Does it cost more to be poor?
By Diana Chai
Despite cries of ‘money cannot buy happiness’; it’s undeniable that for most ordinary folk (unless you’re Mark Boyle), how much money you have will decide how well you live in urban society.
And although many government as well as welfare initiatives are designed to help the poor; sometimes the best deals aren’t yours to be had.
It seems an absurd supposition but could it actually cost you more to be poor?
It’s a matter of profit
We live in a capitalist society where money talks. If you have it; you not only have more options in terms of consumer goods and services, but you also have more access to redress for consumer claims.
It seems a shock to kind idealists everywhere but the truth is; in many ways the system ensures the poor stays poor by charging them more for products and services.
But it doesn’t even stop at money – being poor will most likely cost you more in time, hassle and health.
If you haven’t noticed, here’s how this happens in Malaysia.
Homes
With the prices of homes and the need for a minimum 10% downpayment; home ownership isn’t’t just too expensive for poor Malaysians: it’s impossible. Those who aren’t able to buy are forced to rent. Rentals don’t come cheap either with the average rent of a low-cost apartment in the Klang Valley ranging from RM800-1000. To rent, tenants are also required to put down a 3 ½ month deposit for rent and utilities, which many are finding difficult to pay.
Bulk purchases
Buying items in bulk definitely save you money but if you don’t have enough to pay that amount in a go; you’re forced to buy one at a higher price. There is also the fact that bulk purchases require a vehicle to transport when many low-income earners do ride motorbikes in the city because they can’t afford cars.
Cleaner Sham lives with her husband in a rented room with 3 other labourers and odd-job workers. Sham earns RM750 a month for 7 days work a week. Between her husband and herself, they earn RM1500. “We can’t afford a car as the monthly room rental costs us RM600+utilities in the Klang Valley. Shopping is a hassle with the motorbike because I can’t put much on it. So instead, I buy small items at a nearby sundry shop which is more expensive than buying the item in bulk at a hypermarket.”
Many sundry shop owners actually buy their items in bulk at hypermarkets and sell them in their convenience stores at a 20-40% mark-up. You pay for the convenience they offer by bringing these items to your neighbourhood.
Larger items requiring shipment or delivery also discriminate against those who buy less. Mark shares with us a furniture shopping experience: “I wanted to buy a new dining table from a furniture shop. The table only cost RM299. But the owner said delivery would cost me RM80 and another RM20 to assemble. Since I drive an old Kelisa, there wasn’t any way I could fit it into the car to take home myself. I agreed to the fee. A little later I overheard him tell another customer that he would waive her delivery fee because she purchased RM5000 in items.” Disappointed, Mark asked the man why it was so but he couldn’t argue when the latter explained. “He said he had to cover his costs in delivering just one item because the margin of profit was too low to absorb it. I understood his rationale and I don’t really blame him but it seems like an annoying strain that because I don’t have RM5000 to spend; I have to pay an extra RM100 for my table.”
Services
Many services such as car washes, cleaner services, Laundromats and hair salons now encourage you to become a ‘member’ or buy packages to get cheaper prices. The discounts can be hefty from 30-70% but the catch is an upfront ‘package’ or member fee that is usually in the hundreds.
“I went to the carwash with my beat up old Proton for a wash and polish and the guy quoted me RM120.” Shared Mohd Hafiz. “But he told me if I signed up for a package costing RM1300 upfront, I’d get five free, full vehicle washes and all my subsequent wash and polishes will only cost RM50! What made him think I had RM1300 lying about in my wallet when I drive a car like that is beyond me!” he laughed.
The cut-throat car wash isn’t alone. Many businesses are now buying into the idea of offering more discounts if you would buy a few sessions upfront or if you become a member.
It makes business sense no doubt but ironic because more often than not, a man who can afford the sudden forking out of RM1300 to be a car wash member is unlikely to need a discount!
More than money
Beyond the cost of items, the poor also pay in many other ways. “My family has to go to government hospitals because it’s all we can afford. What happens even for a routine check-up is that it takes almost 4 hours on a workday. We miss work, wait for hours for something as simple as a cold. For those of us like me who are paid hourly or daily – it’s a good half day’s work gone,” says Tan, a retail assistant.
Lower income groups are frequently subjected to long waits. “I can’t afford a car in KL to I take public transport everywhere,” shared Norhayati, a clerk. “This means I have to leave for work at 6.30 to get into the office by 8.30. Not only is traffic bad, the buses wait nearly 45mins at certain stops to pick the most passengers. Don’t even talk about the wait for the bus to arrive sometimes.” Of course, the wait could be endured if one is able to get comfortable once in the bus. “The buses are packed like sardines at peak hours. It’s not uncommon for me to stand in a cramped bus for an hour long journey. I can’t tell you how tiring that is after a long day,” she added.
In a society where money truly rules; it appears that being poor doesn’t just set you up for a hard time due to lack – you also pay for it dearly in terms of time, money and energy.
It’s not likely that we’ll be ridding ourselves of this problem anytime soon but perhaps some measures can be put in place to alleviate an already struggling group.
This was brought you by Diana Chai from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.
Does it cost more to be poor?
Being poor will most likely cost you more in time, hassle and health. If you haven’t noticed, here’s how this happens in Malaysia.
