Why Tech is Expensive in Brazil

I’m sure I’ve mentioned this subject before but a tech site has broken down the reasons behind why tech is so expensive in Brazil. Among the reasons (often called the “custo Brasil“) are taxes, expensive employees, precarious infrastructure, status and pirating. Read the full explanation at Tecnoblog (in PT).

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3 thoughts on “Why Tech is Expensive in Brazil

  1. Adam,

    Very good article.
    The author completely negleted to add the abusive profits praticed by the commerce in general.
    So, on top of all the reasons mentioned, you have an absurd 100% guaranted profit expected by business owners…You buy a tire for 25 and naturally sell it for 50.
    Walmart was sued left and right when they moved into Brazil in the 90’s and started to challenged those pratices…the business community was furious at Walmart for selling Nestle and Coca-cola products for less than the factories could offer Carrefour and some other Brazilian grocery store chains…they sued and sued and apparently Walmart adapted to the ‘way” things are done in Brazil…
    Only more competition from other chains could probably brake that practice…but it is definitely something that adds a lot to the final price to the consumer in Brazil.

    Ray

    • Good point, Ray. In kind of the same way that status is important to certain consumers, setting high prices on the business’s end and knowing other businesses will follow suit means making a killing just the same.

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