Appliance Prices Can
Vary As Much as 305% At
Different Retailers
A study by the
Ministerio de Economía,
Industria y Comercio (MEIC)
- Economy ministry -
shows that the price of
identical or similar
appliances can vary as
much 305% and that the
interest rate offered by
retailers can be as much
as 117% per year.
The MEIC quoted a case
of an automatic drip 12
cup coffee maker made by
Hess was offered for
¢5.890 at Importadora
Monge in Limóm and a
similar coffee maker
made by Black & Decker
went for ¢23.900 at
Éxito Comercial, in San
Isidro de El General
(Perez Zeledon).
The MEIC, in its report,
quoted other examples
from its findings like
the cost of a Proctor
Silex slow cooker, model
33040, that went for
¢11.455 at the Almacén
Visol, de Heredia, while
the same made and model
went for ¢22.600 at the
Éxito Comercial, in San
Isidro de El General.
The MEIC study was made
between July 6 and 11,
comparing 12 appliances
sold in 49 retail stores
around the country.
The director of the
Apoyo al Consumidor
(consumer support) for
the MEIC, Cynthia
Zapata, added that in
some cases the price of
the same produce may
vary at different stores
of the same retain
chain.
The MEIC said that
Electro Lema, in Limón,
and a number of
Importadora Monge and
Almacén Visol, in
Heredia, had the best
prices.
Mario Acosta, general
manager of Electro Lema
was pleased with the
findings, saying that
his company tries to
keep its margins fair
and offering lower
prices is part of its
marketing plan.
The MEIC noted that the
Éxito Comercial in San
Isidro de El General (Pérez
Zeledón) had some of the
highest prices all
around.
When it comes to
consumer credit, the
MEIC found that buying
appliances on an
installment plan added
the cost significantly.
Interest rates offered
by the retailers ranged
from 41% to 117% per
year, when banks offer
rates at between 17.25%
and 28.25% for purchases
of appliances.
The MECI reccomends that
consumers consider
taking out a personal
loan and making their
purchase in cash rather
than take advantage of
the tempting offers made
by the retailers, which
in some cases offer
credit requiring no
guarantors and an almost
instant response, while
it can take days getting
a bank loan.
The MEIC found that the
retailers with the
highest interest rates
were Ricesa, in Santa
Ana; Hogar Centro, in
Grecia, and the Casa de
los Precios Bajos, in
San to Domingo, Heredia.
Naturally the managers
and owners of the
retailers criticized the
MEIC methodoloy.
The MEIC found that in
some cases retailers did
not comply with
regulations concerning
disclosure.
Retailers offering
credit should indicate
what portion relates to
interest and the portion
to principal in monthly
payments. The common
practice, however, is to
offer the customer the
total amount of the
payment and not indicate
to the consumer the
amount of the interest
being charged.
In addition, retailers
offer a discounted price
for a cash sale and the
full cost if financed.
For example, a
television being offered
for ¢150.000 for cash
will be financed at
¢165.000, the list price
of the product, which in
effect leaves the
customer not only paying
the high finance cost
but a higher price for
the product.
The advice of the MEIC
is shop around and
compare. |
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