Tuesday, November 20, 2012

Why some things are more expensive in Singapore - Even MAS got the doubt now

Source: CNA

If you ever wonder, why things in HongKong, or USA or even our neighbouring countries like Malaysia, Thailand are relatively cheaper compared to Singapore then you are not alone. MAS or the big uncles got the doubt as well.
For example, if I see a camcorder from Sony,

Singapore price from Sony, Singapore  is SGD 1,199.00
Amazon price from Amazon, USA is USD 499.00 or SGD 611. What the $$$$? Almost half the price. It is exactly the same box. If we're to compare the price in showroom price in USA, or Sony, Singapore is USD 599.99 (+100 credit) or SGD 732.

Another example is simple Vitamins, some lotions which I found half the price in HK. The list is endless. Why and what is the main reason?

If I look in to what's included in the cost of a item/product? I can think vaguely,
  1. Manufacturing cost
  2. Shipping cost
  3. Taxes
  4. Cost of business (rental, display, employee etc)
  5. Profit margin
So if we see individual categories, I'd think manufacturing cost should be the same across for "similar" quality items. Almost all the items are manufactured in China anyways.

Shipping cost shouldn't be a big difference too as we're pretty close to the manufacturing places ;)

Taxes - Singapore is a low tax nation.

Cost of business - Rent is high but not as high as in HK or NY; Staff pay is damn low here..Interest rates, taxes are pretty low too.

Profit Margin - ???

No comments then..

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