Prices are going UP!

nickkieswetter

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Aug 6, 2003
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Hi Guys,

There have been a few posts on here recently suggesting that we are seeing prices going down, well here is an example of them going up!

I was just in Casa Nelson Shooting world, I wanted to buy something that had a price label on for $105.00US I had seen the same item there about 3 months ago at the same price, so I took the item to the cash desk with my dollars in hand to be told that they no longer take dollars and the prices have all been changed to PESO'S!! ok I say no problem whats that then,a little over three thousand peso's? NO SIR IT'S 5,775 Pesos! Oh why is that? Because thats the price of it! Ok bye.
So I left.

This got me thinking, why would a store selling something imported that was fit to be sold with sufficient margin three months ago is now almost doubled in price?

The answer, well amongst other things like taxes and salaries these guys want to make the SAME IN PESOS!! as before! yes thats the only thing that I could think was reasonable, they were making x amount of pesos when the exchange rate was at 55 to one and now it has dropped they want to make the dollars back to repurchase the stock and still make the same physical amount in PESOS! and why wouldnt they, the cost of the things that they buy daily havent fallen either!

If this is the same for all business's and I should imagine it cant be too different then I am not going to be party to it, I suggest that if anyone else here can cite instances like this they post them and we boycott the stores or restaurants whatever!

The problem is once a business is used to making a certain profit it wont let it fall example business purchases an imported item for 200 US at a rate of 50 to one so 10,000 peso's it sells at 250 US or 12500 Peso's when the rate is 50 to one, the store profits 2500 Pesos or 50 US. Now the same store buys same item for same 200 US at 30 to one or 6000 Pesos but sells at 285 US or 8500 Pesos because it now likes making 2500 pesos per item sold. This is a good example and is only mildly annoying but instances like Casa Nelson Shooting World are totaly abhorrent!

Nick
 

liam1

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Jun 9, 2004
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it's all good for the future! how? i don't know, but some members on this forum do.
 

Snuffy

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May 3, 2002
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Unfortunately...it is not going to change...

Even if a few people that see your message boycott...it is not going to do any good. These people know their business and know what they can get away with. Sorry to hear you will not be able to purchase that item at that location. Perhaps you can find it somewhere else. But, nothing is going to change.

Just have to roll with the punches. Best of luck.
 

Gringo

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Jan 1, 2002
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You think so?

I went to Pizza Hut today to enquire about a Birthday party for my Son and 30 friends. I asked for the price list and the girl brought it over to me, as she passed me the prices she wrote down that the prices were 500 Pesos more.
I told her that the Peso has droped 30% since this was published, She just shrugged and said take it or leave it......
I said thanks but I will leave it!

Gringo
 

nickkieswetter

New member
Aug 6, 2003
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Thanks Gringo,

Yet another place to miss out on!

I know that by boycoting places will not have an effect on their prices most probably, however I think that it is useful for hard done to and poor expats to know where they are getting a bad deal.

Conversley if anyone knows of places where there are good deals to be had they could be posted here as well

Nick
 

MrMike

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Mar 2, 2003
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Snuffy said:
Even if a few people that see your message boycott...it is not going to do any good. These people know their business and know what they can get away with. Sorry to hear you will not be able to purchase that item at that location. Perhaps you can find it somewhere else. But, nothing is going to change.

Just have to roll with the punches. Best of luck.

The good news is that businesses that do this kind of thing are leaving the door wide open to aggressive competition that understands customer perceptions and is willing to make a little bit lower margin in order to keep inventory rotating and also to put the hurtin' on businesses like this that waste people's time.
 

mike775103

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Aug 25, 2004
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The same thing happened in the US

..back in the late 70's early 80's, when the Hunt brothers tried to corner the silver market. The price of silver, silver futures, silver mining shares, etc all went through the roof. The price of silverware place settings, which I was in the market for at that time, went up right along with the price of silver. Then, when the Hunts lost billions, and the price of silver went back to where it had been, guess what. The price of silverware stayed the same. The silverware companies found out that enough people would pay the higher price. They could increase profits selling less product. As far as I know, the prices have never come down. So I wouldn't look for a quick readjustment of prices on imported goods in the DR.

However, I do recommend doing what I did. Don't buy the stuff at the inflated prices, unless it is unavoidable. I still haven't bought any silverware, and don't feel the loss.
 

Spirit7

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Aug 26, 2004
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What goes up doesn't necessarily come down in the DR.

Prices are the same or even going up, yes! A simple thing like a small bottle of water has gone from 10 to 12 pesos, a 20% increase when the dollar goes down 35-40% from the highest rate. McDonald's, Burger King, etc., are
holding their prices at 2-1/2 times what they were prior to the peso devaluation also. So it's time to avoid all these businesses that are not making the downward adjustment.

Avoid any unnecessary purchases for the time being and until things are evened out.
 

Snuffy

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May 3, 2002
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Avoid Unnecessary Purchases...

I agree and that is what I have been doing. But as far as boycotting goes. It is not going to change prices. Although it may help to post these situations here.

I just believe that people have come back to the DR by the thousands and the money has come back also. That drives up demand. These businesses can get the price they are asking so they are not going to lower prices.

I am familiar with Santiago and Caberete and I can say that both those places are seeing a building boom...perhaps a small one...but there is a lot of building going on. Don't know about the rest of the country.

So what do you do? Just have to try and find the best price. I got my internet bill today and with the dollar at 29 to 1...I am paying about $92 for internet and local phone service. I may bite the bullet and cancel the internet service. I doubt they will adjust the rate down now that the dollar has fallen against the peso. Again, they can get that price.

Best of luck to all. It is frustrating. You invest so much of your life in a place and then comes a time when you can no longer afford to live there.
 

