I have a nice little Canon digital camera that I got for my birthday in 2009. It is an Ixus I camera, which is a tiny camera with a form factor similar to a cellular phone. In fact, when they first see the camera, many people think it is a cellular phone rather than a camera. It’s really a rugged little camera, made all of metal instead of the plastic that you usually see. It’s a pocket sized camera, as you can imagine since it is similar in size to a cell phone. I enjoy carrying this camera around with me wherever I go, so that a camera is always handy to capture a picture that could appear any time.
Lately, though, for six months or so, I haven’t been able to carry my little camera with me, because the battery was dead and would not accept a charge. Oh, I made a bit of an effort to buy a replacement battery for the camera, but could not find one locally. Really, though, the only thing I did was ask at SM Appliance center, where they sell Canon digital cameras, and they did not have a battery, so I put the camera aside and sort of forgot about it.
Last week, I needed a camera for a job that I was doing. I also have a Canon Rebel XT Digital SLR camera, which is what I use for most of my photography needs. However, this particular job required a smaller camera, the SLR was just too bulky. So, I thought about my Ixus and decided to make more of an effort to find a battery for it. I really didn’t mind even getting a generic battery for it, I really didn’t have a need for the original Canon replacement. So, with that in mind, my first stop was to head down to some of the shops in Uyanguren, or Chinatown here in Davao. I spent an hour or so checking out those shops, but could not find any camera batteries at all. I found plenty of shops selling knock-off cellphone batteries, but no camera batteries at all.
Next up, I decided to run to SM City, because there are a number of shops selling digital cameras there, surely one of them must have a battery for this camera! It was a common battery after all. At the first shop I went to in SM, I asked the shop manager, a nice man that I had dealt with before if they had a battery for the camera.
Oh my, that is an NB4L battery, which is our most popular seller! Sorry, we are out of stock, but should have more next week.
Oops, I needed the camera that day, so I couldn’t really wait for next week. As I began to leave, the manager said:
We do have the generic equivalent, though, if you are willing to take that.
Bingo! That is what I was actually planning to buy anyway!
So, I paid for the generic replacement battery, which was P1,475, about $32.50 for the battery, and was on my way. The price seemed high to me, but I needed the battery, and was just happy to have found it.
This morning, out of curiosity I decided to do some checking to see if I could get a price for that battery from some online retailers. I looked on Amazon and I looked on eBay. The price was similar in each place. Generic replacements for that battery (Canon NB4L) ranged from $0.99 up to $5.00 on Amazon’s online store! One place had three replacements for $5.99, or about $2 each. But, there were lots of offerings from Amazon for $0.99. Imagine, I could have bought more than 30 batteries from Amazon for the price I paid locally? And, on Amazon, these $0.99 batteries showed a picture and they were China made knock-off batteries that were the same as I bought locally! Same text, same markings on the battery. 97% lower in price.
A few years ago, when I bought my Rebel XT SLR camera, I ordered some extra battery packs from Amazon. I wanted to be able to carry 3 or 4 batteries with me when I went out shooting photos, so I never ran out of juice. Those generic batteries were $5.99 on Amazon. I had them shipped to me here in the Philippines. The customs charge was over $20 for three batteries valued at $5.99 each. So, customs was more than 100% of the value of the batteries. Wow.
Why are things like this so expensive here in the Philippines? These particular batteries are from China, and the Philippines is much closer to China than the USA is, so it can’t be shipping charges that are bringing the price up so much. Are merchants here just profiteering on the products? Are they unable to negotiate as good of deals as the US companies can? Maybe the US companies are buying much larger quantities, I don’t know. But, when the exact same item is $0.99 in the USA, or $32.50 here, something is just not right.
Does it surprise you? I knew that electronics were expensive here compared to US prices, but this amount surprised me.
Sidenote
Gusto ko maggreet sa akong buotang maestrang bisaya, si Bebe Metillo kay nagbirtdey sya miaging dominggo! Malipyon kaayo ko sa mga leksyon gikan kang Bebe, kay maayong maestra sya! Happy Birthday, Bebe, sorry this is a few days late!
Bob;
You’ve pointed out the very subject that is most vexing to me, whether it a camera, a cell-phone or any item at all, how can they sell it to you and not support it for you, with the items like batteries. And as you pointed after you search and find the item, then gouge you for it. Maybe it’s a conspiracy between the one who sells the item and the guy who sells the batteries?(lol)
Hi Paul – Yes, indeed. You know, being gouged is one thing, but paying 30 times the price… well, that is even beyond gouging! I personally think that it is largely due to overcharging by customs when the batteries are imported. I’m sure the retailer takes his share too, though.
