Why are
prices so high? Someone is getting rich, and it’s not the average consumer. But
if you take a look at the incomes of the owners
of the major supermarket chains in this country, that will shed some light on
the matter. They are quite wealthy; in fact, they are some of the wealthiest
people in this country. They control the food prices; the farmers who are
always being blamed for the high price of food do not. Farmers are subsidized in many
countries; it’s a tricky and difficult profession and I don’t begrudge them the
subsidies if this is what helps them to live and as long as the subsidies are
reasonable. I have a problem with the middlemen—that group of people who bring
the consumer goods to us. Again, I don’t mind paying a 15% or 20% markup so
that they can make some profit from importing goods for us to buy. I mind when
the markup is 300% or 600%. There is no reason other than pure profit that
dental floss and aspirin cost the exorbitant prices they do at present. It
reminds me of how middlemen have milked my own profession for years and made
huge profits. The suppliers of medical
research items like antibodies, buffers and other reagents have charged sales tax
on items that should have been tax-free because they were being used for
research. They also marked up prices for many of these items by 100% or more. So you had an insane markup plus 25% sales tax. Fair? No. They were finally forced to implement the tax-free policy and made it as difficult
as possible to implement. It always surprised me that hospitals and research institutions were not more aggressive and adamant about having this tax-free policy enforced many years ago already, considering the financial difficulties many find themselves in at present.
Sunday, August 26, 2012
Buying it on Amazon (or how I avoid paying high Norwegian prices)
I thought
I’d put in my two cents concerning the discussion about how expensive it is to
be a tourist in Norway. There have been a number of recent articles about exactly
this topic—how expensive it is to travel in Scandinavia, and especially in
Norway—and some of them are pretty funny, at least to me, since I recognize my
own reactions (and a bit of shock) to much of what is written in them. Try this
recent article, for example http://frugaltraveler.blogs.nytimes.com/2012/08/24/scandinavia-on-125-a-day/?hpw). Tourists are not the only ones
who are shocked at the high cost of living here; I’ve lived here for twenty-two
years and I’m still often taken aback at how much things cost. It’s not so much
housing prices (which are comparable to Manhattan and other large cities around
the world), but it’s other things, like cars, eating out, gasoline, groceries
and other necessities. However, a number of low-price supermarkets have sprung
up in Oslo in recent years; here you can find some bargains and that’s always a
good thing. Prices in Norway for different items can be shocking; you need to
take a deep breath at times and stop converting the prices to American dollars
if you’re an American expat. Because if you continue to convert, you will
realize how much money you are really paying just to live, and it’s not to
live extravagantly. For example, if you convert, you will find that you are
paying twenty dollars for one, I repeat,
one dental floss dispenser at local pharmacies. It doesn’t matter where you
are—in the rich or less rich city areas—prices are the same. And the dental
floss is not manufactured in Norway, it is imported. It is good old Johnson
& Johnson dental floss that you can find on Amazon for a fraction of the Norwegian
price. In fact, a package of six
dental floss dispensers (100 yards each, more or less the same size as what is
available for sale here), costs 17.82 dollars on Amazon (http://www.amazon.com/Reach-Dentotape-Designed-spaced-Unflavored/dp/B003XDVERE/ref=pd_sim_hpc_1). In other words, you’re being
suckered if you pay that price for one floss dispenser in this country. So
guess who recently ordered dental floss from Amazon. Even if I pay
international shipping costs, which are not much, the total price for six
dispensers is still much cheaper than what I would pay for one here in Oslo.
And so it goes. Take aspirin. Genuine
Bayer aspirin (325mg 200 coated tablets)
on Amazon costs 9.47 dollars (http://www.amazon.com/Genuine-Bayer-Aspirin-Tablets-Coated/dp/B001LFG0OI/ref=pd_sim_hpc_1); at an online Norwegian pharmacy, I can get
a package of 20 aspirin tablets (440
mg) for 7 dollars. It borders on the ridiculous. Of course, healthcare
costs are ‘lower’ in this country than in the USA; but wage earners in Norway
pay for universal healthcare through their taxes (at present, the sales tax is
25%), as well as taxes on gasoline, liquor, and cigarettes. I don’t have a
problem with paying taxes to fund universal healthcare (something Americans
should think more about so that healthcare became more accessible to all), but
just so the point is made—healthcare is not free
in this country by any stretch of the imagination. Nothing in this world comes
for free. But it would be nice not to have to pay through the nose for some
basic items like dental floss and aspirin. So whenever I am in the USA, I stock
up on such things; it’s worth it. Norwegians pay their taxes willingly, but
never believe for one second that they don’t want a bargain if they can get
one. Those Norwegians who live on the east side of the country save money by
shopping for groceries and liquor in Sweden, where prices are much cheaper. And
when they travel, they stock up on duty-free items (e.g. liquor and tobacco
products) on their return. And duty-free prices are still expensive, just
considerably less expensive than the usual prices.
