Monday, June 30, 2008

Cost of Living - Food

Go to any one of the numerous "cost of living" web sites and you will see that, for the most part, Portland is a more expensive place to live. The biggest factor to the higher cost of living is housing - around 150% more expensive for a house in Portland! However, utilities in Portland are quite a bit lower than in OKC. I think Oklahoma summers blow away the electricity bills for the year. Transportation is a little more expensive in Portland, probably due to cheaper gas in OKC. As I mentioned in this blog, if you're lucky gas use can be greatly reduced. A monthly pass on the Tri Met will run you about $76, which is probably a lot less than you are paying in gas per month in OKC. So, I don't really believe the transportation stat, unless they include oil changes and maintenance.

Food is supposedly more expensive in Portland (but not by much), according to the web. But I don't know if the cost of living sites include sales tax in their comparisons. Recall that OR does not charge sales tax. OK has a sales tax rate of 4.5% with each city taking their cut, to make usual sales tax around 8%. So, I had a thought: how does OK having sales tax affect the price difference for food and supplies?

Fortunately, this blog has a correspondent in each city, making this study a breeze. For our comparison stores, Sara used a Super Target, while I used a Target and Fred Meyers (like Albertson's). Ideally we would have compared two of the same store, but the Portland area is not blessed with Super Targets. Anyone who is familiar with Albertson's will know it is always a bit more expensive than other stores in the area, so keep that in mind when I reference Fred Meyers. Also, these totals would constitute those times when EVERYTHING runs out in your house. You know the annoying run to the store where you need two shopping carts and people look at you like you are one of those crazy survivalists...

For ordinary, no-food items, like tooth paste, laundry soap, and paper towels:
Portland $175.88
OKC $180.38

BUT WAIT, don't forget the sales tax!
OKC $194.81

Advantage Portland. Interestingly, most of the Target brands were the EXACT SAME PRICE. But adding sales tax you pay 8% more in OKC.

Now for food items, like bananas, frozen foods, etc. This is a mix of Target and Fred Meyers for the Portland totals.
Portland $85.82
OKC $75.85
OKC w/ tax $81.92

Advantage OKC. Bananas were cheaper in Portland, but many other items were slightly cheaper in OKC. Produce and meat are items that vary week to week, so most of the food stuff compared probably came from a box/jar. Coffee was a dollar cheaper in Portland (have to compete with all different kinds), while a 12 pack of Coke was a dollar cheaper in OKC.

So based on this comparison, with sales tax it is slightly more expensive to buy food and supplies in OKC. But since you don't have to buy tooth paste every week, you may save a little bit from week to week in OKC.

Side note: It is hard to compare restaurant prices, since the cost of a meal varies from establishment to establishment in a city, let alone comparing two cities. Going out to eat may have been included in the overall cost of living calculations from "official" sites. I am probably paying a bit more just eating near the downtown area. Let's just say my average "sit down" restaurant bill for a hamburger, fries, and a coke (or was it a beer?) is around $12 plus tip. Some other day I can go to the chain fast food places and see how those compare between cities, but not today.

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