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February 28th, 2012

Malaysia is Expensive

I’ve heard this a thousand times .

Why are things here more expensive?
Not just guitar , many things in general – sports wear , books , electronics , clothes
Most people will answer you there is tax , there is shipping , there is operating cost bla bla bla..

Frankly speaking , alot of answers are not very satisfying.
The other day , I was in a retail shop and i asked the salesman the same question . He gave me an interesting answer.

“Because we are buying as a foreigner…”

Alright , alright ..the way he put it was kinda “cina” . But he deserves some good credit . He made me think .

Basically , it means you are comparing other people’s local brand , with their local price tag against your country’s price tag .
Its the same as - In the seller’s eye , you are from foreign country , you are not his “gang” and he wants to earn more from you because he can . 

Imagine this :
You’re a business person , you’ve somewhat made your brand very successful locally .Then there is this other neighboring country that demands your products .
Of course you want to make sure your locals still get it cheaper than the foreigners .
How would you do it ? Offer the wholesaler a very low discount , say 10% or 15% . When it reaches that foreign country , they have to mark up to sell higher . OR ,  ship directly to the end user , earn through shipping .

Its all about the product’s country of origin : 

If you’re in Australia , a bun that cost RM2 in Malaysia will cost triple in Australia .
If you’re in Japan , a USA made guitar will be very expensive , whereas a Japan made guitar will be cheaper .
If you’re in UK , Marshall , VOX amp will be cheaper .
If you’re in USA , Gibsons , Fender will be cheaper .

Okay , Music Master is selling Ceriatone. No matter what , after shipping and tax. You have to admit a foreigner still pays more for a Ceriatone amp , compared to what Malaysians are getting :)

Talk about local guitar brands : L.Luthier & Morrison guitars . If those brands reach say , Singapore . I am very sure they will cost more there . Why? Because the sellers can .
Same goes for education , properties , air asia . End of the day , the locals will always get a better deal .

The rule is pretty logic right ?

What happened next was , i told the salesman this .

“Wei you sure about your rule ah ? If its true . Why proton cars more expensive in Malaysia?”  He couldn’t answer . 




4 Responses to “Malaysia is Expensive”

  1. very good last punchline :D

  2. He should’ve said, “Because fuck you. That’s why.”

  3. pawned

  4. Apple in Malaysia is cheapest. We got some of the cheapest 5 star hotel, cheap and wide variety of food, cheap universities, cheap electronics. Seriously man, you can find a pretty decent guitar for cheap here. Even you said yourself Orange amps in Malaysia is the cheapest.

    I think the expensive stuff are the higher end ones. Well you can always take a trip to Singapore if you wanna look for expensive stuff.

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