Ok, maybe this is a forced photo -- but it is the first time the two of them shared a cart together. Tonight we went to Costco in preparation for our move in under 2 months. Why you ask? Let's see, currently $1 USD buys you 1.68 BRL (Brazilian Reals). We snapped this pic at a grocery store in Brazil of a sippy cup, take a look at the price:
Applying the conversion rate: (34.87 BRL) * ($1 / 1.68 BRL) = $20.76!! Think about what $21 gets you here in the States.
The reason, if you were wondering, is mainly due to the import tariffs that exist in Brazil -- and applies to most of the products sold down there as well. Electronics - fuggedaboutit! They're triple in price.
So what about the goods made in Brazil, they must be cheaper right? In some cases yes, however for the majority we came across they just undercut the import tariff price by a few percent. Example:
An imported product costs $100 after tariffs. The same type product is also made in Brazil and should only cost $60 after typical retail markup -- however, the Brazilian company puts this product on the shelves for $90 -- and why not!? They can rake in a much larger profit margin and still be $10 cheaper than the import!
Problem is, not many people can afford these items -- so who's gaining here? I could go on forever about this: Tariffs never work, imports are just as important as exports, etc... but who wants to hear a discussion on economics. This post is supposed to be about a Costco trip and how it relates to our move to Brazil.
Fact is, we only heard about the tariffs (from just about everyone) and saw it first hand in 3 out of 3 shopping centers. I guess what I'm getting at here is, we still have to find our way around. I'm in no position to be talking in absolutes on this topic yet either, but get the feeling that finding deals down in Brazil will prove to be quite the challenge.
Anyway, with no further explanation, we went to Costco today in preparation for our move.
No comments:
Post a Comment