Why should prices be so high?

One of the reasons Thailand is a good alternative to retire to, is the cost of living. But recently prices seem to be rising, much more at Farang involved business. These prices are sometimes higher than US prices even though product and labor costs are for the most part much lower when compared to the US.

I recently looked at an on line menu of one of the cafes that are publishing their business heavily on this forum. I was surprised to see a hamburger was priced at 180 baht. Converting that price to dollars, makes that burger $4.50.

Some Thai chain restaurants like S&P sell a braised chicken leg with rice for 85 baht or $2.10, American fried rice which includes a fried egg, sausage, and fried chicken drum stick also for $2.10. S&P that I have visited have air con, well decorated, and it seems in buildings that probably charge a premium to rent.

The above may not be a fair comparison, but in my view, some of the gay places are charging a premium, just because they are gay.

There are some notably exceptions, White Night is an example where you pay 220 baht ($5.50) for as much as you wish to eat including coffee or Tea and dessert. A popular host bar in the area also offers hamburger and fries for about 90 baht.

Meals at some of the other places in Boys Town area, like New Orleans, have increased prices for some items by over 70% in the last few months. I am interested in other opinions.

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[bucknaway]

I feel the same. When I first came I felt things were cheap here until I truly compared the cost to what I pay at home and find that things associated with labor are cheap but goods of any value are not cheap at all.

Now when I come to Thailand I do not come to shop. I spend very little on goods. And the bar prices are higher than they are here in Delaware and Washington DC.

Went to the quite largew car hire place i have used before close to Jomtien, and was told: "No, not one day hire, only three days now during high season" WOn't be going back there again, and found a small place over the road for 1 day.

[Hmmm]

Is it just the gay places that can be expensive, or is it anywhere that sells 'farang' food ?

Other than on my first trip years ago, I've never eaten much farang food in Thailand - I always eat Thai. So many of my meals are 100 baht or less, all up, and 200 baht is getting 'pricey'.

We all know about the Thai propensity for double-pricing. Is the price of farang food part of that, or are farang ingredients much more expensive than Thai ingredients ? Does farang food require a more expensive chef ?

Since many of the businesses we're talking about here are farang-owned, are these business owners just following the Thai trend to charge the tourists a premium ?

Prices can be shocking. Haagen Daz at Bt105 a scoop in Royal Garden Plaza, Starbucks coffee of the day tall and a buttercake Bt135, Prime steaks US (not currently available) sometimes over Bt1000 and even in Sizzler medium sized ones Bt650. Sizzler salad table only Bt180. Have a look at the new Pattaya Sheraton prices?

Part of the reasons for some high prices in Thailand are the transport here and the massive taxes and duties that can be up to 65% on luxury goods and that's without the tea money.

For Europeans we are always amazed at how cheap stuff is in America (now over 300 million population!) compared to the rest of the world. Clothing, electrical goods computer stuff, books, gasoline, taxes, air travel and hotels to name but few. Is it the massive home market with huge spending power? London's new super hamburger chain have prices starting at ┬г9 / US$160.

Maybe it's a case of God Bless my luck for living in America - high salaries and low prices!!

Obviously one can live incredibly cheaply in Thailand but many ex-pats and most tourists upgrade their lifestyle because it is so cheap to do so. There are plenty of places which offer as good value as the excellent White Knight, Cuisine au Beurre, l'Oliver. Bistro Zaza, Papa Davids to mention s few superb ones.

The worst of all the high prices and one which grates constantly is the price of wine which is about double the high prices that we have in the UK. I have tried to wean onto Scotch but wine makes me mellower and happier. Not only is it horrendously priced but so often out of condition. Roll on the Free Trade Agreements PLEASE!

[cottmann]

Is it the massive home market with huge spending power?

In part - and in part it is because the US dollar is the world's default currency so long as oil is traded in US dollars. Should that situation change, then watch out! Some economists, incidentally, see the widespread use of the US dollar as THE international currency as being a tax on other countries, so cheap goods in the US are subsidized through a form of international taxation on non-US citizens.

