Kind of a losing proposition

Operating costs for Brazilian businesses relying on imported goods are stiff, reports the WSJ [paywalled]:

Keeping prices low has been a challenge for most retailers because operating costs in Brazil are high. Apparel vendors in Brazil pay an estimated 35% in taxes on their products, compared with about 8% in the U.S., according to Alexis Frick, a São Paulo-based analyst for market researcher Euromonitor International. Retailers that ship their products in from abroad pay as much as 35% in addition to those taxes in import taxes.

Which explains how this happened to Fausta:

When a friend from Brazil told me my KitchenAid mixer (that retails for $250 on Amazon) sells in Brazil for US$1,000+, I asked that he take it when he went back, sell it, and we split the profit. He already had bought one for himself, otherwise I would have sold him mine.

As Glenn Frey might have said, it’s the ultimate enticement.

1 comment

  1. Brazil's high operating costs | Fausta's Blog »

    20 March 2014 · 4:41 pm

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