Hi Bob, Gosh, That battery must have passed so many retailers and added their own tax and mark up before it even got to you in Davao. Plain highway robbery but what can you do, If you need it, you gotta have it and with eyes closed bite the bullet. Regards.
Ha ha.. Hi Jun – that’s the word I was looking for! Highway Robbery! Seems so true!
Bob
Supply and demand=Bend Over
Hi Neal – Yikes!!!
We ordered a bunch of electronic gizmos from China on EBay while in the USA. Amazingly they arrived in just a few days! Then, after we got back here, decided to order a few more. It took months! In the end we didn’t have to pay duty or customs (Christmas gifts for our package lady at the post office?) but the packages got hung up in postal neverland and we had just about given up when they finally came.
So, my guess is that we pay for the extra customs and hassle, +++.
Hi AmericanLola – Yes, this is very typical, no doubt on that. Postal deliveries here take forever, and you just never know when it will arrive! In fact, a friend sent me some stuff from the States a few weeks ago via Global Priority Mail… I’m still waiting for it! Ha ha…
Hi Bob – Customs duties and taxes can really spoil your day whenever you try to “import” something via postal or delivery services. Toss in the wait for customs to “assess” the value of your import, and the whole experience becomes bothersome.
I’d say that the manager at the SM City shop knows how to market a product! Knowing which products move, knowing demand will probably lead to secondary purchases (the generic), knowing the body language signs of urgency and desire of customers – all makes a good salesman! 😆
Hi Paul – What you say is very true, no doubt about it.
Bob: Ran into this issue with the Sony phone I bought here. Part of the price probably includes the freight to Davao in addition, since most likely they were imported in at Manila. The duties in the Philippines are on the high end… I see that pattern in many countries where imports are frequent and the government is either poor at collecting taxes or has low income tax rates. Finally, it probably goes back to supply and demand in the end.
Given the business that you are in, it would probably be worth it for you to make an annual weekend run to TPE, HKG, or SIN, load up on computer and other equipment, and BB Box it back here. For electronics, I’ve found no place on the planet cheaper than Taiwan (Laptops sell for 1/4 of the RP price, 1/2 of the US price there). In HKG, cameras are 1/2 the price of anywhere else, and you can get many Chinese knock offs there. Your savings will more than pay for the ticket price. The only issue is packing the BB box so that the goods arrive intact… Sometimes easier said than done.
Hi John – Shipping from Manila to Davao for a small battery like that would be under P100, and much less if the battery is just one thing in a package with many items, so that would not add much. I think most of the price difference is in the customs duty.
Your idea for a trip to Taiwan or HK is a good one. I’ve never done it, but it is something I would consider. I do have a pretty good system already for Balikbayan shipping from the US to here, through a friend who helps me out. On this particular day, though, I had left the camera sitting with no battery for a long time, and suddenly needed the battery right away, so I had to pay the premium. The trip, though, is a good consideration for avoiding this in the future.
Hey Bob,
Why not get a friend to ship you a small BALIKBAYAN box full of spam or something and just have them drop a half dozen batteries (from Amazon.com) in the box… Probably would not even get looked at, especially if they were unwrapped so it would not be so obvious they were new.
On the subject of shipping and quality: some friends from mainland China were here in Florida a couple of weeks ago and they bought some things to carry back with them to the motherland. Some of the items purchased here were originally made in China! Apparently, many items made there and shipped to the American or European market are built to higher standards than the same products sold for domestic consumption there in China. Go figure …
–Rich–
Hi Rich – Ha ha.. I don’t touch Spam, so that is out! 😆 But, honestly, I have a good setup with a friend in the States who is willing to accept deliveries on my behalf and then ship the stuff to me in a Balikbayan box, I just didn’t have the time to do that on this particular instance.
The situation that you describe with quality exports with China is exactly the same here, Rich. There are actually laws that the high quality goods cannot be sold in the Philippines and must be exported. The factories here that export goods must sell those goods for export only. Only factory seconds can be liquidated here in the Philippines, which is one of the reasons why we can usually only get low quality items here.
Hey Bob – Here’s an example of some differences in Philippine sales connected to the internet.
I saw some very fine Manila Cigars for sale on the manufacturer’s web site – a box of 25 for $26.00. That is truly a bargain, even though the price does not include duties, taxes or any other additional expense. The web page was rigged, however, so that I could not place an order.
I contacted the manufacturer, who informed me that the company could not make local sales via the internet, only export. The only way to purchase in the RP was to contact a retailer, or direct with a mandatory pre-shipment deposit of the sales price in a specific bank account.
The price difference? Foreign sale: $26.00 Domestic sale: $65.00. 😯
The reason: Different tax structure and tax rates for domestic tobacco sales. Additionally, the manufacturer has some distributor agreements with local re-sellers that they take care to honor.
