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Cajones
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Comparative Cost of Living in Baja Part 2: Grocery Price Sampling
http://www.bajainsider.com/baja-life/general-information/com...
| Quote: | 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. |
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vandenberg
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I'm packing and moving to Boston.
Think there is room for some Nopolo lowlife.
[Edited on 10-7-2008 by vandenberg]
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Hook
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I think the heating oil costs in the winter will eliminate Boston from any overall cost of living comparison.
My wife is keeping a spreadsheet on items we purchase over here in Sonora. It covers our basic items purchased at Sorianas, Ley, Super Val and a small
local competitor: Santa Rosa market.
In a nutshell, it pays to shop around at all these sources. Across our list of items, none of the places was consistently cheaper on all items. Being
retired, we can take advantage of this timewise and they are fairly close together. But, as the survey indicates, Mexico isn't the bargain it once
was. But there are some items we consider staples that we can still get deals on. Shrimp and fish, beef, and vegetables from the farmer's markets are
significantly under the everyday price of the same items in the States.
Bottom line: what continues to make Mexico so affordable is the cost of housing; whether purchasing or renting. Fuel is also a bargain, for the time
being.
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Cajones
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| Quote: | Originally posted by Hook
Fuel is also a bargain, for the time being. |
True, but that is a short-lived benefit. Mexico is moving the price of gasoline to parity with the US. Gasoline costs should be the same by early
2009.
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oxxo
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Here is what I posted on another thread a week ago.
| Quote: |
Okay, rather than guesswork, here are the facts.
We went to Costco at lunch today for our weekly hotdog (man cannot live by tacos alone, but it wouldn't be bad to try). I didn't have the grocery
list that was published on Baja Insider so I did it from memory. I remembered 6 out of the 11 grocery items, so not too bad.
Here are the prices today 10/01/08 at Costco for the following items (with prices in La Paz in parenthesis):
eggs - 1.63/doz. (2.20)
hamburger - 2.83/lb (3.89)
milk - 3.68/gal (4.60)
bread - 1.64/loaf (2.50)
bacon - 2.65/lb (6.89)
lettuce - .92/head (1.29)
If you total these 6 items up, I would pay 13.35 at Costco in San Lucas and 21.37 at Soriana in La Paz. That equals 38% less than La Paz. I was
being too conservative in my previous estimates about how much we save.
Now if I take those 6 items and compare them to the US locations in the article, Cabo is approximately equal to the lowest priced city in the US,
Boston. So I get Boston's low prices without having to put up with a Boston winter (yes I did spend part of a winter there).
I my opinion, La Paz is a much more expensive city for daily expenses than Los Cabos. However, that could change soon because there is a WalMart
under construction and I hear rumors about a Costco location in La Paz.
Actually, I think we live for much less than 15% compared to SoCal, but I would really to have to spend some time to prove it. I'm just happy here
with a better quality of life to boot! |
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DianaT
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You mean they have cheddar cheese and whole frying chickens in La Paz? Dang, may have to move. 
Food items are even more expensive out where we are---but we sure do like the cost of the electricty and water. 
Diane
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Hook
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Registered: 3-13-2004
Location: Sonora
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| Quote: | Originally posted by Cajones
| Quote: | Originally posted by Hook
Fuel is also a bargain, for the time being. |
True, but that is a short-lived benefit. Mexico is moving the price of gasoline to parity with the US. Gasoline costs should be the same by early
2009. |
Hence, the "for the time being" qualifier. I will worry about it more if diesel follows. Not sure what's going on there.
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stanburn
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If you try to purchase the same products as you would buy NOB, then things cost more in Mexico. If you eat like the locals then they are less. Try
getting a kilo of fresh tortillas NOB for 12 pesos!
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rhintransit
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Posts: 1588
Registered: 9-4-2006
Location: Loreto
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how fascinating to have actual comparisons. the research, does back up my informal observations. I lived many years in mainland Mexico, and now
going on four in Baja...shopping 'center' Loreto. my USA home is in the Phoenix area, which correlates nicely with the 'studies.'
as far as groceries and home needs/improvement, etc, excluding gasoline, I can live far cheaper in Phoenix. and I could live cheaper in a larger BCS
city (La Paz prices look great in comparison to Loreto) I liked the grocery lists. however, they do not/cannot include the amazing things called
"sales" that Loreto has yet to discover. for example, cheddar cheese, in the survey, Phoenix 3.99/pound is regularly on sale for 2/pound. Loreto,
when and if, pay whatever they ask. or go without. the ability to shop for bargains, the signifantly higher quality at all price levels, the
staggering variety and above all the regular availablity of items always amaze me on my semi-annual visits 'home' to the USA. (US) Americans just
do not know how good they have it in the CONSUMER area.
housing...well. that's another topic and varies greatly from individual to individual. ulitities...ditto. (I don't have access to, and therefore
don't use, any in Mexico) gas...won't address
bottom line for me...I could live much cheaper in Phoenix, USA, the land of my birth. I choose to live in (Baja...though I may head to the mainland
soon for other reasons than money), Mexico, the country of my heart.
thanks for the research.
reality\'s never been of much use out here...