KateP

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May 28, 2004
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Spirit7 said:
Prices are the same or even going up, yes! A simple thing like a small bottle of water has gone from 10 to 12 pesos, a 20% increase when the dollar goes down 35-40% from the highest rate. McDonald's, Burger King, etc., are
holding their prices at 2-1/2 times what they were prior to the peso devaluation also. So it's time to avoid all these businesses that are not making the downward adjustment.

Avoid any unnecessary purchases for the time being and until things are evened out.

Just as a side note, I went to McDonalds on Friday and they're dropping their prices some. Not much but 10-20 pesos on some things... A chicken sandwich combo for example is at RD$120 and the sundaes at RD$40...
 

Lambada

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Mar 4, 2004
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Gringo said:
I went to Pizza Hut today to enquire about a Birthday party for my Son and 30 friends. I asked for the price list and the girl brought it over to me, as she passed me the prices she wrote down that the prices were 500 Pesos more.
I told her that the Peso has droped 30% since this was published, She just shrugged and said take it or leave it......
I said thanks but I will leave it!

Gringo

Could I recommend you check the prices at International Pizzeria on the roundabout opposite old baseball stadium for your son's birthday party? It didn't seem exorbitant to me last month, & certainly no 'hidden' increases. Plus they have swings & slides etc for the kids & lots of space. Enzo may be 'negotiable' with as you are planning a large group. ;)
 

juanita

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Apr 22, 2004
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Prices are going down!!

From El Nacional

http://69.59.165.79/(pnb3gbu0i0fxgy45birnoyjt)/app/article.aspx?id=19122

:nervous: Even good old Presidente went down 5 pesos!!
 

Chris

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Oct 21, 2002
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Spirit7 said:
Prices are the same or even going up, yes! A simple thing like a small bottle of water has gone from 10 to 12 pesos, a 20% increase when the dollar goes down 35-40% from the highest rate. McDonald's, Burger King, etc., are
holding their prices at 2-1/2 times what they were prior to the peso devaluation also. So it's time to avoid all these businesses that are not making the downward adjustment.

Avoid any unnecessary purchases for the time being and until things are evened out.

You guys eat at McDonalds and Burger King? No way! The fried/grilled chicken and platanos and all the trimmings with cold Presidente in front of the First Ferreteria in Cabarete on the right (as you come from Sosua) is just the best late on a Monday night! Way better than McDonalds and Burger King. Thanks to Peter & Alex and Paul Thate who showed us this one.... I think it was the lowest food bill (although the restaurant was in the road - the cars went around us) that we ever had in the DR..... and some of the best food! and good company.
 

bcmike

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Jan 29, 2004
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good news

On the plus side..it was announced that beer prices have dropped :surprised
 

Gringo

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Jan 1, 2002
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Thank you Lambada.....

Lambada said:
Could I recommend you check the prices at International Pizzeria on the roundabout opposite old baseball stadium for your son's birthday party? It didn't seem exorbitant to me last month, & certainly no 'hidden' increases. Plus they have swings & slides etc for the kids & lots of space. Enzo may be 'negotiable' with as you are planning a large group. ;)

I will give that place a try, As far as I know he is the oldest Pizza Parlor in Pto.Pta.

Gringo
 

wayne

Member
Dec 25, 2003
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Gringo said:
I will give that place a try, As far as I know he is the oldest Pizza Parlor in Pto.Pta.

Gringo

Is that place still there, i remember eating there in 1988 on our first trip to the DR. Brings back a lot of memories.
 

BushBaby

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wayne said:
Is that place still there, i remember eating there in 1988 on our first trip to the DR. Brings back a lot of memories.

Indeed it is still there!! Enso has put a few pounds on over the years but he is still the lovial & convivial host he always was back in those "Pioneering"days!! We first ate there when here on holiday in 1991. We went back when we came to live here in November of 1992 because (with his 2 for one deal before 7.30 at night) he was the best value around!! early '93 saw us eating there quite a bit as I was teaching his staff some English & German in exchange for meals just to make ends meet!!

We went back for my 60th birthday celebration a few weeks ago - VERY nostalgic night it turned out to be too!! Give Enso my best regards Gringo ~ Grahame.
 

DominicanScotty

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Jun 12, 2004
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Good ole Rockys in Sosua

I was in the Dominican Republic last week and will be returning in two weeks. Marco at Rockys has been holding his prices down, he is doing the right thing and I think that everyone should give this man business. Not only is he a DR1 member he has a great place with excellent prices!
 

Danny W

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Mar 1, 2003
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Lambada said:
Could I recommend you check the prices at International Pizzeria on the roundabout opposite old baseball stadium for your son's birthday party? It didn't seem exorbitant to me last month, & certainly no 'hidden' increases. Plus they have swings & slides etc for the kids & lots of space. Enzo may be 'negotiable' with as you are planning a large group. ;)

Are you talking about the roundabout near the Burger King, Brugal factory and courthouse that you would take heading to Santiago from POP? Sorry for my ignorance, but it sounds like the perfect place to bring the crew when we go shopping in POP. At any rate, coming from Sosua, where is it? - Thanks - D
 

Lambada

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Danny W said:
Are you talking about the roundabout near the Burger King, Brugal factory and courthouse that you would take heading to Santiago from POP? Sorry for my ignorance, but it sounds like the perfect place to bring the crew when we go shopping in POP. At any rate, coming from Sosua, where is it? - Thanks - D

Yes, past Playa Dorada on your right, then past Brugal bottling plant on your right, come up to big roundabout, Court building in front of you on right. International Pizzeria is on left of roundabout, set back from road i.e you will need to continue round roundabout as if you are coming back on yourself in order to drive in to parking area next door where frequently you see Safari trucks. Hope this is clear, Danny W. If not PM me & I'll try again!