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High Hopes
Spending money in Bermuda is about more than a hefty price tag.
By Kory Logan
It is common for newcomers to Bermuda to be taken aback a bit by the cost of just about everything here. The reality is that, yes, Bermuda can be on the pricier side of the fence. Bermuda's government has eased the demands of the pocketbooks of its citizens and residents by allowing them the luxury of not paying income tax.
Instead of profiting from taxes, the Government of Bermuda funds itself by imposing an import duty on nearly everything brought to this country. Considering that Bermuda produces very little of what it consumes, this tactic has proven very lucrative for the Bermuda government over the years.
Although the duty is mandatory, business purchasers still get “sticker shock” when they see the cost of goods in Bermuda, often forgetting that the cost of Bermuda import duties, wharfage, processing fees and shipping are all included in that sticker price.
In reaction to what seems like an inflated price, company purchasers will shop online to get what they perceive as a better deal and import the goods to Bermuda themselves. However, those companies soon realise that they still have to pay the duty, shipping and all of the fees when the equipment they are importing arrives in Bermuda.
Additionally, by importing it themselves, the company has to take on all of the risk and man hours associated with shipping and customs processing. Some companies fail to recognise until it’s too late that the equipment purchased overseas very often does not have valid warranties or support contracts, as they were not purchased through a channel that is authorised for the Bermuda region (which usually falls under the Caribbean, not the U.S.).
I’ve worked in Bermuda’s technology market for more than seven years. In that time, I have dealt with hundreds of companies with U.S. or European purchasers who have been surprised by the cost of equipment in Bermuda. However, after breaking down the pricing to show them the real cost, I’ve always been within about 5 percent of the price they received elsewhere.
In fact, Bermuda pricing is often less expensive than that of our overseas competitors. Even large organisations with global discounts from major manufacturers like Cisco and Avaya are able to realise their global discounts through local companies like CCS Group.
By buying locally, the consumer will be dealing with companies that are experienced with the logistical challenges of importing to Bermuda. Local vendors will also cover the costs associated with shipping and customs processing. Additionally, the consumer can rest assured that they have purchased the equipment through authorised channels, and that they will have a local company to honour the warranty and assist their business should it experience equipment failure. That is a lot of added value, all for roughly the same price that a consumer would get from equipment from overseas competitors.
Personally, I have come to a similar conclusion with local retailers and vendors. As with any market, there will be companies that provide good value at reasonable prices, and there will be companies that do not. However, I do suggest that you give the local companies, large or small, a chance to earn your business. I’m confident you’ll be pleasantly surprised if you give Bermuda a look.
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