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BajaSerg
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We bring all are grocery from the state side, were weekenders, we fine that its cheaper, we do by Avocados in Rosarito (now theres a deal!) need to
have are Guacamole fix LOL
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makana.gabriel
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Location: Honolulu
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I know this has nothing to do with Baja but have to share anyway. Just got back from Honolulu and at Costco there, the 18 pack of eggs is over $4.50,
the 2 gallon pack of milk is over $7.50, and the big bag of Tyson boneless/skinless thighs that cost $12.79 here is $20.89
What a bargain it is living in Cabo!!!!!
FAITH sees the invisible, believes the incredible, and receives the impossible!
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oxxo
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| Quote: | Originally posted by BajaSerg
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Oye Sergio, How about making up some tee shirts like this, but instead of BajaSerg at the bottom, airbrush in BajaMama?
Suerte.
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Cajones
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| Quote: | Originally posted by Hook
I think the heating oil costs in the winter will eliminate Boston from any overall cost of living comparison.
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I'm not so sure about that. In order to live in La Paz from May through October, and be as comfortable as in Boston, one has to run the
airconditioning full time. La Paz avererage daytime high temperatures:
May 94
June 94
July 97
August 96
September 94
October 90
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Hook
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| Quote: | Originally posted by Cajones
| Quote: | Originally posted by Hook
I think the heating oil costs in the winter will eliminate Boston from any overall cost of living comparison.
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I'm not so sure about that. In order to live in La Paz from May through October, and be as comfortable as in Boston, one has to run the
airconditioning full time. La Paz avererage daytime high temperatures:
May 94
June 94
July 97
August 96
September 94
October 90 |
There are ways of staying cool without using AC,, all day, all the time. A good solid palapa structure with ceiling fans underneath it being the most
effective.
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Cajones
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| Quote: | Originally posted by Hook
There are ways of staying cool without using AC,, all day, all the time. A good solid palapa structure with ceiling fans underneath it being the most
effective. |
Yes, but there are also ways to stay warm in Boston without burning heating oil. One could go out in the woods and chop wood and burn that in your
fireplace. The point is, that once you try to draw in other elements into the equation, you have to give fair weight to all the relevant elements.
N'est ce pas?
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tripledigitken
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Cajones,
Would you punch out some numbers for Detroit?
Mulege and Detroit are on my short list for a retirement nest.
Ken
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Cypress
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Veggies and rent are cheaper in Baja than in the USA, unless you're buying into one of those "high dollar" tourist rental deals. Spent last winter at a neat place in Mulege for only $450/month; no pool, no golf,
just real good neighbors.
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Skipjack Joe
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Many of the items listed above are what Mexicans never buy. Not because they're expensive, but because it's not part of their tablefare.
1. 1lb Lean Hamburger - I only had a hamburger in one place and La Paz and it was overpriced and empty.
2. Loaf of White Bread - Mexicans eat those rolls (bodilla, I think they're called) and they sell for 10cents a piece.
3. 1lb Cheddar Cheese - Mexicans have there own cheese which I now find in safeway. Never had a quesadilla with cheddar.
4. 1 Pound Bacon - I don't recall bacon being added to my huevos ranchero.
All comparisons are amongst US cities and Mexico. Why would we expect to buy our products in Mexico at our prices. I would think that when you move to
another country be prepared to eat native foods or pay a higher price.
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comitan
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Skipjack
Nailed it on the head.!!!!!!!!!!!!!!!!!
When in Mexico live as Mexicans do---live cheap.
Not really true see many Mexican women buying expensive things I don't feel I can afford.
[Edited on 10-7-2008 by comitan]
Strive For The Ideal, But Deal With What\'s Real.
Every day is a new day, better than the day before.(from some song)
Lord, Keep your arm around my shoulder and your hand over my mouth.
The sincere pursuit of truth requires you to entertain the possibility that everything you believe to be true may in fact be false
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Timo1
Senior Nomad
Posts: 757
Registered: 11-2-2007
Location: Homeless
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Mood: Lovin every minute of it
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he he he....Today I priced out winter tires for all 3 vehicles
yep....Baja is WAY cheaper
not only tires...The furnace came on...here we go with$150-$200/month to heat
I need winter storm windows too
I can go on if you want me to
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