01-05-2007, 06:12 AM
Wow, I'm surprised that no one has mentioned the real culprit of high prices, Hawaii's excise tax.
Consider that New Zealand Kiwi seems to average about $1/each here. However, the exact same New Zealand Kiwi, in NE costs 3 for $1. Now since Hawaii in much closer to New Zealand than any NE port, the shipping should be drastically reduced, right? Not exactly. Once the Kiwi arrives in Hawaii, the costs begin to increase. First the NZ ship arrives in honolulu and pays dock fees + excise tax just to dock. Then unloading fee + excise tax, warehouse fee + excise tax, trucking (oahu) fee + excise tax. For the outer islands add interisland shipping + excise tax, more dock fees + excise tax, more unlaoding fees + excise tax, etc. Then at the very end of the line, you get to go to your local grocery, buy your food, and pay yet another excise tax.
As of 5 days ago the excise tax for Oahu increased by a half a percent. You can bet your last dollar that it will increase costs on the outer islands too, since everything goes through Oahu first.
Well, you think, that's why our prices are so high. Not really, the excise tax adds about 18% to your cost. But, you say, your paying way more than that. Of course you are, thats because you do pay it, so they charge it. Earlier someone called it price gouging, actually it's just a free-market economy, charging what the market will bear.
OK, admit it now, if you were selling a product and needed a 100% markup, but your market area was willing to give you a 300% markup... Honestly, what would you sell it for?
Consider that New Zealand Kiwi seems to average about $1/each here. However, the exact same New Zealand Kiwi, in NE costs 3 for $1. Now since Hawaii in much closer to New Zealand than any NE port, the shipping should be drastically reduced, right? Not exactly. Once the Kiwi arrives in Hawaii, the costs begin to increase. First the NZ ship arrives in honolulu and pays dock fees + excise tax just to dock. Then unloading fee + excise tax, warehouse fee + excise tax, trucking (oahu) fee + excise tax. For the outer islands add interisland shipping + excise tax, more dock fees + excise tax, more unlaoding fees + excise tax, etc. Then at the very end of the line, you get to go to your local grocery, buy your food, and pay yet another excise tax.
As of 5 days ago the excise tax for Oahu increased by a half a percent. You can bet your last dollar that it will increase costs on the outer islands too, since everything goes through Oahu first.
Well, you think, that's why our prices are so high. Not really, the excise tax adds about 18% to your cost. But, you say, your paying way more than that. Of course you are, thats because you do pay it, so they charge it. Earlier someone called it price gouging, actually it's just a free-market economy, charging what the market will bear.
OK, admit it now, if you were selling a product and needed a 100% markup, but your market area was willing to give you a 300% markup... Honestly, what would you sell it for?