I’m sure those tax differences (and customs duties) are the culprit(s) when it comes to excessive cost. 🙁
Hi Paul – Very interesting! That’s a huge difference!
Rich: That is why so many people from the mainland go shopping in HKG… The goods are “export” quality (Even though technically part of China) and HKG is largely duty free on most goods. Cross the border into Shenzhen, and the quality is the same as in Manila. Last trip to HKG, we bought a Nikon digital camera, 14 MP, with mini tripod, extra battery, car charger, case, and a “free” “Dolche&Gabbana ;-)” tote bag… Total cost: US$179. Add in the trip to the Japanese clothing outlets in the Ladies’Market with Rebecca, and I was definitely poorer on my return!
Do you have any idea, John, what the price for that camera would have been in Manila?
Bob:
Didn’t shop around for it here, but in the States, right after we got it, was nearly $300, without the extras.
Hi John – Wow, that’s a nice deal. Cameras here are usually at least double what they are in the States, so getting the deal you got was sweet indeed!
Bob: Actually, the biggest expense on these shopping trips is the other “stuff” we end up buying. Almost always it is things like sheets, towels and other linens; Jeans; Designer type clothing (Becky got excited at the Japanese clothing because it is cut to fit Asian female shapes, ie The tops aren’t made for giant boobs and the skirts and so on are the right lengths). We buy electronics… For instance, Sony brands sold in the Philippines are normally always remanufactured (fixed warranty returns). We buy specialty food, like Indian spices. We buy toys that are higher quality (esp. electronic toys). And, here’s another big one: Eyeglasses and sunglasses… Designer frames are cheap in HKG… 1/5 of the US price. Jewelery is also a good buy there, but you need to know what you are doing.
One other thing… HKG is the home of made to measure suits. A very high quality suit can be bought for under $500… A good quality suit for under $200. After wearing made to measure so many years, the fit is always better than “off the rack” or altered. You can get a custom made dress shirt for under $20. For women, things like bras can be made to measure (My ex wife had one boob slightly bigger than the other… She always complained that her bras never fit right… HKG solved that problem. 20 measurements or so, they kept her on file, and she reordered from the States!)
John, I think this comment comes under the heading of “too much information” ha ha… 😆
Hi John – Yeah, if you don’t go there specifically looking for certain things, and just “get what you see that looks good” you could sure spend a ton of money!!!
Interesting stuff John, I’ll need to allow a couple of days in KK just for shopping. With custom suit, electronics and computer software (mostly legal) on my shopping list, I’m sure I would run out of money by day three.
Hi Bob,
Maayong buntag!
Salamat sa imong greetings! Have maayong adlaw!
Bebe
Thank you, Bebe! Maayong adlaw pud.
bob,have you ever wondered why chinas foreign reserves is so huge? my country men are best in business anywhere in the world. phillipnes is about inefficiency . a country run by idiots and crooks. i stand by it. dont erase this. bir and custom the most crooked bastards.
Hi Eric – Well, I am not going to really comment on that….
Bob, I approach buying here this way. I just sent 9 Balikbayan boxes here loaded up with electronics, foods, clothes, kitchen stuffs… and I physically bought other new items like laptops, camera, etc… with me on the plane. Just the cost savings alone probably was way in excess of my plane ticket and other expenses of my vacation. With this in mind you might want to condier a trip to the states or other places possibly in Asia where you can save considerably and also of course send Balikbayan boxes back. So your trip is paid to an extent. I will never buy high ticket items here except for perhaps a large LCD which I have no choice about. My mother is coming here to live so I will have her bring me a larger refrigerator, Oven and other high ticket kitchen items as part of her retirement import exclusion.
Hi Richard – I agree with you, and I actually have methods set up to get stuff here cheaply. My problem on this occasion, perhaps I did not write clearly enough, is that I needed the battery that day. Not much you can do but gulp and lay out the money in that event.
Oh you were very clear as always in your writing. That’s what makes your site so very interesting. Your topics are usually refreshing and easy to get!
Ha ha.. thank you richard. The reason I thought I might not have been too clear is because several people said “you should take a trip abroad” and such… and well, that just wouldn’t work in this case! 😉
Were you dealing with a known merchant Bob ? Could it be possible that the merchant spotted you as a tourist and maybe applied ” Kano Tax ” ? I understand how it is though when you really need something ” Now ” , price may not be an issue, just an irritation.
Hi Bob – No, this is a guy that I know, I have done a fair amount of business there. Also, the price was clearly marked on the package, so I am certain that he did not try to overcharge me.
