made in Japan = costs more in Japan??

Makes no sense, how could Japanese goods cost much more in Japan if it is
made in japan? A camera I own is 400 dollars more in Japan. This makes no
sense since it costs much more to ship that camera to the US, pay
freight+customs. Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.

In article ,
"Hugo Drax" wrote:

Makes no sense, how could Japanese goods cost much more in Japan if it is
made in japan? A camera I own is 400 dollars more in Japan. This makes no
sense since it costs much more to ship that camera to the US, pay
freight+customs. Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.

freight and duty in the U.S. is quite low.

Japan suffers from a multiple-layered and inefficient distribution
system. It's said there's 7 middlemen, all making their cut, between
manufacturer and consumer. In the U.S., I would be it's just 1 if you
buy from a big chain (manufacurer's U.S. subsidiary to big chain to you).

Hugo Drax wrote:

Makes no sense, how could Japanese goods cost much more in Japan if it is
made in japan? A camera I own is 400 dollars more in Japan. This makes no
sense since it costs much more to ship that camera to the US, pay
freight+customs. Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.

When I lived in Japan (for 13 years until I moved to Thailand 2 1/2
years ago) I rode a Japanese made Honda motorcycle. When I wanted to
purchase a new exhaust system for this motorcycle it was cheaper for me
to order it from "Dennis Kirk Motorcycle Parts" company in the US and
have them ship it to me, than to buy it from a local motorcycle shop in
Japan. This exhaust had been made in Japan, shipped to the US, sold by a
US retail operation, shipped BACK to Japan, and was still cheaper,
including what I had to pay for shipping, than buying it in Japan.

The Casio watch that I used to wear, made in Japan, cost $150 US in
Japan. I bought it in Key West for $70 US.

No one is undercutting anyone. The problems arise from the distribution
system that Japan uses for it's local sales. There are no discounts give
for bulk sales as all the links in the distribution chain are owned by
the same kiretsu and funded by the same bank, also owned by the kiretsu.
(Imagine that a kiretsu is the root of a tree. Every part of every item
in the chain is owned, fabricated, and distributed by the kiretsu to
itself.) It makes the machines that makes the tires and makes nuts and
bolts that go on the trucks (that it makes) that deliver to the
'middleman' (also owned by the kiretsu,) who finally sell to the
retailer who sells to you. And each link needs to make it's own 100%
markup so that it shows a profit at the end of the day. By the time the
item reaches the consumer... Well, suffice it to say that a copy of Time
magazine sells for $18.00 US in Japan and a bowl of ramen noodles can
cost $6 to $8. I don't live there any more. )

Steve Kramer
Chiang Mai, Thailand
http://www.photoenvisions.com


--
"The voyage of discovery lies not in seeking new horizons,
but in seeing with new eyes." - Marcel Proust

On Tue, 9 Dec 2003 08:25:11 -0500, the renowned "Hugo Drax"
wrote:

Makes no sense, how could Japanese goods cost much more in Japan if it is
made in japan? A camera I own is 400 dollars more in Japan. This makes no
sense since it costs much more to ship that camera to the US, pay
freight+customs.

US import duty for a 35mm film camera from Japan is 0%. Air freight is
probably less than local shipping (a few dollars per kg). Ocean
freight is basically free for something as valuable as a camera and it
takes only about 10 days to the North American west coast.

Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.

The retail system in Japan is very inefficient. Also, the Japanese
price includes 5% VAT. The US price is typically quoted net of state
sales tax (and the US does not yet have a federal consumption tax).
Further, it's hard to compare a 47th St. Photo with a Mitsukoshi..

Best regards,
Spehro Pefhany
--
"it's the network..." "The Journey is the reward"
Info for manufacturers: http://www.trexon.com
Embedded software/hardware/analog Info for designers: http://www.speff.com

"Hugo Drax" wrote in message
...
Makes no sense, how could Japanese goods cost much more in Japan if it is
made in japan? A camera I own is 400 dollars more in Japan. This makes no
sense since it costs much more to ship that camera to the US, pay
freight+customs. Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.


Lots of factors enter into the cost of an item.

"Peter L" wrote in message
...

"Hugo Drax" wrote in message
...
Makes no sense, how could Japanese goods cost much more in Japan if it
is
made in japan? A camera I own is 400 dollars more in Japan. This makes
no
sense since it costs much more to ship that camera to the US, pay
freight+customs. Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.


Lots of factors enter into the cost of an item.



Wow that took a lot of thought.

"Hugo Drax" wrote in message
...

"Peter L" wrote in message
...

"Hugo Drax" wrote in message
...
Makes no sense, how could Japanese goods cost much more in Japan if it
is
made in japan? A camera I own is 400 dollars more in Japan. This makes
no
sense since it costs much more to ship that camera to the US, pay
freight+customs. Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.


Lots of factors enter into the cost of an item.



Wow that took a lot of thought.


You are welcome.

In article , Peter L
wrote:

"Hugo Drax" wrote in message
...
Makes no sense, how could Japanese goods cost much more in Japan if it is
made in japan? A camera I own is 400 dollars more in Japan. This makes no
sense since it costs much more to ship that camera to the US, pay
freight+customs. Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.


Lots of factors enter into the cost of an item.

They don't either!!

--
First they gerrymander us into one-party fiefs. Then they tell us they only
care about the swing districts. They they complain about voter apathy.
-- Gail Collins

"Hugo Drax" wrote in message
...
Makes no sense, how could Japanese goods cost much more in Japan if it is
made in japan? A camera I own is 400 dollars more in Japan. This makes no
sense since it costs much more to ship that camera to the US, pay
freight+customs. Someone told me the reason this happens is companies
actually raise prices at home and get together making sure no one is
undercutting eachother (ie a oligopoly) something US laws prevent.

Others have blamed the arcane distribution system etc that pushes up retail
price in Japan. While this is true (as reflected in the recommended retail
price), the street price in one of the camera discounters like Big Camera is
a lot lower, typically 40% less than RRP. Even that price is undercut by box
shifters/net dealers. While the strong yen and weak $ makes Japanese goods
expensive for US visitor, lowest street price in Japan is roughly on par
with US online deals, sometimes less for things like lenses and other
genuine accessories.

Alec

Hugo Drax wrote:
Makes no sense, how could Japanese goods cost much more in Japan if
it is made in japan? A camera I own is 400 dollars more in Japan.
This makes no sense since it costs much more to ship that camera to
the US, pay freight+customs. Someone told me the reason this happens
is companies actually raise prices at home and get together making
sure no one is undercutting eachother (ie a oligopoly) something US
laws prevent.

I think the more complex answers here are valid, but the reality is that
the product costs more because people are willing to pay more. Others
can argue all they want about distribution systems, etc., and I'm in no
real position to doubt them. But if consumers demanded lower costs,
lower costs they would get.

John W.