Labels:
Amazon,
aspirin,
dental floss,
high cost of living,
high prices,
importers,
markup,
middlemen,
Norway,
Oslo,
reflections,
sales tax,
tourists
| Reactions: |
Subscribe to:
Post Comments (Atom)
I agree with your conclusion (as a foreigner living in Oslo). Recently I went to Berlin and Stockholm and found the food prices there are much more affordable. And in Oslo if you go to those supermarkets opened by Islamic people (the famous vegetable and fruit market in Grønland for example), the food price is generally much more affordable as well. But for most of the time people don't bother and just shop in the nearest supermarkets.
ReplyDeleteFor electronic devices, which you couldn't buy from Amazon (they won't ship those to Norway), I found prisjakt.no quite handy. Sometimes you can even find stuff cheaper than the one in US or Germany! I bought most of my "hvitevarer" from Internet stores and I'm pretty happy with their services (Bring messed up things a few times though).
Glad you commented! Not all food items are expensive; vegetables and fruit can be bought at reasonable prices in supermarkets, but you get better prices and choices at the vegetable and fruit markets as you say. The supermarkets are more convenient though because there are so many of them! Amazon won't ship electronic items to Norway most likely due to the EU regulations. I have bought some electronic items online at Pixmania for decent prices. I'll have to check out prisjakt.no. It's strange that there is no consistency in terms of what is expensive and what is not. For example, you can get digital cameras for good prices in stores that sell electronic equipment, but camera accessories cost a fortune. Movies and music are not expensive, but books are. Cell phones and computers are not too pricey. I don't understand why some items are so ridiculously overpriced, like the ones I talk about--dental floss and aspirin. Cosmetics also cost a lot of money here. You find your way around eventually, and after so many years here, I know where to go to save money. I just think that it's time there was more consistent pricing across the board.
ReplyDeleteFor books luckily we can still buy from Amazon (some old books I wanted can only be purchased through Amazon anyway) without paying much tax. Since we have migrated to Kindle mostly, we only keep minimum printed books at home so shipping cost is not a big issue. For me the markets in Oslo just have too limited choices when I want to buy clothes or shoes. Kitchen stuff is OK but not as many as the ones in Germany. Oh of course the cost usually comes from the labor: hiring a plumber/electrician definitely costs a lot; even simple delivery in the city costs much more than other countries.
ReplyDeleteGermany has reasonable prices; I saw that this summer when we spent some time in Berlin. So we stocked up on some food items and bought some wine, etc. I have been ordering books via Amazon for many years, and that has worked very well. Amazon is an amazing company in so many ways--reliable in terms of shipping and reasonably-priced items. I agree, the labor costs drive the prices up. I'm willing to accept somewhat higher prices if it means that all people can make a decent living, but I think that here, just like anywhere else where prices are exorbitantly high, that the profit motive is the major reason behind the high prices. I may be slightly cynical, but that's how I see it these days.
ReplyDeleteI order books, which are duty free, all the time from Amazon, but have avoided other things because of the import duties/VAT and the cost that some shippers charge for clearing customs. My understanding is that up to 200 NOK of taxable goods can be sent by a company (NOK 1000 by a private person) before you have to deal with customs.
ReplyDeleteSo, I'm curious if you've gone over 200 NOK on taxable goods ordered from amazon, and if so, did you have any problems with customs?
BTW, I grew up in NY.
Nice to meet a fellow New Yorker and expat! Yes, I have gone over the 200 kr limit, as recently as this summer when I ordered a TV series DVD collection that I really wanted from Amazon. I was prepared for the customs charges that accompanied its arrival. Otherwise I am careful to keep all orders under that limit. It has worked so far, even with items like dental floss, aspirin and a few cosmetics. As far as receiving overseas packages from private persons, it mostly works, except for one major fiasco at Christmastime about eight years ago when the post office outsourced some of its package scanning work to NSB of all organizations, where I ended up paying import duties on Christmas gifts from friends. I was not very happy, to put it mildly. We no longer do things that way, suffice it to say, and have settled on, again, Amazon as the solution--gift cards and the like. And of course if I really want or need something from CVS or Kmart, my friends buy it for me and ship it as a gift. That works well too.
ReplyDelete