Welcome to the Philippines Bob!! If I go home to Davao, I will let you know and maybe I can bring some stuff for you from USA that are cheaper. I also buy stuff on amazon and ebay which are way cheaper compared to Phils. price. I have a Fujifilm s1500 digital camera which uses AA rechargeable batteries and should be easy to replace if I go to Davao without extra battery.
Hi jeff – Ha ha… many of us think of the Philippines as the land of everything so cheap… but in certain categories things are very expensive here! Yeah, with your camera that takes AA’s you are good to go anywhere in the world!
Morning Bob,
I’m afraid all retailers are merely “box movers” nowadays and don’t offer any sort of support – no money in that. Plus, from their point of view, how could they possibly support all he products that are out there now? I’m afraid we are expected to buy a new “box” when the previous item fails in any way. Also, I can’t see how people are going to be able to get spare parts in the future for all this cheap chinese stufff they are selling – bit it cameras or powertools or generators, etc. I have a 5mp Kodak digital from 2003 that is still an excellent camera for my purposes. I only recently decided to change the rechargeable batery as it wasn’t keeping its charge for long. Cost me around A$30. Hopefully it’ll keep going for many more years. Had no trouble getting a replacement from the local electronics/camera store in regional city here.
Hi AussieLee – In many ways, I agree with you, but I disagree when you say that “all retailers are merely “box movers”” and don’t offer support. Many retailers are not like that. I am a retailer, and I do whatever it takes to support my clients.
Hello Bob, electronics are more expensive at Philippines but when it comes to food and medical services its way cheaper there. A meal at Mcdo here at USA now cost more than $6 but I think Phils. is just around $2. When I went to Davao last 2008 I also did some dental work coz dental services there are way cheaper. A root canal here without dental insurance cost at least $1000 or more but at Davao it only cost me $60.
Hi Jeff – You are absolutely correct!
remember that you are in the philippines Bob 🙂 …Phil n Jess
Indeed, Phil!
Hi bob i did notice this as well when i was there that things like kettles and irons seem expensive also mobile phones and as you say cameras , we did some shopping on ebay for the families xmas presents and got my wifes sisters two kodak easyshare cameras they were rapped not in there dreams did they think they could afford something like this and it helps them with there teaching duties as well so a double bonus , i bought a kettle when i was there so i could have a cup of coffee in my unit rather than boil in a saucpan used it once and it blew up ok it was a cheap kettle but i thought it would last a bit longer than that , we use ebay and as you say amazon for all our gifts now for family even with postage i think it is cheaper ,maybe thats another way to make a living in the phills it sounds like it has a high profit margin on it you could open a store at sm mall, bobs batteries could be worth looking into
cheers chris
Hi chris – I have done a lot of business on eBay, and there is a lot of money to be made there, that is certain!
Hi bob as you may or may not know i live in aus but i can get onto the ebay ph site at the bottom of the home page here , one thing i notice is that even though i see things i like there ie jewelery for my wife most times they only post to the phillipines which is a hassle i agre there is probably money to be made on ebay for the wise unfortunately i am not that wise i wish i was my wife wants to start a jewelery buisness as the gold is of high quality and relatively cheap compared to the west we are looking into the idea hte biggest thing i miss from the phillipine food area is the bacon , since coming back i have not eaten bacon from here it is c******* compared to the flavour of the bacon there have tried to get it here but to no avail we even have a philipino food store in my suburb and still cant get it next time you have bacon and eggs think of me will ya !
chris
Hi chris – ha ha… everything is better with bacon! 😆 Indeed, I agree, they have some good bacon here.
Bob,
No way can I justify or even figure out why some import prices are so high. Seemed too random to me, so I did a little research to see if customs (tariffs) were the real culprit. With few exceptions, import tariffs into the Philippines are pretty low! I looked up the offending battery in the Philippines Asean Harmonized Tariff Nomenclature (AHTN). for 2010. The duty rate is only 5% for countries not part of Asean (free for them).
Of course that battery could have been priced back before 1999 when duties were much higher. I don’t know. But you can take a gander thru their Asean Harmonized Tariff Nomenclature (AHTN) here:http://www.tariffcommission.gov.ph/AHTN_(TARIFF)_BOOK.htm . What you find there may shock you, but not in the way you might expect. For instance, you high society battery would be found under 8507.20.80 Just look at chapter 85 and scroll down.
A few hints: MFN in that schedule equates to Most Favored Nation, which for the Philippines is any country NOT a member of Asean. If the numbering system looks confusing, know that almost all countries use the same numbering system. If you are looking for a number of a product but can’t quite figure it out, a quick way is to look at US CROSSS search system at http://rulings.cbp.gov/ . Word search for a product and get rulings that show HTS numbers that are basically the same as AHTN.
Thanks for that info, rovineye! I appreciate it.