What are your prices?

[Seattle]

How much is that in $? And how much do other products cost you? For example, bread costs us about $0.50 per half kilo, boneless pork meat $4-5 per kilo, chicken $2-3 per kg, beef $7-10 per kg, new potatoes $0.4-0.50 per kg, milk $0.5-1.20 per liter, beer from the supermarket $1.3-2 per 1.5 liters, hard cheese from $8 per kg.

Eggs are all over the place here depending if they are free range or not but just looking at my local grocery store app (Safeway) I see 12 eggs for $2.79, lean hamburger $10.50 lb, skinless chicken breast $5 lb one Russet potato $.85 a loaf of bread anywhere from $2.50 to $5.00

Gas is about $1.25 liter or $4.75 gal.

 

[Seattle]

And the prices for services? For example, an unlimited tariff on a mobile phone can be connected from $8 per month. There will be a package of minutes and unlimited Internet. Changing a car to winter or, conversely, summer tires will cost an average of $10 for 4 wheels.

I have an unlimited internet phone deal for $20 month for 12 months and then it goes to $25 a month. I don't know how much it would cost to change from summer to winter tires. We don't do that here. The minimum wage here is about $22/hr.

 

[Sarkus]

Not sure fuel? Pre COVID you could pick up 6 eggs for about 60 or 70p, a bit more for free range.
Now it's about £2 for 6.

£1.50 for 6 where I am for free-range. Pre-Covid you were probably looking around the £1.20, if memory serves.

 

[Sarkus]

Eggs are all over the place here depending if they are free range or not but just looking at my local grocery store app (Safeway) I see 12 eggs for $2.79, lean hamburger $10.50 lb, skinless chicken breast $5 lb one Russet potato $.85 a loaf of bread anywhere from $2.50 to $5.00

Gas is about $1.25 liter or $4.75 gal.

In the UK - or the part I'm from...
Lean beaf steak mince here is about £10/kg - so that's about £4.50/lb.
Skinless chicken breast - about £7.50/kg - so that's about £3.40
Both from supermarket rather than local butcher, so quality may not be the best.

Bread is upward from about £1 - but for a reasonable loaf expect about £1.60.

Petrol currently about £1.40/ltr

 

[Seattle]

In the UK - or the part I'm from...
Lean beaf steak mince here is about £10/kg - so that's about £4.50/lb.
Skinless chicken breast - about £7.50/kg - so that's about £3.40
Both from supermarket rather than local butcher, so quality may not be the best.

Bread is upward from about £1 - but for a reasonable loaf expect about £1.60.

Petrol currently about £1.40/ltr

OK so hamburger $6.10
chicken breast $4.61
bread $1.30
gas $1.90 liter or $7.18 gal

Just a note on my gas, it's a lot higher in California and Washington. It's about $3.20 in much of the country. I don't know how much food prices vary.

Your food prices look similar to ours before Covid.

 

[Olga]

OK so hamburger $6.10
chicken breast $4.61
bread $1.30
gas $1.90 liter or $7.18 gal

Just a note on my gas, it's a lot higher in California and Washington. It's about $3.20 in much of the country. I don't know how much food prices vary.

Your food prices look similar to ours before Covid.

Наши цены до пандемии были в несколько раз ниже. Как вы думаете, чем вызвана такая инфляция во всём мире?

 

[Olga]

In the UK - or the part I'm from...
Lean beaf steak mince here is about £10/kg - so that's about £4.50/lb.
Skinless chicken breast - about £7.50/kg - so that's about £3.40
Both from supermarket rather than local butcher, so quality may not be the best.

Bread is upward from about £1 - but for a reasonable loaf expect about £1.60.

Petrol currently about £1.40/ltr

Почему так дорого? Цены на сырьё примерно одинаковы по всему миру. Неужели зарплаты имеют такое значение, что цены разнятся в 5 -10 раз?

 

[Sarkus]

Yes, wages are a significant factor in food costs. Land also costs more in the UK, as does energy, as does animal feed.
But this does not result in our price being 5-10x the price in Russia, and in some costs we are broadly similar (milk costs me about £0.60, and our bread is 800g a loaf).

Regarding wages, the UK operates a minimum wage of c.£12/hr. That's significantly higher than what i undersatand the case to be in Russia, right? Where it's about £1-£2/hr?

 

[Olga]

Yes, wages are a significant factor in food costs. Land also costs more in the UK, as does energy, as does animal feed.
But this does not result in our price being 5-10x the price in Russia, and in some costs we are broadly similar (milk costs me about £0.60, and our bread is 800g a loaf).

Regarding wages, the UK operates a minimum wage of c.£12/hr. That's significantly higher than what i undersatand the case to be in Russia, right? Where it's about £1-£2/hr?

