Rich American, Poor American

[Mike S]

Actually, the cornflakes comparison of costs is a variation of The Economist magazine's Big Mac Index. That has been in use since 1986 to ... "provide a test of the extent to which market exchange rates result in goods costing the same in different countries. It 'seeks to make exchange-rate theory a bit more digestible'".

Interesting comparing cornflakes in the US to cornflakes in the PI ..... do you suppose that the reason cornflakes in the PI cost more is maybe because the same cornflakes are shipped overseas to the PI ...... comparing a product manufactured in one country which is not in another is not in my opinion a logical comparison ..... compare items like potatoes .... tomatoes .... squash etc. that can be produced in both countries and then compare prices ....... now you are getting somewhere ....... all kinds of things enter into the cost of producing products in different countries ...... as well as where you buy them from ...... farmers market or department store I can buy cornflakes at Big Lots in the US dirt cheap simply because they are almost out dated or I buy 10 cases of them ...... but enough on cornflakes ....Bob ..... I see your point ..... about the wet market and yes I agree I should have to pay more than the Filipino making 200p a day and feeding his 6 kids ...... no problem with that ...... but on the other hand I am not going to give the vendor an extra 50p ...... because as was brought up before if I am already paying 100p for a 75p item and tip 50p more ....... than the next foreigner that buys from that vendor will be asked to pay 150p for the same item ...... just my thought ...... As to wet market prices people and companies from all over the area buy from them but I don't think large chain stores do they have their own suppliers .... I do know that many restaurants and carenderias and people buy from the wet markets like Carbon but not so food chains ...... in areas like Canla-on and Baguio where a lot of fresh veggies are grown the prices to their markets are dirt cheap and so like everywhere else on the planet the price savings are passed down to the buyer ...... the growers will sell to chains stores as well as wet markets .....

[ekimswish]

I don't have too much experience overpaying for things, other than taxis. I definitely have experience being scammed. I think you just have to live, learn, and adapt. Most of the things I "overpay" for have nothing to do with scamming and everything to do with limited supply. But if I see something that's rare out here that I absolutely miss from back home, I have to ask myself how bad I really want it.

[i am bob]

Actually, the cornflakes comparison of costs is a variation of The Economist magazine's Big Mac Index. That has been in use since 1986 to ... "provide a test of the extent to which market exchange rates result in goods costing the same in different countries. It 'seeks to make exchange-rate theory a bit more digestible'".

Interesting comparing cornflakes in the US to cornflakes in the PI ..... do you suppose that the reason cornflakes in the PI cost more is maybe because the same cornflakes are shipped overseas to the PI ...... comparing a product manufactured in one country which is not in another is not in my opinion a logical comparison ..... compare items like potatoes .... tomatoes .... squash etc. that can be produced in both countries and then compare prices ....... now you are getting somewhere ....... all kinds of things enter into the cost of producing products in different countries ...... as well as where you buy them from ...... farmers market or department store I can buy cornflakes at Big Lots in the US dirt cheap simply because they are almost out dated or I buy 10 cases of them ...... but enough on cornflakes ....Bob ..... I see your point ..... about the wet market and yes I agree I should have to pay more than the Filipino making 200p a day and feeding his 6 kids ...... no problem with that ...... but on the other hand I am not going to give the vendor an extra 50p ...... because as was brought up before if I am already paying 100p for a 75p item and tip 50p more ....... than the next foreigner that buys from that vendor will be asked to pay 150p for the same item ...... just my thought ...... As to wet market prices people and companies from all over the area buy from them but I don't think large chain stores do they have their own suppliers .... I do know that many restaurants and carenderias and people buy from the wet markets like Carbon but not so food chains ...... in areas like Canla-on and Baguio where a lot of fresh veggies are grown the prices to their markets are dirt cheap and so like everywhere else on the planet the price savings are passed down to the buyer ...... the growers will sell to chains stores as well as wet markets .....

