for multiples and customs ignores them.  Again over many dozens of orders I have had a few disputes, 5 I think, and Aliexpress has always sided in my favor granting me full refunds for defective or damaged goods.  I always submit video of photo proof of my complaint and even while some vendors put up a short fight, Ali has always backed me.  I have only had 1 item no-show (a camelback) and the seller got me a new one in a week and included a water battle cooler as a gift for my inconvenience.  1 other time I received some small broken bottles of hair product for which the seller requested photos and more photos and then more photos before acknowledging faulty packaging.  I sent her photos of my past $300 worth of orders to her and told her to lose my email address.  10 minutes later I received the credit and a profound apology.   

Last is Ebay.  Not to say I don't need them from time to time. (pool test strips, Playstation internal parts).

[Skeptic7]

1 hour ago, TonyClifton said:

When I first came here in 2001 the exchange was 45 baht to the Dollar.  When I left in 2008 it was 29.  Now at 34 the baht is better than 29 but the goods sold here are all sold at MSP or list price.  The <deleted> have the balls to smile at me and tell me it's a sale price.  The same smile was used by a Taxi Driver who wanted 400b off the meter for a 35 baht drive.

 

 

I hear ya loud and clear. It's a Tourist Trap now and they know it...and they know the majority of idiot masses will pay it. Been here almost 25 years and it has changed...and (mostly) not for the better. Taxis are actually better now. I remember when there were NO metered taxis...NONE! Nowadays...no meter, no go. Next! Always another coming along shortly, willing to use the meter.

[JSixpack]

Valid whinges here. The lack of discounting is a disappointment.

 

My suggestion FWIW is to try when possible to choose things to buy here that ARE sold for about the same price or less than in the West. (Sales and rebates don't count.) That makes them well-priced here and relative bargains. When shopping for a pair of quality higher end speakers, for example, I found some here for the same price as I'd have to pay on Amazon. That way I don't feel ripped off and am still happy.

 

Discounts are misleading, you know. OEMs will set the MSRP higher than the real worth for what is ultimately a marketing purpose. When a product is never discounted by the Western discounters, then it's more likely to be at its fair price; and maybe that's all you'll have to pay in Thailand too.

[bazza73]

3 hours ago, TonyClifton said:

Sure, if you don't need furniture, music, computers, kitchen appliances to make the food, Canadian whiskey, any whiskey other than Mekong, Black Cock, Red Cock or some other rotgut made in the backyard.  

 

If you wish to live in a thatch house with no walls but stilt flooring, and spend your days with hookers and the like, then I guess you're fine.  Just because I live in a Third World hole, doesn't mean I have to live with it.  

 

I keep asking the question but don't get an answer, which is: Do the Thais know they are being gouged?

I live very well here, thank you. A litre of imported Scotch whisky here costs less than a 700 ml bottle in Australia by a good margin.

I rent a condo in Chiang Mai with a swimming pool. Fully furnished. Rental cost for a month is the same as I'd be paying for a week in Australia.Unfurnished.No pool.

You really shouldn't make assumptions about other posters lifestyles. I daresay I live better than you do.

All you guys who regard Thailand as a Third World hole ( your words ) make me wonder - if you are so miserable here, why don't you piss off somewhere else? Thailand won't miss you.

 

[KittenKong]

I found Lazada very convenient when I bought a small electronic device (200B) for my car. The free delivery and cash on delivery option were both very attractive as the item would have attracted a delivery charge in the west making it much more expensive. So I would continue to use them for cheap items or for something I need urgently.

 

However for any non-urgent item over about 1000B (good headphones, dash-cams, Chrome-casts, hifi, computer parts) etc etc, I much prefer to buy online in the west and bring them back here with me in my luggage on my yearly trip. That way the cost is about 30% less, or potentially much less for sale items. Most of the things I own only cost me half what they would have cost me here, and many of them simply aren't available here.

 

There is also the warranty to consider. UK warranties apply to everything sold there and are at least one year, putting the onus on the vendor. In Thailand you are lucky to get one week, and getting it honoured is often like getting blood out of a stone.

[KittenKong]

10 hours ago, bazza73 said:

A litre of imported Scotch whisky here costs less than a 700 ml bottle in Australia by a good margin.

 

Then Australia is indeed a very expensive place. I always find all types of alcohol to be expensive here (with the exception of that white paint stripper stuff), and imported spirits, wines and beers seem to be particularly so. Where I lived in Europe such things were less than half the price and even in a UK supermarket they are mostly cheaper than they are in a supermarket here. Admittedly there are also some European places (Scandinavia) where alcohol prices are astronomically high.

Thankfully I'm not much of a drinker but if I was I might not be living in Thailand.

[mtls2005]

13 hours ago, TonyClifton said:

My original question still goes unanswered.

 

Do the Thais know that they are being gouged?

 

 

 

 

 

 

 

Some do, some don't.

 

A lot of Thais do a brisk business importing items from outside of Thailand. TG cabin staff often triple their monthly salary with side-businesses.

 

Some items are hard to get here, others are much more expensive here.

 

I return to the U.S. often and bring back a fair amount of booty; PC kit, phones, tablets, etc. mostly for personal use.

 

 

[bazza73]

16 hours ago, TonyClifton said:

 

I keep asking the question but don't get an answer, which is: Do the Thais know they are being gouged?

Probably the better educated and well-heeled Thais do. The ones living in the boondocks probably don't know, don't care and would not be buying high-end items anyway. Except for smartphones.

Thailand has erected fairly steep tariff/duty walls on most imported items. A Mercedes here will cost double the price in Germany, purely because there's a 100% duty levied. Thailand also has a thriving manufacturing industry.

Compare Thai trade policy with the free trade policies of Australia and the USA. Whole sectors of manufacturing industry in both countries have been driven to extinction.

While it may be fashionable to put down Thai intelligence, the above example makes me wonder who the dumb ones really are.

[metisdead]

As the topic has deteriorated into a Thai bashing session, this topic is now closed.