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We pay more for everything. Is it really because of less population, I don't think so. It also depends a lot how many times product changes hands before it reaches the consumer. I mean the middle man. I worked as a mechanic many years and its common that managers put sometimes up to 150% mark up on the parts we use. Minimum is 35-40%, I have never seen less than that. The problem is the people we buy it from did exactly that selling it to us and someone else did it to them before they bought it.
For example; Bendix brake pads we pay to Repco $45-50 dollars, Repco rep told me they pay only $10-15 dollars to the supplier who pays them $5 dollars. If you buy it yourself from Repco you will pay 25-30% on top of what business pays for it which is $45-50 dollars.
A lot of money made by middle man, consumer pays for it. Actually the middle man and that is a few of them in the process made much more than manufacturer of the product. Government is happy to take 10% GST every time for the same product on top of that.
So we wonder why things are so expensive. This is just one example what I know about but the thing is I hear the same thing happening everywhere.
Look at the price of bananas. People say we should support local farmers and I agree with that. I would be surprised if they get fair piece of that $15 per kg currently. Yet again the countries who cant grow them pay import tax, transport, distribution and its still $0.55c or $1 dollar per kg.
Nintendo DS 3D made in Japan. We are closer than USA to them. Here it costs $350 in USA $175 !
And they wonder why people don't buy here.
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