Our Price Survey indicates that living on the 'Three-sided Island' of the Baja peninsula isn't the bargain it use to be. Here is the first in our cost
of living comparison articles and what to expect when moving to Baja, straight up...
by Tomas Zyber and Slade Ogeltree
Baja is often referred to as a three sided island because almost everything needs to be trucked or shipped for consumption. These trucks and ships
often return home empty, as produce is about the only export Baja has to offer.
When we first arrived in La Paz, some nearly eight years ago we both were struck by the noticeable cost of living decrease from the areas that we have
both come from, San Diego and San Francisco. I maintained log entries with receipts that, a trip to the grocery for supplies for almost a week came to
just under $70USD. While sitting around bemoaning the fact that virtually the same grocery list now runs me closer to $120, we decided to do a little
semi scientific investigation.
Now, I say semi scientific, because I have done very scientific surveys for marketing firms before and we have some major flaws in our techniques. Our
survey isn't weighted, for the amount of consumption, and it took place over nearly a month, so prices could have fluctuated slightly between
locations. We did not compare exact brands, for the difficulty of finding them over such a broad geographic area. All our prices are from major
supermarkets, Soriana was used here in La Paz. if you shopped around you could probably beat all of these prices in each of the cities. But, forgiving
the pun, we tried to compare apples to apples where we could. In the event of a large price spread in the same area, we averaged the prices, for
example bacon in La Paz ranged from $5.60 for the local brand to $7.99 for Oscar Meyer. All units and prices are converted to English units and US
dollars.
Also read "Days of Living Cheap in Mexico"
We selected a quick handful of items that are more or less staples of life (except for the McDonalds meal, to which none of our respondents admitted
to ever ordering) We excluded beer and spirits, beer has risen dramatically since the "beer wars' ended in Mexico and spirits have a very significant
tax on them in Mexico. A bottle of BV Cabernet was available for $11.00 in San Diego could not be had for less than double that in Baja. However, if
you prefer Argentine or Chilean wines, there is no duty.
Like in the US, the price leader may vary from month to month but Soriana has the largest number of stores nation wide and most directly compared to
our American supermarket mentality. They don't carry as many 'gringo' brands as some of the other markets like C.C.C., but they are located all across
Baja from TJ to Cabo.
In coming weeks we will look at some of the other factor, like rent, home purchases and dining out. There are strange differences as well. Anything
made in China is more expensive in Mexico, as there is a large import tax on items made in China, India and a few other oriental locations.
Tupperware, for example, becomes a treasured item when purchased in Mexico at two to five times the price paid in the states.
Quality of available items can be disconcerting too. Baja residents are excited about the arrival of Walmart, looking for an outlet for increased
quality with low prices. A sad thought, considering Walmart is near the bottom of the quality ladder in the USA.
Quality can be hard to find and usually not found under store brand labels. I recently purchased some store brand size 8-12 socks. The foot may indeed
have been able to accommodate size 12, but I do believe you would have had a hard time getting the elastic part over the foot of a 6 year old. I used
them to wax the boat.
As a pet owner I will add that dog food, such as Purina, costs as much here as premium dog food in the US. Veterinary care, although not as
sophisticated as the states, is a fraction of the cost of my last US residence, San Diego. Veterinary medications like 'Frontline' are cheaper in the
US, probably due to competition.
We did experience one boon this summer, when there was the fabricated scare of salmonella in the Roma tomatoes from Mexico in the US, we had an
abundance of premium quality ripe tomatoes in our markets. The price dropped to about $0.29/ lb!
We will get into building products in a subsequent article. But, it will suffice to say, if you have a sheet of 4x8 3/4" plywood, you make sure it is
locked up at night.
So, here is how some major cities in the US stack up against gas and grocery prices in Baja. The highest price for each item is in red the lowest
price in blue. (Survey between Aug 1 and Sept 1, 2008.
