Why a pair of jeans costs triple in Lebanon

Price Transparency, Monopolies, and why a pair of jeans costs triple in Lebanon.

What is the one key factor that allows property developers to keep shafting the Lebanese consumer (other than his willingness to allow it)? It is the lack of price transparency. There is no reliable data in the market about what the "real" prices are, therefore your only source of data is the seller's word. The other related factor is collusion in the market. So they will all scream with one voice that prices haven't dropped (you've seen their comments in the press and on our page). Even when one of them, like Raja Makarem, breaks the "Thin Blue Line of Silence and Lies", by telling the truth that prices have dropped and that they're in trouble, they'll accuse him of being a liar.

This collusion leads to an effective monopoly, which is not different from how the Lebanese consumer is getting shafted in every other area.

Here's an example. This pair of jeans sells for $300 at the Sole Distributor (Wakil 7asri). If there's only one distributor, then he can price it at whatever he wants. So this guy sells it at $300 in Lebanon, where the per capita income is $600 per month, so it costs 1/2 a month's salary. In the US, where the per capita income is $4,600, it goes for $99 online delivered to your house, so it costs 2% of your monthly income.

In summary, there are advantages to capitalist systems in that competition provides low pricing and a variety of good products to consumers. There are advantages to socialist, or controlled economies, in that people get benefits such as free education, free medical care, retirement, free housing, etc. In Lebanon, it seems we have the worst combination of both worlds - expensive products, high taxes, and with no services, benefits, or infrastructure ... and no protection from the wolves.

And this is where we come in. Our mission is to provide the Lebanese consumer with the transparency to make an informed decision ... in other words, to protect him or her from the wolves.


ٍSource: Real Estate in Lebanon