I"m still waiting to find out if the brand of corn flakes makes a difference... :cheersty: The corn flake analogy was started quite a few years ago but it failed to take into consideration that the whole world doesn't eat them. Good idea but slightly flawed. The MickeyD's version was thought of in the 80s (as the most knowledgeable member above mentioned) but still has a few flaws for all models. Still was a much better fit than corn flakes worldwide. One of my hobbies is studying this crop... (did I spell that wrong? :999: )Hmmm... Your second point... Looking at it from our side, I totally agree! Before I was trying to help show what it looked from the other side of the table. But for us as purchasers? That is where we have to try out our barbering skills to see if we can get it down there or leave less (if any) tip once we complete the purchase. As for the source for each type of vendor, that will vary from area to area. I know that many chains buy a lot from the big names (Dole, etc) and so do some smaller vendors from that locale for the wet market. In other areas it may be smaller farms supplying the goods. And if the location of the market is close to where they are grown, this will bring the prices down too. If they aren't close, the supplier could be anybody! Too many variables for every scenario!!!But yeah, we are really talking the same thing - just trying to look at both sides and why it is the way it is!

[Jollygoodfellow]

That is where we have to try out our barbering skills to see if we can get it down there or leave less (if any) tip once we complete the purchase.

Yep those type of skills are essential in the Philippines and less is better as in get what you pay for,nothing better than a shave for the price of a haircut.

[JJReyes]

Rich American, Poor American. In the Philippines, they cannot distinguish one from the other. Even poor Americans look rich compared to their standard of living. The exception mentioned earlier are the few who work and earn wages equivalent to ordinary Filipinos. They are viewed as persons who either temporarily or permanently have fallen out of grace. The United States has a more scientific approach by publishing the annual federal poverty guidelines. For 2012, in the 48 contiguous states, one person earning below $11,170 is considered at the poverty level. If there are four in the family, the amount is $23,050. For Alaska, the poverty level is $13,970 and for Hawaii it is $12,860 for one person. Both states are considered as more expensive places to live. Now comes the interesting part. Who do you think pays higher prices for commodities? Large manufacturers spent years and millions studying consumer psychology and their buying habits. Let's use laundry powder as an example. There are consumers who will insist on using Tide. They have been led to believe that the product is superior through advertising. The price is unimportant to them. Others want Tide, but only when it is on sale. From time to time, Tide is included in the supermarket advertised specials for the week. Some women want the advertised discount and a coupon for further reductions. My wife, as a former advertising executive, won't buy Tide because she knows how the game is played. She insists on Kirkland detergent sold at Costco by the bucket. Guess who is the manufacturer? Tide. They know that a segment of their consumer demographics won't buy brand names. The same product is then sold through what are known as private brands. In this case, Kirkland is the Costco brand. Costco is a retail outlet. They don't manufacturer. Tide also sells bulk laundry detergent with no brand for industrial use. They include laundry plants who wash sheets and towels for hotels or hospital linen. Why do poor Americans pay the highest price? It is their location. They reside in communities where the convenience store is independently owned. The chain supermarkets won't go there because the volume is low and the shrinkage is high (pilfering). They have higher insurance premiums because of potential lawsuits if an employee or customer is shot during a robbery. The Korean, Indian, Chinese merchants who own the convenience stores charge higher prices because they absorb greater risks. The packaging is smaller, whether the brand name is Tide or a private label, It appears cheaper, even with the premium add by the merchant, because of size. Some packaging is for just one load. Calculate the price on a per ounce and the poor American living in poverty is paying twice or more than the rich American living in the suburbs. The manufacturers have their bean counters and sophisticated computer programs making continuous pricing adjustment so that at the end of each quarter they make a profit. If they don't, their shareholders will be upset and take their money elsewhere. There goes the year end bonuses and salary increases.

Edited February 17, 2012 by JJR

[KanoJoe]

Once you accept the two prices system as a cultural reality, your living in the Philippines will be less frustrating and less irritating.