Я вам сейчас расскажу то, что вам никто больше не расскажет. Официальная зарплата в России никогда не была основным доходом для большинства работающих. У нас ещё с царских времён повелось "кормиться с места", было такое понятие, и во времена СССР оно только укрепилось. Это так называемые "шабашки". Сейчас объясню что это такое. Допустим, вы работаете на заводе, вытачиваете какие-нибудь подшипники. Ваша официальная зарплата 85 000 рублей. И половину дня вы вытачиваете подшипники для завода, а вторую половину дня вы точите подшипники, которые идут "налево", т.е. мимо заводской проходной. Долю с этого имеют все: мастера цехов, охрана, директор. Прибыль недополучают только собственники предприятий. И так повсеместно. Воруют на полях, воруют на заводах, на фабриках, на стройках, в столовых, везде, где можно и нельзя. Есть советский анекдот: мужик устроился на завод, который якобы производит велосипеды, и жалуется приятелю: "не пойму, что за фигня - натаскал с работы запчастей, хотел собрать дома велосипед, но как не стараюсь, почему то всё равно автомат получается".
Вы смотрите, и думаете - как мало получает медсестра, всего 3 000 рублей за смену. Но эта же медсестра берёт с больных минимум 500 рублей за укол, и делает их в день десятками. И все платят, если не хотят чтобы иголка случайно не осталась в вашей заднице. Вот эти неофициальные доходы называются "шабашками", и ни в какую официальную статистику они никогда не входили.

 

[Sarkus]

Я вам сейчас расскажу то, что вам никто больше не расскажет. Официальная зарплата в России никогда не была основным доходом для большинства работающих. У нас ещё с царских времён повелось "кормиться с места", было такое понятие, и во времена СССР оно только укрепилось. Это так называемые "шабашки". Сейчас объясню что это такое. Допустим, вы работаете на заводе, вытачиваете какие-нибудь подшипники. Ваша официальная зарплата 85 000 рублей. И половину дня вы вытачиваете подшипники для завода, а вторую половину дня вы точите подшипники, которые идут "налево", т.е. мимо заводской проходной. Долю с этого имеют все: мастера цехов, охрана, директор. Прибыль недополучают только собственники предприятий. И так повсеместно. Воруют на полях, воруют на заводах, на фабриках, на стройках, в столовых, везде, где можно и нельзя. Есть советский анекдот: мужик устроился на завод, который якобы производит велосипеды, и жалуется приятелю: "не пойму, что за фигня - натаскал с работы запчастей, хотел собрать дома велосипед, но как не стараюсь, почему то всё равно автомат получается".
Вы смотрите, и думаете - как мало получает медсестра, всего 3 000 рублей за смену. Но эта же медсестра берёт с больных минимум 500 рублей за укол, и делает их в день десятками. И все платят, если не хотят чтобы иголка случайно не осталась в вашей заднице. Вот эти неофициальные доходы называются "шабашками", и ни в какую официальную статистику они никогда не входили.

Frankly, this is irrelevant to the cost of goods in the shops. The cost of goods in the shops will be based on what the producers pay for the raw materials and for the labour. If the labour costs are only £1.50/hr, they'll be able to produce goods cheaper than someone whose labour costs are £15/hour (all other things being equal). It makes no difference to the costs of those goods if those labourers earning £1.50/hr to produce those items earn additional money elsewhere.

 

[Olga]

Frankly, this is irrelevant to the cost of goods in the shops. The cost of goods in the shops will be based on what the producers pay for the raw materials and for the labour. If the labour costs are only £1.50/hr, they'll be able to produce goods cheaper than someone whose labour costs are £15/hour (all other things being equal). It makes no difference to the costs of those goods if those labourers earning £1.50/hr to produce those items earn additional money elsewhere.

Ну хорошо, значит разница стоимости товаров и услуг в 10 раз обусловлена только стоимостью рабочей силы? Т.е. , если допустим у нас стоимость сырья и прочих составляющих будет например 1$, и стоимость зарплаты будет 1$, итого общая стоимость товара будет составлять 2$, то у вас стоимость сырья будет составлять 1$, а стоимость зарплаты и прочих составляющих будет 18$?

 

[Sarkus]

Ну хорошо, значит разница стоимости товаров и услуг в 10 раз обусловлена только стоимостью рабочей силы? Т.е. , если допустим у нас стоимость сырья и прочих составляющих будет например 1$, и стоимость зарплаты будет 1$, итого общая стоимость товара будет составлять 2$, то у вас стоимость сырья будет составлять 1$, а стоимость зарплаты и прочих составляющих будет 18$?

??? Where on earth are you getting the 10-times idea from??
You gave the following: "For example, bread costs us about $0.50 per half kilo, boneless pork meat $4-5 per kilo, chicken $2-3 per kg, beef $7-10 per kg, new potatoes $0.4-0.50 per kg, milk $0.5-1.20 per liter, beer from the supermarket $1.3-2 per 1.5 liters, hard cheese from $8 per kg. "

Per my numbers above:
Bread in UK c.£1-£1.60 for 800g loaf - that's 0.8kg - so roughly 2x to 3x the price in Russia.
Chicken - £7.50 per kilo - so that's c.4x.
Beef - £10 per kilo - so that's c.2x
Milk is about the same price - maybe 50% more expensive.
Beer - that depends on what you want - you can pick up for around £2/litre, but depends on what you like and where it has to come from - so that's only maybe 1.5x the price.
Cheese is also maybe 1.5x the price.