Moreover, the US statutory debt limit imposed by Congress of 8.184 trillion dollars - the US debt is currently 8.162 trillions - is expected to be reached mid-February. Once the debt ceiling is reached, then the US Government's credit abroad - its borrowing power - is gone and it is unlikely those countries currently keeping the US afloat will continue to do so. The PRC has already started to shift out of US dollars and Iran will start a Euro-based Oil Bourse in March - the fact that Iraq had moved to trade its oil in Euros is thought by some (conspiracy) theorists to be one of the reasons for the US-led invasion of that country.

February and March promise to be interesting months for the international economy!

GWM4ASIAN, Why didnt you just go to WESTERN CAR RENTALS in Pattaya just near the traffic lights near xcite disco.Farang owned.Think about this next time you want a car and do this,i dont want to see you driving around in a Thai owned car rental car being ripped off.

180 b for a hamburger? Oh yeah thats the new place in Day night ?
Thats $5.40 aussie for a hamburger,mate if i charged that here in Sydney for a hamburger there would be a bloody riot.
A hamburger with the works I got for $3.80 other day in the City of Graffitti Sydney City.Mind you the hamburgers at the place you didnt mention which was NIDDYS NOOK I suppose are quite good,unusual comments from me I know considering the owner hates my guts and i would never eat there again,but dont forget that includes chips,and the taste and presentation good as i ate their twice and was becoming a regualar until the owner abused me on this board thinking i was some old bloke that he could stand over and abuse,in which he cant cause im not old and i told him i would sit my 160 kg on him,not his face mind you,The best hamburgers in my opinion are at the Ambience coffee shop in Boystown.
.

"Once the debt ceiling is reached, then the US Government's credit abroad - its borrowing power - is gone... "

Ha!... Ronald Reagan taught us a very valuable lessonтАж Deficit spending does not matter!!!! One minor vote and the party goes onтАж It should be pointed out that the US deficit is huge in sheer number but as a % of GDP we borrow less than the Germans & French http://news.bbc.co.uk/2/hi/business/3233458.stm

Over the years there have been many schemes by oil producers to peg the price of oil - Saudi Arabia floated the idea of using gold a few years agoтАж gold dropped and they abandoned itтАж No one country can change to a different marker тАУ they all must agree to change тАУ and one thing is constantтАж They NEVER agreeтАж

You want to see something interesting in the world economy lets try making the Chinese Yen float at a realistic market priceтАж.

[cottmann]

"Once the debt ceiling is reached, then the US Government's credit abroad - its borrowing power - is gone... "

Ha!... Ronald Reagan taught us a very valuable lessonтАж Deficit spending does not matter!!!! One minor vote and the party goes onтАж It should be pointed out that the US deficit is huge in sheer number but as a % of GDP we borrow less than the Germans & French http://news.bbc.co.uk/2/hi/business/3233458.stm

Over the years there have been many schemes by oil producers to peg the price of oil - Saudi Arabia floated the idea of using gold a few years agoтАж gold dropped and they abandoned itтАж No one country can change to a different marker тАУ they all must agree to change тАУ and one thing is constantтАж They NEVER agreeтАж

You want to see something interesting in the world economy lets try making the Chinese Yen float at a realistic market priceтАж.

While what you say is accurate in terms of borrowings as percentage of GDP, there is some important differences between the US and the rest of the world. The countries you named export more than they import, unlike the USA, as the CIA World Factbook shows. Moreover, USA foreign reserves and gold holdings barely cover the difference between US imports and exports. The German debt is less than half, and the French less than a quarter, of US debt, and they have the foreign reserves to cover their debts.

Why must all countries agree to use a different marker? There is no international law to this effect.

Floating the Chinese yuan - not yen, that's Japanese - would indeed make for interesting times.

Your right bcknaway prices in Thailand can be more expensive,yes bar drinks,eg coke at 100b equals $3 aussie,coke in australia is $1.80 to 2 dollars in a bar here.
I dont buy most things like packets of glue or toothpaste anymore in Thailand as you can buy that stuff here in the $2 shops.
The markets are just the same price stuff here in Australia.
Mobile phones are just as dear or more pang in Thailand.
I bought flyspray cheaper in Thailand.Batteries a bit cheaper.



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