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Why do Western fast food places and others charge such high prices?

I do believe
#1
Many (Hospitals, Western hotels, Western fast food places, Starbucks all rape the pocketbooks of Westerners. Perhaps OK for the tourists but irritating for those of us who live here. Many (most?) of the cafe's in District one are on the gravy train also; selling Coke for 30.000VND or more but buying it for 5.000VND. In fact beer is cheaper than Coke. Many of the waiters at these places make $150 a month with one day off. If wages are extremely low and supply costs are low, there is no justification for the exorbitant prices. Oh well who cares?
2 members reacted to this post
See also
ssuprnova
#2
Well apparently you do, since you've started a topic about it?

The short answer is: because they can. Nobody is forcing people inside Starbucks, yet their locations look full on the weekends and most weeknights (notice the "look" - I've never been, just driven past). Also, having relatively high prices raises the product's perceived value. Not sure why you'd classify their pricing as "rap[ing] the pocketbooks of Westerners" since we're free to take our business wherever we choose. In fact, it's precisely for that reason that I've never been to Starbucks in Vietnam, since there is a plethora of good independent shops that are less crowded and charge a fraction of the chain's prices.

As for cafe prices: you're not paying for the can of coke/cup of coffee, you're paying for space (and air-conditioning, and wifi). In some countries, it's common for the coffee shops to have two-tiered pricing: one "for here" and the other "for take-out", with the latter typically being 30-50% less expensive. In big cities all over the world the largest expense that businesses have to bear is the lease. HCMC is no different: in the past few months a coffee shop closed down and offered a lease takeover. District 3, three floors, the whole affair not larger than the size of a modest shophouse: $6000 per month if memory serves me correctly. That's a lot of money to raise from making VND 25,000 per coke, not even including the operating costs.

Another factor to consider is exclusivity: in Japan, for example, there is a chain of coffee shops that set its prices a notch above the competition. Their locations are typically quiet, there is soft classical music playing in the background, and the (limited) seating is a hodge-podge of faux-European furniture, which is admittedly very comfortable. There's no hustle and bustle of people stopping by for a cup of take-out, no blenders going off every few minutes, no banging of portafilters being emptied of grounds: this is what you can choose to pay the extra for.

Edit: As for Western fast food, I'd say the perceived value point stands, as does the "paying for space" one. In regards to hospitals, you can't be serious if you've ever been to both a local hospital and an international one.
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I do believe
#3
Yes I do care especially when I pay a higher price than someone else. I agree the rent is probably the biggest overhead of all. Absolutely obscene sometimes. But.......I know the owner of one small coffee shop on De Tham goes jet setting off here and there, maybe she inherited the money. International versus local hospitals - been to both - they are both good except speaking Vietnamese is mandatory in the local ones. I think the fees at the international hospitals are exorbitant; OKay if you are employed "back home" but not so OK if you are working here. I just have this sneaking feeling somebody is making a killing at the expense of the country and/or citizens. Thanks for a good post.
G
#4
I go to VN hospitals such as An Sinh, no problem.

I have been wondering, for a guy who says he knows so much about Viet Nam, you ask questions that I would expect from a new arrival.
1 member reacted to this post
I do believe
#5

colinoscapee wrote:

I go to VN hospitals such as An Sinh, no problem.

I have been wondering, for a guy who says he knows so much about Viet Nam, you ask questions that I would expect from a new arrival.


I have been a student all my life formally and informally. When I teach English at school I get lots of questions and one is, "Why do I teach?" My answer is, "Because I am a student and I learn so much from my students." Their reply is usually that I am the teacher and they are the students. Yes but no. I don't particularly know a lot about Vietnam as compared to many educated Vietnamese residents but usually more than Viet Kieu and I have absorbed a lot simply by being here for a while and getting my feet wet, for example I joined the Buddhist religion and then a year later I joined the Cao Dai religion even though raised as a Christian. (I am going to hell) I learn by immersion and I have found myself in the oddest situations by having only Vietnamese friends, I see and do things few if any expat residents of District one will ever do. In Tay Ninh they tell me I am the only expat Cao Dai in Vietnam, I doubt that but certainly a select club. Teaching Hmong in Sapa, swimming in Ha Long, DaNang, NhaTrang, etc down to PhuQuoc, motorcycling solo the Ho Chi Minh trail and more has been such an adventure.
Yes - you are right - I do know many of the answers to my own questions but often consensus can be the best way to come to a conclusion and I really enjoy hearing other people聮s experiences and perspective. I have 3 life slogans that I often think about, "Perspective is everything.", "You can rationalize anything.聰 and 聯I have seen the enemy and the enemy is us.聰 I even like to read Chris Fox stuff!

