why the hell is everything imported so expensive?!? the basics...

so, you've made your way down here and have got things fairly in order. what's next? time to do some shopping! however...


wait a second... everything is so expensive. things can be up to nearly double if not triple the price!!! ipods, computers, TVs, microwaves, clothes, shoes, and anything and everything else your consumerist mind desires.


what gives???


well, it's the import law and taxes. now, you may tell yourself, 'ok, i can wrap my mind around that.'


however, most other places in the south america you can buy the same goods for much cheaper.


let's take a look at a few items that can be bought online, new, at major internet retailers in both brazil and in the US.


NOTE: i know you can probably find stuff cheaper other places. this is just an example using two big stores in both places. for this comparison, i will be using best buy for the states and lojas americanas for brazil. also, i will be using reais for the currency.

Item	Best Buy (USA)	Lojas Americanas (Brazil)
ipod nano 16gb (black)	R$ 285.25	R$ 679.00
canon digital camera (SD3500IS)	R$ 580.30	R$ 1,699.00
macbook pro (mc024xx/a)	R$ 4,046.83	R$ 8,199.00

now, granted that these are mostly what some would consider luxury items, but i think the point has been mildly illustrated.


what brazil has done here is to jack up the prices on all imported goods in hopes that the average consumer will have no other option than to buy brazilian made goods thus bolstering the economy. this looks good on paper. or does it?


most companies don't have direct distribution points here in brazil because brazilian import law is extremely complicated and so expensive to operate inside of brazil that it doesn't make it worthwhile enough for them to even try.


so, what they have a lot of here is resellers and importers. basically, people that have bought goods abroad, imported them into the country, and have resold the goods to retailers.


let's take a very basic glance at where your money has gone when you shell out 8200 reais for a macbook.


1) the exporter - this guy has taken his cut of the money to export the goods to brazil
2) the importer - this guy has taken his cut of the money to import the goods to brazil
3) the reseller (aka distribution) - this guy has taken his cut of the money to get the goods in the hands of retailers
4) the retailer - this guy has taken his cut of the money to make his share when selling to you


oh yeah... we can't forget...


5) the government - these guys have taken the majority of the money in import taxes just because they can. often times, things can be subject to up to 100% of the original value of the product in taxes. some things can be even higher!


one of my many problems with this system is the fact that brazil doesn't manufacture some of the goods it charges high import taxes on. meaning... you don't have the option to buy the brazilian equivalent. meaning... the system doesn't make sense in these cases. the government is just gouging you on these products because they can. 


my suggestion... do some research before you leave. somethings are much more worthwhile to bring than other things if you plan on living here. when accounting for space in your luggage, i'd recommend doing some shopping up there before coming down here. if you come down here with a shit ton of clothing and not a decent pair of headphones or a cell phone you'll soon realize that you're going to spend way more money on replacing headphones than buying new t-shirts or socks.


here's a small wishlist of things i wish i would have brought...

• bike tool
• computer mouse
• backup cell phone
• certain medications
• more contact lenses
• books, books, books...
• running shoes
• silverware (yes... silverware)
• guitar strings and other accessories
• power strips
• and sooooo much more....

if you plan to move down here and your suitcase is more than 25% filled with clothes. your wallet will kick yourself later.

ohhh i have an idea!!! i'll have my friends or family just ship me stuff down here!!!!

ummm... go ahead and try it. maybe you've heard of the gift trick? have someone put it in wrapping paper and a nice little birthday card on it so the government doesn't put any tax on it cause they think it's not going to be resold. yeah... talk to people who have actually tried that. this government wants your money and they don't really care if it's your birthday (or in this case your non-birthday)

i'll write more on shipping stuff down to brazil in another post.

to wrap this post up, does this mean that it's super expensive to live in brazil??? not really, no. what it does mean is that you'll need to either liberate your brand loyalty or your savings fund to accommodate your brand loyalty.

been mind blown on prices down here? hit that comment box with your story.