Item
1 Dozen Eggs
La Paz $2.20
San Diego $1.99
Phoenix $1.79
Boston $1.19
Philadelphia $1.49
1lb Lean Hamburger
La Paz $3.89
San Diego $4.49
Phoenix $4.99
Boston $3.29
Philadelphia $2.59
1 Gallon Whole Milk
La Paz $4.60
San Diego $3.99
Phoenix $3.59
Boston $2.99
Philadelphia $3.91
Loaf of White Bread
La Paz $2.50
San Diego $2.29
Phoenix $2.19
Boston $1.79
Philadelphia $0.95
Whole Frying Chicken
La Paz $1.29/lb
San Diego $1.59/lb
Phoenix $1.69/lb
Boston $1.19/lb
Philadelphia $1.49/lb
1lb Cheddar Cheese
La Paz $7.27/lb
San Diego $7.49/lb
Phoenix $5.99
Boston $3.89
Philadelphia $4.29
1 Pound Bacon
La Paz $6.89/lb
San Diego $3.75
Phoenix $2.99
Boston $2.89
Philadelphia $2.89
1 Head Lettuce
La Paz $1.29ea
San Diego $1.79ea
Phoenix $0.99
Boston $0.99
Philadelphia $1.89
1lb Red Tomatoes
La Paz $0.79/lb
San Diego $2.99/lb
Phoenix $1.99
Boston $1.69
Philadelphia $1.99
Box Kraft Mac & Cheese
La Paz $1.30
San Diego $1.37
Phoenix $1.49
Boston $1.00
Philadelphia $1.09
Bath Sized Bar Soap
La Paz $0.79
San Diego $0.48
Phoenix $0.64
Boston $0.49
Philadelphia $0.69
1 gal Unleaded Gas
La Paz $2.53/gal
San Diego $4.35/gal
Phoenix $3.89/gal
Boston $3.93/gal
Philadelphia $3.89/gal
McD's 1/4 Pounder Meal
La Paz $7.89
San Diego $6.89
Phoenix $5.28
Boston $5.99
Philadelphia $5.99
Gas & Grocery total
La Paz $43.23
San Diego $43.46
Phoenix $37.51
Boston $31.32
Philadelphia $33.15
It was no surprise that, of our selected cities that San Diego had the highest prices on just about everything, with the second highest cost of living
in the United States. What was a bit of a stunner was the fact that La Paz placed second and if it wasn't for our low price for gasoline would have
won.(lost?) Salem, Massachusettes, some 60 miles north of Boston was the low price winner.
Now, we will be the first to admit that adjustments in your shopping habits can alter this outcome.Meats are cheaper and better for you as hormones
and antibiotics are not allowed in Mexican beef. Chicken has recently risen by about 80% since spring, hopefully this is a temporary thing and prices
will fall with the temperatures in mainland Mexico. Fresh produce is cheaper here, as a good amount of the tomatoes, lettuce and broccoli are grown
within a few hundred miles of most locations in Baja. These supermarket prices can probably be beat at local farmers markets.
The biggest difference was the cost of gasoline. Mexico subsidizes fuel prices and is a petroleum producer, at least for the immediate future, but
this will begin phasing out in January and gas prices have already risen a few cents since this survey. But retirees, who make up the bulk of those
moving to Baja, do not have a commute and the lifestyle here in Baja has reduced my yearly mileage from 28K./year in San Diego to just over 11K miles
last year.
Medical and dental care does still make Mexico a bargain. The correct hospitals and doctors offer a very acceptable level of medical care. This is
significant line item for retirees as you can almost estimate costs to be 1/10th that of the US. However, if they cut off the wrong leg call a
carpenter rather than a lawyer, because mal practice is non-existant.
Prescription medications used to be much cheaper in Mexico, again because of the limited liability awards. But prices have risen to be much closer to
the US norm. There have also been significant cases of medical forgery/potency in brands like Viagra, Cialis, antibiotics and some of the costly high
blood pressure medication.
We hope you find this information useful in your plans to visit or relocate to Baja. We will cover some of the other staples of life in the near
future including car costs, clothing and building. Until then, Happy Shopping!
We would like to thank all of our price survey participants from coast to coast for their help and cooperation. |
Spent last winter at a neat place in Mulege for only $450/month; no pool, no golf,
just real good neighbors.