G
#6
Ok, thats a fair reply. Not sure I would be asking questions about something I have already come to know.We are all different and its your right to do as you like.
I do believe
#7

colinoscapee wrote:

Ok, thats a fair reply. Not sure I would be asking questions about something I have already come to know.We are all different and its your right to do as you like.


Ah - but colinoscapee - you never know everything about anything. I have learned several things from you and thank you for that. The greatest statements a child or a man can make are questions; Why? or How?

EricSchmeric
#8
It all boils down to supply & demand lesson 101. They charge that much because they can, there are enough people willing to pay for the asking price.

If you are looking for a more philosophical answer that's also pretty simple. People like to be seen hanging out at fashionable places.

You'll get decent treatment at a Vietnamese hospital. That's if you are able to understand each other. If you are in need of serious medical attention it's worth forking out the extra cash to see someone that speaks your language.
Adhome01
#9
It's D1,what do you expect? It's like asking why I an apartment in Manhattan costs more than in Cleveland. If you want local prices (including hospitals) get out of D1 and learn Viet. A lifetime student like yourself should already know this聽 :D
James
#10
Well, at Micky D's back in Canada you'll probably have to shell out more than $10.00 (CAD) nowadays for a Quarter Pounder Meal, even more with cheese or the Quarter Pounder BLT meal. Convert that into VND and see what you get... somewhere around 195,000 VND. So what do they cost at McDonalds in HCMC???? Western fast food restaurants traditionally charge their "western fast food prices" all over the world, I don't see why that would surprise you? It doesn't happen just in Vietnam. If you want to sip a Starbucks latt茅 here in Brazil you need a Platinum Card or you have to sell your firstborn child. McDonald's here, well just forget it.

These restaurants price their menu items the same worldwide for a number of reasons; franchise costs, ongoing promotional fees, etc. the wages of the employees is just a small part of the overhead. Do you actually think McDonald's Canada pays their staff the minimum wage? They hire only students so they can pay the Student Minimum Wage which is a dollar less per hour than the adult Minimum Wage.

What's the big surprise? It's not like you've never heard of CAPITALISM before.

Cheers,
William James Woodward, EB Experts Team
thecoolchazza
#11
I think because people choose to pay theses prices, I would tend to avoid District 1 and stick with District 5, 6 or 10.
I remember seeing coke selling at 70K at a cafe somewhere in District 1.
mikeymyke
#12
Seventeen Saloon, District 1, Pham Ngu Lao street, 70K for a can of Coke.

The prices are high, but that's the price you pay for entertainment.
minh goodrem
#13
maybe you are new guy there. do you know BUI VIEN street district 1聽 beer just 20.000 vnd( 1 aud)
food ok too not so expensive .
but many westerner now they choose v农ng t脿u for retied only 1h 30 on bus from Ho Chi Minh. very cold beer around 15000 vnd to 20000vnd. VUNG TAU not so busy like Ho Chi Minh near the beach peace, you can rent apartment from 4 to 8 million full furniture, kitchen,air conditioner, security...
G
#14
You wont get a nice apartment in VT for 4 million.
VungTauDon
#15
I'm paying 6.5 million for my 3 story, 4 room house in VT
G
#16
Yes but I bet its not where all the expats live.I rent a place here too, 5 bedrooms and 5 bathrooms,3 floors, but its in an area where there are no expats.
VungTauDon
#17
Yes, Kha Van Can, but some of the biggest houses in VT are on my street.
DanFromSF
#18
I think a better question is why do people agree to pay ridiculous prices?聽 For example, there's a Highland's Coffee on Le Thanh Ton in D1 and they charge -- what, 40.000 or 50.000 for ca phe sua da.聽 Right across the street, down an alley is a little coffee shop called "Corner coffee" or something that charges 13.000 for ca phe sua da, and it's BETTER!聽 That Highland's is always busy, so whose fault is it that they charge what they charge?
richard hunter
#19
why ask ? you already know?
DanFromSF
#20

richard hunter wrote:

why ask ? you already know?