So where are you getting the idea that prices are 10x ???


Now, maybe there are some services that are 10x the price, but they would likely be labour intensive - since our labour can cost 10x as much for the low-end jobs. But have you actually exampled any that are 10x the price???

 

[TheVat]

The bulk of production costs for most companies is labor and overhead. Materials are usually much less, unless your production involves rare items. (possibly making a catalytic converter would have a higher material cost due to the use of rare metal)

 

[Olga]

??? Where on earth are you getting the 10-times idea from??
You gave the following: "For example, bread costs us about $0.50 per half kilo, boneless pork meat $4-5 per kilo, chicken $2-3 per kg, beef $7-10 per kg, new potatoes $0.4-0.50 per kg, milk $0.5-1.20 per liter, beer from the supermarket $1.3-2 per 1.5 liters, hard cheese from $8 per kg. "

Per my numbers above:
Bread in UK c.£1-£1.60 for 800g loaf - that's 0.8kg - so roughly 2x to 3x the price in Russia.
Chicken - £7.50 per kilo - so that's c.4x.
Beef - £10 per kilo - so that's c.2x
Milk is about the same price - maybe 50% more expensive.
Beer - that depends on what you want - you can pick up for around £2/litre, but depends on what you like and where it has to come from - so that's only maybe 1.5x the price.
Cheese is also maybe 1.5x the price.

So where are you getting the idea that prices are 10x ???


Now, maybe there are some services that are 10x the price, but they would likely be labour intensive - since our labour can cost 10x as much for the low-end jobs. But have you actually exampled any that are 10x the price???

Ну, например яйца у нас стоят меньше, чем 0,5 $ за десяток. Разве это не в 10 раз меньше?

 

[Olga]

The bulk of production costs for most companies is labor and overhead. Materials are usually much less, unless your production involves rare items. (possibly making a catalytic converter would have a higher material cost due to the use of rare metal)

Какую долю прибыли обычно закладывают ваши компании в стоимость продукции?

 

[Sarkus]

Ну, например яйца у нас стоят меньше, чем 0,5 $ за десяток. Разве это не в 10 раз меньше?

No. In my local supermarket you can get 15 basic eggs for £2.15.
My local ALDI has sometimes even done 6 free-range for £1.
This puts prices at about x3. Not x10.

 

[Olga]

No. In my local supermarket you can get 15 basic eggs for £2.15.
My local ALDI has sometimes even done 6 free-range for £1.
This puts prices at about x3. Not x10.

Пин сказал, что 6 яиц у вас стоит 2 фунта стерлингов, я исходила из этого. И кроме того, у нас сейчас крупные яйца 1 сорта стоят меньше 40 рублей, а второй сорт и того меньше. Возможно, вы смотрели мелкие яйца 2 сорта?

 

[TheVat]

What percentage of profit do your companies typically include in the cost of their products?

Profit varies a lot between different types of companies. And if the product is a retail item, then there is also the retail markup, which can be as much as fifty percent.

Factory makes a widget, which is sold to a wholesale distributor for ten dollars. All production costs (including management ) were eight dollars, so a shareholder might get a two dollar dividend per widget. Then the retailer puts it on the shelf with a twenty dollar price tag, and they pay their labor and store overhead from the ten dollar gross profit. Whatever is left is net profit for the store owners. This is oversimplified but you get the idea.

 

[Olga]

Profit varies a lot between different types of companies. And if the product is a retail item, then there is also the retail markup, which can be as much as fifty percent.

Factory makes a widget, which is sold to a wholesale distributor for ten dollars. All production costs (including management ) were eight dollars, so a shareholder might get a two dollar dividend per widget. Then the retailer puts it on the shelf with a twenty dollar price tag, and they pay their labor and store overhead from the ten dollar gross profit. Whatever is left is net profit for the store owners. This is oversimplified but you get the idea.

Я понимаю это всё, Теват. Чистая прибыль - это те деньги, которые теоретически должны идти на развитие предприятий, и рост экономики в целом? Ну, не все, конечно, но значительная их часть.

 

[TheVat]

Addendum to above - I have been told by a retail expert that the largest profit margin is to be found in a coffeehouse. These are old figures, but he said that it costs around 7¢ to make a cup of coffee, which can then be sold to someone for US$1.50 to $4.00. Baristas are poorly paid, the equipment is inexpensive to maintain, so labor/overhead is fairly low. This is why there are so many coffeehouses everywhere. (One of my children ended up in debt, learned a hard life lesson, by running up her card with friends when they'd hang out in coffeehouses)