Thursday, April 2, 2009

How Sweet Are The Deals?

We've stumbled upon some pretty great deals here in Jakarta. The marketplaces are swamped with clothing, shoes, bags, wallets, perfumes, phones, and much more. One particular spot known as "Block M" has proved to be especially fruitful. We purchased some much needed items like bags, shoes, and wallets. The high-end name brands and apparent high-quality of some of these items is astonishing. All at minimal cost.

I know what you are saying right now: "Come on! You know those 'name brands' are fake!" Maybe so. But keep in mind that Indonesia is a manufacturing mecca and many of the name brands that we purchase in the USA are made in this part of the world. We aren't paying to cover freight, labor and the premium pricing that comes with US sold goods. So who knows if these name brand items are the real thing or fakes?

Not convinced of the great deals? Try this. Pictured here is a 5 GALLON jug of Dannon water. You all know Dannon. They make yogurt and have a water line as well. You can't really dispute whether this is real Dannon water or not. It just is. My point is this: I've purchased many single gallons of water at grocery stores back home. I know that an off-brand water costs about $0.99 per gallon. So tell me why this 5 GALLON jug of Dannon water cost us $1.25 for purchase AND delivery. That's right, it came straight to our door after one phone call and cost us only $1.25.

In my mind, this is a clear demonstration of reduced production costs in developing nations.

4 comments:

  1. Wow.. What an interesting fun trip y'all are having.. That's a neat perspective on the goods.. my only thought is that with resources and capacity to build being finite, why would someone who produced a name brand good that could be sold for a premium let it go for a huge discount, i.e. small margin, in a small market? Not that you really would want to know if it wasn't real, but it would be interesting if you shipped a sample of the water back and had some analysis done.... :) Many blessings on your travels and thanks for the neat stories.. - Kris

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  2. One more thought, speaking of deals, you can get some pretty good ones on custom clothing in Singapore. I had some nice suits made when i was there and they were very affordable and of good quality. Shop it around before you bite and make sure you get good material, i.e. high thread counts.. Again.. many blessing.. - Kris Von Hohn

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  3. My thoughts--would water be processed in Indonesia and then shipped to the U.S.? There can't be that much to putting it in plastic containers. Ha! The value of the dollar is higher there, that is for sure. And that also will bring that price down as well as the export costs for many goods. I am thinking about how you will get all your gear home? Ha!

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  4. Hey guys, I'm from Indonesia and I love your website, I'm so happy because you come to Indonesia and you said that you like it here.. Thx for coming here guys! :)

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