Who are you talking to?

minh goodrem
#21

colinoscapee wrote:

You wont get a nice apartment in VT for 4 million.


my friend rent apartment 3 million at Nam Ky Khoi Nghia street but she have to put furniture by herself.聽 with 4 million you can rent 48 m square apartment at Vo th峄� sau street . and will cheaper if you rent at SEAVIEW apartment. and up to how much middle man charge you

G
#22

minh goodrem wrote:

maybe you are new guy there. do you know BUI VIEN street district 1  beer just 20.000 vnd( 1 aud)
food ok too not so expensive .
but many westerner now they choose vũng t脿u for retied only 1h 30 on bus from Ho Chi Minh. very cold beer around 15000 vnd to 20000vnd. VUNG TAU not so busy like Ho Chi Minh near the beach peace, you can rent apartment from 4 to 8 million full furniture, kitchen,air conditioner, security...


Yep, not like the 4 million you said with full furniture. For 3 million its a very small basic apartment, my friend rents on Nam Ky Khoi Nghia and he pays 7 million partly furnished.

minh goodrem
#23
i m Vietnamese. so maybe i don't know how much price at Vietnam
my friend have apartment for rent at 145 Phan Chu Trinh 64 m square, 2 bed room, 2 bath room, air condition full furniture near the beach 6.5 million, 9 million seaview
聽 what you respect with 4 million??聽 you can find on Vietnamese web then you can see . and can not say any thing if you are not look
charmavietnam
#24
Oh you are talking about VT, I thought NKKN and VTS street in HCMC聽 :)
milkybunnyHCM
#25

ssuprnova wrote:

Another factor to consider is exclusivity: in Japan, for example, there is a chain of coffee shops that set its prices a notch above the competition. Their locations are typically quiet, there is soft classical music playing in the background, and the (limited) seating is a hodge-podge of faux-European furniture, which is admittedly very comfortable. There's no hustle and bustle of people stopping by for a cup of take-out, no blenders going off every few minutes, no banging of portafilters being emptied of grounds: this is what you can choose to pay the extra for.


I believe you are right. After grocery shopping at Giant in Crescent Mall my husband was taking too long to come pick me up so I decided to go to The Coffee Bean upstairs and wait for him. I was stunned to see an Iced Matcha Green Tea for 100'000. But after sitting down with my expensive drink I realized the sofas were comfy, the music was relaxed and it was nice and cool. I paid for the ambiance more than anything. The same drink would have been 30'000 at a Viet coffee shop but it would have been filled with cigarette smoke and no AC. You get what you pay for, I suppose!

Tutenkamen
#26
One part to consider also is the cost of importing into Viet Nam. Not saying that is why but, it could effect the prices of many 'Western' products. But on the other hand, whether a business charges very high prices and another outside of District 1 charges much lower prices, they both pay the same ( or roughly the same depending on who their supplier / shipping company is )..on importing the items to Viet Nam. Unfortunately and is the case the world-over, the human nature of GREED takes over and business owners can do mental gymnastics in 'justifying' their higher prices.

My difficulty here in HCM is the lack of good spices. I love to cook and I cook Indonesian, Arabic, Persian, Greek, Italian, Indian/Pakistani, and Thai. I so much miss my beef kababs, chicken kababs, a nice fresh crispy Arabic salad and a nice hummous with actual fresh pita bread. Indian butter chicken sounds SOOO good right now..or chicken tandoori.聽 I've tried one Arabic place and an Indian place in D1 and they were nothing but want-to-bes and were not even close to the original thing. And almond milk!聽 I miss it!聽 A nice cold glass of unirradiated organic almond milk.