By Diana Chai
Despite cries of ‘money cannot buy happiness’; it’s undeniable that for most ordinary folk (unless you’re Mark Boyle), how much money you have will decide how well you live in urban society.
And although many government as well as welfare initiatives are designed to help the poor; sometimes the best deals aren’t yours to be had.
It seems an absurd supposition but could it actually cost you more to be poor?
It’s a matter of profit
We live in a capitalist society where money talks. If you have it; you not only have more options in terms of consumer goods and services, but you also have more access to redress for consumer claims.
It seems a shock to kind idealists everywhere but the truth is; in many ways the system ensures the poor stays poor by charging them more for products and services.
But it doesn’t even stop at money – being poor will most likely cost you more in time, hassle and health.
If you haven’t noticed, here’s how this happens in Malaysia.
Homes
With the prices of homes and the need for a minimum 10% downpayment; home ownership isn’t’t just too expensive for poor Malaysians: it’s impossible. Those who aren’t able to buy are forced to rent. Rentals don’t come cheap either with the average rent of a low-cost apartment in the Klang Valley ranging from RM800-1000. To rent, tenants are also required to put down a 3 ½ month deposit for rent and utilities, which many are finding difficult to pay.
Bulk purchases
Buying items in bulk definitely save you money but if you don’t have enough to pay that amount in a go; you’re forced to buy one at a higher price. There is also the fact that bulk purchases require a vehicle to transport when many low-income earners do ride motorbikes in the city because they can’t afford cars.
Cleaner Sham lives with her husband in a rented room with 3 other labourers and odd-job workers. Sham earns RM750 a month for 7 days work a week. Between her husband and herself, they earn RM1500. “We can’t afford a car as the monthly room rental costs us RM600+utilities in the Klang Valley. Shopping is a hassle with the motorbike because I can’t put much on it. So instead, I buy small items at a nearby sundry shop which is more expensive than buying the item in bulk at a hypermarket.”
Many sundry shop owners actually buy their items in bulk at hypermarkets and sell them in their convenience stores at a 20-40% mark-up. You pay for the convenience they offer by bringing these items to your neighbourhood.
Larger items requiring shipment or delivery also discriminate against those who buy less. Mark shares with us a furniture shopping experience: “I wanted to buy a new dining table from a furniture shop. The table only cost RM299. But the owner said delivery would cost me RM80 and another RM20 to assemble. Since I drive an old Kelisa, there wasn’t any way I could fit it into the car to take home myself. I agreed to the fee. A little later I overheard him tell another customer that he would waive her delivery fee because she purchased RM5000 in items.” Disappointed, Mark asked the man why it was so but he couldn’t argue when the latter explained. “He said he had to cover his costs in delivering just one item because the margin of profit was too low to absorb it. I understood his rationale and I don’t really blame him but it seems like an annoying strain that because I don’t have RM5000 to spend; I have to pay an extra RM100 for my table.”
Services
Many services such as car washes, cleaner services, Laundromats and hair salons now encourage you to become a ‘member’ or buy packages to get cheaper prices. The discounts can be hefty from 30-70% but the catch is an upfront ‘package’ or member fee that is usually in the hundreds.
“I went to the carwash with my beat up old Proton for a wash and polish and the guy quoted me RM120.” Shared Mohd Hafiz. “But he told me if I signed up for a package costing RM1300 upfront, I’d get five free, full vehicle washes and all my subsequent wash and polishes will only cost RM50! What made him think I had RM1300 lying about in my wallet when I drive a car like that is beyond me!” he laughed.
The cut-throat car wash isn’t alone. Many businesses are now buying into the idea of offering more discounts if you would buy a few sessions upfront or if you become a member.
It makes business sense no doubt but ironic because more often than not, a man who can afford the sudden forking out of RM1300 to be a car wash member is unlikely to need a discount!
More than money
Beyond the cost of items, the poor also pay in many other ways. “My family has to go to government hospitals because it’s all we can afford. What happens even for a routine check-up is that it takes almost 4 hours on a workday. We miss work, wait for hours for something as simple as a cold. For those of us like me who are paid hourly or daily – it’s a good half day’s work gone,” says Tan, a retail assistant.
Lower income groups are frequently subjected to long waits. “I can’t afford a car in KL to I take public transport everywhere,” shared Norhayati, a clerk. “This means I have to leave for work at 6.30 to get into the office by 8.30. Not only is traffic bad, the buses wait nearly 45mins at certain stops to pick the most passengers. Don’t even talk about the wait for the bus to arrive sometimes.” Of course, the wait could be endured if one is able to get comfortable once in the bus. “The buses are packed like sardines at peak hours. It’s not uncommon for me to stand in a cramped bus for an hour long journey. I can’t tell you how tiring that is after a long day,” she added.
In a society where money truly rules; it appears that being poor doesn’t just set you up for a hard time due to lack – you also pay for it dearly in terms of time, money and energy.
It’s not likely that we’ll be ridding ourselves of this problem anytime soon but perhaps some measures can be put in place to alleviate an already struggling group.
This was brought you by Diana Chai from RinggitPlus.com. RinggitPlus compares credit cards, personal loans and home loans to help Malaysians get more for their money.
