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Price difference between Ireland and the North

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  • 23-12-2008 12:08am
    #1
    Koloman
    Registered Users Posts: 2,630 ✭✭✭


    The following article just appeared on the RTE website. It seems the shops in this Country need to reduce their prices a fair bit more to justify their claims! It says at most prices in the Republic should be no more than 5 to 6% dearer than in the North. http://www.rte.ie/business/2008/1222/retail.html Interesting eh?


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    #2
    boopolo
    Registered Users Posts: 578 ✭✭✭boopolo


    They must be reading boardsie ........

    Several OPs including myself have being sayng that all along. So comparing Irish prices to say London (higher costs than Belfast) it should be about even.

    Boo


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    #3
    Cabaal
    Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,497 Mod ✭✭✭✭Cabaal


    boopolo wrote: »
    They must be reading boardsie ........

    Several OPs including myself have being sayng that all along. So comparing Irish prices to say London (higher costs than Belfast) it should be about even.

    Boo

    Didn't you know, RTE and numerous papers read boards.ie for alot of there "news" :)


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    #4
    ejmaztec
    Registered Users Posts: 24,077 ✭✭✭✭ejmaztec


    I was thinking of the wholesalers and importers. They're either sh1t at negotiating prices with foreign exporters, or they are just plain greedy when they sell on to the retailers.


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    #5
    Koloman
    Registered Users Posts: 2,630 ✭✭✭Koloman


    ejmaztec wrote: »
    I was thinking of the wholesalers and importers. They're either sh1t at negotiating prices with foreign exporters, or they are just plain greedy when they sell on to the retailers.
    A bit of both probably and then the retailers jack up the prices again!mad.gif


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    #6
    Dont be at yourself
    Registered Users Posts: 10,581 ✭✭✭✭Dont be at yourself


    Several OPs including myself have being sayng that all along. So comparing Irish prices to say London (higher costs than Belfast) it should be about even.

    The VAT rate, minimum wage, amongst others, are the same in London as in Belfast, and much lower than Dublin.


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    #7
    Koloman
    Registered Users Posts: 2,630 ✭✭✭Koloman


    Has the gap narrowed or are we still being ripped off?


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    #8
    rubadub
    Registered Users Posts: 32,381 ✭✭✭✭rubadub


    Koloman wrote: »
    It seems the shops in this Country need to reduce their prices a fair bit more to justify their claims!
    What claims? and why should they have to justify or answer to anybody?
    Koloman wrote: »
    It says at most prices in the Republic should be no more than 5 to 6% dearer than in the North.
    They actual report did not say this. Every thing I read about this report was flawed. How can a retailer in 1 country be expected to match another country's price when he can be paying 50% more WHOLESALE prices, as determined by the MANUFACTURER.

    http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=NEWS+FEATURES-qqqm=nav-qqqid=39196-qqqx=1.asp

    http://www.boards.ie/vbulletin/showthread.php?t=2055476917


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    #9
    Fighting Irish
    Registered Users Posts: 7,065 ✭✭✭Fighting Irish


    Koloman wrote: »
    The following article just appeared on the RTE website. It seems the shops in this Country need to reduce their prices a fair bit more to justify their claims! It says at most prices in the Republic should be no more than 5 to 6% dearer than in the North. http://www.rte.ie/business/2008/1222/retail.html Interesting eh?

    Its interesting how most irish people pay the price then moan


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    #10
    K-9
    Registered Users Posts: 43,311 ✭✭✭✭K-9


    NekkidBibleMan wrote: »
    The VAT rate, minimum wage, amongst others, are the same in London as in Belfast, and much lower than Dublin.

    Add rents, lower wages, plus many are comparing € in the North with Southern prices. They simply can't compete with the exchange rate. Why does this have to be pointed out again and again.

    Mad Men's Don Draper : What you call love was invented by guys like me, to sell nylons.



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    #11
    Xterminator
    Registered Users Posts: 4,739 ✭✭✭Xterminator


    K-9 wrote: »
    Add rents, lower wages, plus many are comparing € in the North with Southern prices. They simply can't compete with the exchange rate. Why does this have to be pointed out again and again.

    did you bother clicking on the link?

    The report said that taking into account the rent, the exchange rate, the min wage, vat, and other considerations, that price differential should not exceeed 6%.

    Its nothing to do with exchange rate, etc etc. Its profiteering.


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    #12
    craichoe
    Closed Accounts Posts: 2,706 ✭✭✭craichoe


    Xterminator wrote: »
    did you bother clicking on the link?