Good high quality minerals and vitamins?? Huh? What's that?聽 And a good quality protein powder?聽 I had to go to Amazon and get a decent protein powder. Good quality vitamins & minerals that are NOT made in a lab are impossible to come by in Viet Nam.聽 Is the water even safe to drink here? I boil all of it when I have to consume it. I'm sure all the cafes, etc do not. No way will I come close to eating the seafood. Many parasites in the fish and waterways around these parts. Pork??聽 Ha...forget it.
Tutenkamen
#27
Also, Starbucks and other places may be franchises. They will use formulas to determine the prices of their products depending on several factors. Most people hear "Starbucks" and they go 'ahhhhhhhhh'. So much is just in their name that people think Starbucks is a gift from heaven. I don't do Starbucks, or McDonald's or KFC or any of 'em. On top of that, much of their overpriced items generate a very large profit for them and they send much of it to their buds in Israel. Israel already gets billions of free money each year from the U.S.聽 I will leave it at that.
Happy8888
#28
Very well written reply
G
#29
Many countries give money to other countries,so whats your point, or you just dont like Israel.
DanFromSF
#30

colinoscapee wrote:

or you just dont like Israel.


With a name like "Tutenkamen", what do you think?

1 member reacted to this post
G
#31
Well I asked for the simple reason of clarification. I did see the name but did want to make an assumption.
Tutenkamen
#32
Hello. Is that a question or a statement?
Tutenkamen
#33
You probably are now aware of the fact that before Egypt was called 'Egypt', it's name was Kemet. The builders of Kemet were a part of the 9 societies living along the Nile River from the mouth of the Nile al the way to it's headwaters reaching into the interior of 'Afrika'. 'Afrika' is the name given to the land by the Romans. It was a Black Afrikan society in ancient Kemet. You are assuming they were of Semetic (otherwise known as Arabic ethnicity). No. the Asiatics invaded Kemet from the North repeatedly. Look at the stone carvings or paintings of 1000's of years ago and those were Arabs. The facial features, along with actual ancient writings, show the people of ancient Egypt (Kemet) were of the Black race.

Now. Moving along to the Western world and the US of A. In what year did 'America' become a corporation known as the UNITED STATES of AMERICA? Now if you were indoctrinated and 'learned' your 'education' in the US of A 'educational system', then this may be challenging to you and you may have to go to your favorite search engine and look that up. After you do, we will proceed. Understand?
DanFromSF
#34
How is any of that relevant to the prices in western fast food places in HCMC?
1 member reacted to this post
Tutenkamen
#35
I am responding to a statement made form one that responded about Israel.聽 Patience and you will see what I am getting at. First, I am laying a foundation. Too many American simply talk and talk and talk and do not involve themselves in truthful facts from history that lead to the present.
DanFromSF
#36
You're off-topic and we're not here for you to teach us your version of history.
1 member reacted to this post
Tutenkamen
#37
My version?聽 I have not even said anything yet about a "version" of history. It's a matter of U.S Code that the UNITED STATES of AMERICA is a Corporation.

UNITED STATES CODE
TITLE 28 3002 (15)
(A) (B) (C)

Each "CITIZEN" of the UNITED STATES of AMERICA is a franchisee (employee) of the Corporation.

It's not a 'version', it's US Code operating under Admiralty Law from when the U.S went bankrupt in 1933. Since then it has been owned and controlled by foreign investors that operate out of Washington District of Columbia.

Furthermore, I support Viet Nam in its right to protect it's own sovereignty from Chinese expansionism.
l3ully
#38
If I see only Nha Trang, then I still wonder, why foreigner can sell at such cheap prices. Rents for a foreigners quite often increasing easy 50% or more every few month, and they pay commonly more for everything.
milkybunnyHCM
#39

l3ully wrote:

If I see only Nha Trang, then I still wonder, why foreigner can sell at such cheap prices. Rents for a foreigners quite often increasing easy 50% or more every few month, and they pay commonly more for everything.


Foreigners require more help and effort. After renting a condo to a foreigner recently I can see why they are charged more. You have to have a business license to rent to them and they ask for a lot of help. :)

l3ully
#40
so the 1 kg of meat is not 1 kg but 10 kg then?聽 聽:lol:

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