Job Discussion Forums

[Black_Beer_Man]

I feel that prices in general in Japan are rather high when compared with other industrialized societies. The exceptions would be subsidized services like the post office and city buses.

Japan has a sizable population, so its buying power would mean cheaper prices, shouldn't it?

I used to think that everything was relative. That because prices were higher than in North America, surely the Japanese must be earning more. However, if you check out my post of hardest working countries, you will see that the average salary in Japan is a bit over $35,000 annually. In the U.S., it's over $50,000.

So, why is a cell phone call 40 yen per minute, a movie 1800 yen and a pint of draft microbrewery beer 800 - 1000 yen? Why is a small bag containing 4 kiwi fruit 400 yen? With Thailand, The Philippines and New Zealand a stone's throw away, why is fruit so expensive?

[Pitarou]

Short answer: prices are high because Japan's culture and politics have fostered a system in which incumbent producers are protected from competition, at the expense of the consumer.

For example, just about any agricultural product that can be produced in Japan has a sky high import tariff that means the home-grown version, no matter how dear, is still cheaper than the imported version. If memory serves, the tax on imported butter is in the region of 800%.

Beer is more complicated, but it was historically taxed as a luxury foreign import.

Some areas, such as mobile phones and *ahem* nuclear power are supposed to be regulated, but the inadequacy of the regulators is beyond a joke. Google "amakudari" if you want to learn more. Or look up the list of the oldest companies in the world, and ask yourself why so many are Japanese.

[rxk22]

More so, as collusion is accepted, and as was said, protectionism exists on most retail categories.

For instance I bought a tempurpedic type pillow in the US for around $60. The same pillow in Japan is well over ¥10,000. As the retailers all collude to sell it at high prices. Been this way since the 50's. As they allowed the electronics companies to sell their goods at outrageous prices in Japan since then

[rtm]

[Rob1209]

I personally don't feel that Japanese prices are high, but then I'm from the UK, not the US.

Obviously some things seem disproportionately expensive, like fruit and beer. So many other things, like rent, eating out, vegetables from my local JA store, haircuts, dry cleaning, toiletries and even trains (for the shorter journeys) are cheaper than the UK. I certainly have a lot more money left over each month for a comparable lifestyle with what I had in the UK, even with a lower salary.
Although some items seem absurdly expensive, the whole package seems pretty reasonable in comparison.

If you're from the US, however...

I don't know, I've never been, but I'm often astonished by how little some of my American friends claim to pay for stuff in the US. Maybe you've just got it too good over there

[rxk22]

[Rooster_2006]

[Black_Beer_Man]

A couple of other things that are really expensive here are Japanese produced CDs and DVDs. CDs are often 2500 ~ 3000 each and DVDs are 4000 - 5000 yen.

I ask myself "Who's buying these?"

The expensive DVDs are having one effect, maintaining business for the video rental industry. I see people streaming into and out of Tsutaya with rental DVDs.

Japan is one of the few countries in the world where DVD rental shops aren't going bankrupt and closing.

Most people blame that on downloading, but DVD rental shops are an outmoded form of movie distribution. Online pay streaming services like Netflix in the U.S. combine the convenience people want with a rental scheme that compensates the artists / movie makers.

[rxk22]

Rooster I am from Montgomery County MD. And yes rent is crazy expensive in the US. I pay less for my Townhouse's mortgage than I would for a studio apartment in the same area.

But in other areas, outside of the ridiculous areas, rents are much more reasonable

[Rooster_2006]

[ssjup81]

I'm from Richmond, Virginia (Henrico County) so Fairfax isn't too far from me. Same situation for me as well. Some food products as well as other things may be low by comparison to the UK or Japan, for instance, but rent is high. It's difficult to live on your own unless you have a roommate. It's sad, but I wasn't able to live on my own until I was 28! I just couldn't afford to move out of my parents' home. I paid them rent (at my insistence). Unfortunately, my first time being able to live away from home was when I got the ALT job a few years back. The fact that I had a low wage (I guess by Japan's standards) and was still able to live in an apartment (about $500 or less a month) whereas back home for that price, I'd probably be in a really bad neighborhood with a hole in the roof with rats running around says a lot.

I'm not sure if the prices have gone down in recent years, but it was always too high for me when I was working back home, doing what I'm doing here for less. No insurance either.

Edit: Wow, just saw those Fairfax prices. I take back what I was saying about Henrico. It's definitely cheaper by comparison!

[Rooster_2006]

[Inflames]

Leather products are ridiculously priced because of the tariffs on imported leather goods (4,000 yen a pair and up, for shoes).

Luxury goods in general are ridiculously priced. I saw a Hugo Boss belt at the department store for more than 20,000 yen - I went online and it was $80.

Phone calls used to be absolutely ridiculous but now are reasonable.

Rents in the Washington area are insanely expensive because there are tons of government workers and contractors there - people are either one or the other (I lived in Fairfax for 3 years). Elsewhere in the country (I lived in Chicago and the suburbs of Philadelphia and rents there are reasonable). If you want to see crazy rents, try NYC. At least you don't need a car like you do in Washington.

For those "most expensive city" surveys basically take a basket of things and compare the prices between places - they don't use substitutes.

[TokyoLiz]

Compared to Vancouver, Canada, suburban Tokyo life is cheaper. Income tax and tax on goods here is considerably cheaper, so I take more of my paycheck home. I rent a 2 storey house for less than I paid for a 1 bedroom apartment on Commercial Drive in Vancouver.

Transit costs more here, but my employer itemizes and pays for my commute, and I can ride on the period ticket on weekends, so I get a break on fares.

I haven't been back to Vancouver since last year, but I would say food prices are about the same. A meal in a restaurant is much more expensive there than here in Tokyo.

[milkman]

I still don't understand why the people here are so against the TPP. God forbid that they actually have to pay reasonable prices for goods to protect an outdated and unnecessary local farming economy. It's like cutting off your nose to spite your face.

I often find it cheaper to import something from Amazon USA than to buy the item locally in Japan. For foodstuffs though, if you know where to go it's rather reasonable. I do my shopping in places like Gyomu Supermarket and other discount places, and know where the best places are for particular items.