I'm not sure that being quoted one price, then being charged 10 times that amount when the due-bill came qualifies as "Largesse".

[JJReyes]

I'm not sure that being quoted one price, then being charged 10 times that amount when the due-bill came qualifies as "Largesse".

Being quoted a price and accepting it are two different things. As someone previously suggested, just walk away. I have never personally experienced someone quoting ten times value. One after service exception might be a doctor or hospital who won't give you an estimated price and thereafter, presents you with a huge bill. By the way, even in the United States, the medical bill is negotiable. My wife and I have medical insurance, but it does not include prescription medication. Hawaii has a law requiring pharmacists to offer generic over brand name, unless the doctor insists on brand name. When my doctor insisted on brand name, I fired her and got a replacement. The new doctor knows what happened. My new prescription for a 90 days supply at Walmart was $10! Medicine is a business. In a down economy, doctors, dentists and hospitals are hurting for business because consumers keep delaying their medical visits.

[KanoJoe]

I'm not sure that being quoted one price, then being charged 10 times that amount when the due-bill came qualifies as "Largesse".

Being quoted a price and accepting it are two different things. As someone previously suggested, just walk away. I have never personally experienced someone quoting ten times value. One after service exception might be a doctor or hospital who won't give you an estimated price and thereafter, presents you with a huge bill. By the way, even in the United States, the medical bill is negotiable.My wife and I have medical insurance, but it does not include prescription medication. Hawaii has a law requiring pharmacists to offer generic over brand name, unless the doctor insists on brand name. When my doctor insisted on brand name, I fired her and got a replacement. The new doctor knows what happened. My new prescription for a 90 days supply at Walmart was $10! Medicine is a business. In a down economy, doctors, dentists and hospitals are hurting for business because consumers keep delaying their medical visits.

My example may be extreme, but in fact happened to me and it was actually 1000 times above the quoted price... I was in Ermita and wanted to do the tourist thing, so I asked a carriage driver on Roxas what the price was for once around the loop... For you 20P was the answer... After the loop I tried to get out of the carriage and was blocked by the driver's son... He then tells me that the price was 20 hundred pesos, or 2000P... I told him that if he did not get out of my way he would be picking himself up off the ground. I gave the driver 200P and told him to call the police as I walked away...

[JJReyes]

My example may be extreme, but in fact happened to me and it was actually 1000 times above the quoted price... I was in Ermita and wanted to do the tourist thing, so I asked a carriage driver on Roxas what the price was for once around the loop... For you 20P was the answer... After the loop I tried to get out of the carriage and was blocked by the driver's son... He then tells me that the price was 20 hundred pesos, or 2000P... I told him that if he did not get out of my way he would be picking himself up off the ground. I gave the driver 200P and told him to call the police as I walked away...

Interesting situation. You did the right thing. Once you gave the driver money and he accepted it, end of story. Edited February 21, 2012 by JJR

[Dave Hounddriver]

Being quoted a price and accepting it are two different things. As someone previously suggested, just walk away.

In a situation that I don't think has been covered, even a 'rich American' usually needs to budget. So on a recent project I sent a man around to all the hardware stores to price out the material. That was in the morning. In the afternoon I went back with him to look at what he had chosen and approve the purchase. In one store, the price he was quoted in the morning was 1,850 pesos and the same item, the same afternoon, was 2020 pesos (after they saw he was working for me). He raised a bit of fuss to explain that he needed the price he had budgeted for and lots of employees got involved, but the lowest price they would give after seeing me was 1975 pesos.My best solution was to go with a store down the street who had quoted 1900 and stuck with it, even after seeing me. But can you see how that can cause budgeting problems?PS. If you think that is peanuts, because you live in a rich country, picture this: The man saved me enough money by price shopping to pay his wages that day. Edited February 21, 2012 by Dave Hounddriver