    The report said that taking into account the rent, the exchange rate, the min wage, vat, and other considerations, that price differential should not exceeed 6%.

    Its nothing to do with exchange rate, etc etc. Its profiteering.

    # profiteer - make an unreasonable profit, as on the sale of difficult to obtain goods
    # profiteer - someone who makes excessive profit (especially on goods in short supply)

    The products don't seem hard to get to me.

    How about you shop around and stop blaming it on borders.


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    #13
    projectmayhem
    Registered Users Posts: 9,480 ✭✭✭projectmayhem


    Xterminator wrote: »
    did you bother clicking on the link?

    The report said that taking into account the rent, the exchange rate, the min wage, vat, and other considerations, that price differential should not exceeed 6%.

    Its nothing to do with exchange rate, etc etc. Its profiteering.

    While I'm sure there's a huge amount of profiteering out there, some retailers just simply have higher operational costs then those in the UK. To get stock in the UK you 1. can buy more of it (as your catchment area will be larger for customers), 2. drive it to you from warehouse (as opposed to get a boat/plane in the mix) and 3. a lot of the time deal directly with suppliers, rather then third-parties like I imagine a lot of Irish retailers have to go with...


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    #14
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    This, is the actual report in question. How exactly the 5-6% figure is arrived at, I'm not sure, as there doesn't seem to be a direct conclusion stating a single difference between UK and Ireland.

    It is interesting reading though, and you'll quickly see that the single biggest contributor to higher costs in Ireland, is Dublin. Costs in Dublin really do seem to be a bit exorbitant, especially rental rates. The cost of wages between Ireland and the UK isn't all that different, overall. Fuel costs are 17% lower here, and inbound freight costs are generally quite a bit lower in Ireland than the UK.

    I'm guessing that the reporters put all the differences together, and averaged it out, to come up with the 6% figure. I did remember Conor Pope saying that this figure was exclusive of VAT, which would make the actual number about 12.5% for consumers.

    At the end of the day, retailers can charge whatever they want, and will charge as much as they can get away with. It's up to us to decide whether or not to pay. If enough people cut back on all but the essentials, the prices will have to change to reflect a diminishing market.


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    #15
    K-9
    Registered Users Posts: 43,311 ✭✭✭✭K-9


    Xterminator wrote: »
    did you bother clicking on the link?

    The report said that taking into account the rent, the exchange rate, the min wage, vat, and other considerations, that price differential should not exceeed 6%.

    Its nothing to do with exchange rate, etc etc. Its profiteering.

    It just doesn't add up to me. All those costs are higher so how could it be 5/6%?

    Mad Men's Don Draper : What you call love was invented by guys like me, to sell nylons.



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    #16
    darc
    Closed Accounts Posts: 677 ✭✭✭darc


    Xterminator wrote: »
    did you bother clicking on the link?

    The report said that taking into account the rent, the exchange rate, the min wage, vat, and other considerations, that price differential should not exceeed 6%.

    Its nothing to do with exchange rate, etc etc. Its profiteering.

    That report was done when the exchange rate was at .78 (October)

    In the food sector, the cost of the goods is approx. 70% of purchase price net of VAT whereas in the fashion sector the cost of goods is 50% net of VAT.

    So by this reasoning, in the food sector 70% of the price of UK goods can be varied due to sterling, whereas in the fashion sector, 50% of UK goods can be varied due to currency differences.

    But this will all die down soon, it is envisaged that sterling will go back to the 78p - 82p level during the year. - It might move back over 90p in a coupl of weeks, but the medium term trend suggests a move below 82p within the next 3 - 4 months.

    Adf to that, big increase in excise duties on the old reliables in the upcoming british budget and the northerners may start coming back down south for their petrol.


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    #17
    rubadub
    Registered Users Posts: 32,381 ✭✭✭✭rubadub


    Xterminator wrote: »
    did you bother clicking on the link?

    The report said that taking into account the rent, the exchange rate, the min wage, vat, and other considerations, that price differential should not exceeed 6%.

    Its nothing to do with exchange rate, etc etc. Its profiteering.
    Did you bother to read the report? and not just RTE's or The Irish Times interpretation of the report? They obviously misread it, nowhere in the report did I see it say "that price differential should not exceeed 6%". I do not think the report took VAT into account either.

    It was really saying the cost of running the business was 6% more. It certainly did not take into account that distributors & manufacturers have vastly different RRPs and therefore vastly different wholesale prices to the retailers.

    I expect an Irish retailer would have to sell many things at a loss to just match the UKs retail price.

    http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=NEWS+FEATURES-qqqm=nav-qqqid=39196-qqqx=1.asp


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