plundccre

can someone explain to me why bananas cost more in the markets in Los Angeles than they do in Seattle? The bananas are ship from central America to the port of Los Angeles and are then trucked to Seattle. Since there are additional traansportation costs involved why do the same chains of markets sell them for less there? higher transportation costs are always cited as the reason for higher food costs in Hawaii. why does the same logic not apply here?

Yug

They price them higher because they can.

Hawaii is a totally different situation. Many things here are priced much higher than they should be because two heavily unionized companies monopolize the shipping dock space and charge extortionary prices because they have no competition to keep prices more reasonable. Also, many local companies here blame higher prices on 'the price of paradise', but the reality is that they just use that as an excuse to jack up the prices of things because you can't drive to another state and get it at a more reasonable price. The unique geography (surrounded by water) gives them a monopoly over the local customer base.

Dalmatiansoap

At least you all have banana markets there and we get only Bonita monopoly here with Cavendish fruit with 1.60-1.80$/kg.

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hortdoc

I wondered the same thing when I had to pay 5x the price for pineapples in Maui that I pay in Denver.

Nicolas Naranja

The answer to you question probably has something to do with supply and demand at the local level. At the terminal market in LA, bananas sell for $14-15/box. At the terminal in Seattle, bananas sell for $20-22/box.

I noticed in Puerto Rican supermarkets bananas wer $0.79/lb which is 10-20 cents more expensive than they are stateside even though they produce bananas in Puerto Rico.

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john_ny

Same thing here. I can get citrus cheaper, in the supermarket here, than I can in Florida. (Actually, most everything is cheaper here.)

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Nicolas Naranja

The underlying reality to that statement is that Florida ships out most of it's citrus and often what you see in the supermarket is actually from California. I often can't find local lettuce in the supermarket around here even though Palm Beach County has about 8000 acres. Why? We ship it all to New York.

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RobG7aChattTN

I remember talking to a guy who started a coffee company on the island of Java. They sold brewed coffee and had to have the beans shipped in even though they grow coffee on the island of Java. All the beans were shipped out to wholesalers and he had to have them shipped back. In Florida I've often wondered if the high price of citrus is because the demand is less since people can grow their own. Prices are probably higher in L.A. because everything is more expensive in L.A. A pair of Nike's cost only a few bucks to make so they sell them cheaper in poorer countries and jack up the prices in the U.S. because that is what people are willing to pay.

jmoore

Manufacture is only a small part of the total cost of an item. Imagine how expensive these items would be if they weren't made in China or Vietnam. In these countries wages and standards of living are much lower so they can manufacture things more cheaply.

Once made they get exported then the costs start to rack up; transport, storage, import taxes, shop space, power, infrastruture, currency exchange; and then you have the profit margin on top of that this is what makes them seem expensive. They are still much cheaper than they should be.

If these items were sold in countries like China they would seem cheaper to us beause their overheads aren't as expensive and you have favourable exchange rates, but the company say Nike are still making the same pofit margin.

George Webster

I know I found an old thread.


The additional cost in California metropolition areas has to do with the cost of doing business. It begins with The cost of building premits to build the store to begin with. Property taxes, business licence, etc., etc.

These costs require a much greater markup than in other areas.

George

TommyMacLuckie

I saw bananas at Target recently for 19 cents a pound.

trebor

I can find Cavendish here locally retail for .39 cents per pound.. Always available.. In a meat market just 1/2 mile from my house

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PR-Giants

I've lived in Puerto Rico for over 20 years and the highest supermarket price I ever saw was $0.39 lb, but plantains are more expensive.

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Nicolas Naranja

They might have actually been 19 cents per banana. I have seen a few Target supermarkets price by the banana to make you think you are getting a great deal. I think it takes 3 ripe bananas to make a pound.

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