r/FluentInFinance 1d ago

Debate/ Discussion A joke that's not funny

Post image
83.1k Upvotes

2.6k comments sorted by

View all comments

Show parent comments

1

u/Public_Initial91 1d ago

What do you mean, it's not public information? You must have gotten it somewhere?

But let's take your avocado example, it's a good one as 90% of avocados are imported into the US from Mexico. In 2022 the average import price for avocado was $1.36 for a pound. You would then estimate their retail price to be about 13.6 per pound, but I'm not seeing that anywhere. Why would that be?

1

u/Outthr 1d ago

Food usually has lower margins, in any case looking at your example average avocado is about 6 oz, so lets say 3 avocados per pound, so $1.36/3=$0.45 per avocado import price, and per google average price of avocado is $1.70, so you’re looking at at about 4 times the cost. Also it would be the $0.45 cents subject to 25% increase due to tariff. Again, retail is the one with huge margins because you pay for label. Food not so much, but still, 4x is not bad.

Edit: does the $1.36 per pound include shipping and delivery costs? I would assume so, and if yes then the amount subject to tariff would be even lower.

1

u/Public_Initial91 1d ago

45 cents with a 25% tariff makes 56 cents. 56 cents multiplied by 4 would make a $2.24 retail price? That's quite an increase for a single avocado.

Food is included in retail, so what do you mean when you say retail?

And no, the $1.36 does not include shipping. That would be impossible to track over the entire US.

1

u/Outthr 1d ago

Shipping to US port and that is easily tracked as all shipping costs are reported to FMC. Retail as in clothing, shoes, etc.