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Conversion from Sterling Query

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  • 11-10-2010 10:07am
    #1
    Sandraf
    Registered Users Posts: 118 ✭✭


    Hi all,

    I found boots I liked on Clarks.co.uk website priced at Stg£69.99. I used the currency converter which Google threw up and it came out at €80 roughly. When I went into the store in O'Connell Street they were €95.00!!! How can they get away with such bad price conversions ??? Anyone have a similar experience ? Is there anywhere I can lodge a complaint ? Cheers


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    #2
    borderlinemeath
    Registered Users Posts: 5,340 ✭✭✭borderlinemeath


    Firstly the first currency converter that google throws up is XE which is the straight conversion - not the rate you or I would get from a bank. The best rate to get would be on your credit card and this is usually 2-3 cents down from this rate. Go into a bank and you'll be looking at a similar or less rate to your credit card and the bank will also charge commission.

    Secondly the VAT rate is different between the UK and Ireland - add on another 3.5%.

    Thirdly euro retailers pricing strategy is usually set at the start of the season and fixed on a set rate. This doesn't take into account currency fluctuations throughout the year. Depending on the markets this can work in the consumers favour or not.

    Also take into account if you wanted to drive to the north to buy your boots - it would cost you €10-€15 at least in petrol/diesel to get there.

    I wont even start on how much more it costs to trade here as an Irish retailer and a (far too small) percentage is also calculated for this.


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    #3
    keithclancy
    Registered Users Posts: 9,208 ✭✭✭keithclancy


    Sandraf wrote: »
    Hi all,

    I found boots I liked on Clarks.co.uk website priced at Stg£69.99. I used the currency converter which Google threw up and it came out at €80 roughly. When I went into the store in O'Connell Street they were €95.00!!! How can they get away with such bad price conversions ??? Anyone have a similar experience ? Is there anywhere I can lodge a complaint ? Cheers

    Bought a pair of Caterpillar boots about 8 months back,

    Cork, Ireland 85 Euros
    Den Haag, Netherlands 135 Euros.

    Forget the conversion rate, different prices for different countries/areas anyway.

    Plus your comparing Online to a Retail store, which has overheads, buying online is usually always cheaper unless the shop is trying to get rid of last seasons stock.


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    #4
    91011
    Closed Accounts Posts: 1,383 ✭✭✭91011


    Sandraf wrote: »
    Hi all,

    I found boots I liked on Clarks.co.uk website priced at Stg£69.99. I used the currency converter which Google threw up and it came out at €80 roughly. When I went into the store in O'Connell Street they were €95.00!!! How can they get away with such bad price conversions ??? Anyone have a similar experience ? Is there anywhere I can lodge a complaint ? Cheers

    Reason 1
    Staff in UK stores are paid minimum £5.93 per hour & £4.92 if under 21.
    In Ireland the staff are paid minimum €8.65.

    Reason 2
    Commercial rates in Dublin are on average 50% higher than equivalent rates in UK

    Reason 3
    Vat difference = 3.5%

    Reason 4
    Rent is still substantially higher in Dublin than UK.

    Reason 5
    Transporting to Ireland from UK adds on average 5%

    Try checking the exchange in shops like debenhams, (1.55) wallis (1.6), Monsoon (1.65) & others use - its scary and WAY above acceptable higehr costs reasons as outlined above..


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    #5
    mathepac
    Banned (with Prison Access) Posts: 4,991 ✭✭✭mathepac


    91011 wrote: »
    Reason 1 ...
    Reason 5 ...
    Reason 6 Tiger greed still permeating the Irish retail sector


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    #6
    borderlinemeath
    Registered Users Posts: 5,340 ✭✭✭borderlinemeath


    mathepac wrote: »
    Reason 6 Tiger greed still permeating the Irish retail sector

    Yeah sure - that's why so many retail units in shopping centres and high streets are lying empty - because you think you pay a few quid more than the UK then the retailers are making a fast buck.

    You're entitled to your opinion - but it's far removed from the reality of the situation.


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    #7
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    Not a Consumer Issue - we don't debate pricing differences here. Moved to Rip Off Ireland

    dudara


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    #8
    Skopzz
    Closed Accounts Posts: 535 ✭✭✭Skopzz


    borderlinemeath wrote: »
    Firstly the first currency converter that google throws up is XE which is the straight conversion - not the rate you or I would get from a bank. The best rate to get would be on your credit card and this is usually 2-3 cents down from this rate. Go into a bank and you'll be looking at a similar or less rate to your credit card and the bank will also charge commission.

    Secondly the VAT rate is different between the UK and Ireland - add on another 3.5%.

    Thirdly euro retailers pricing strategy is usually set at the start of the season and fixed on a set rate. This doesn't take into account currency fluctuations throughout the year. Depending on the markets this can work in the consumers favour or not.

    Also take into account if you wanted to drive to the north to buy your boots - it would cost you €10-€15 at least in petrol/diesel to get there.

    I wont even start on how much more it costs to trade here as an Irish retailer and a (far too small) percentage is also calculated for this.


    If you're going to head north just to buy boots, you're going to buy other things so that trip pays off. The cost of running a business down here is irrelevant - consumers have a right to shop wherever it's cheaper without being lectured by anyone trying to make money. No consumer owes a duo of loyalty to anyone. Student account holders at Banks like AIB are exempt from Commission also. Right now, the GBP to EUR exchange rate is at the pre-Greek crisis level, so obviously a good time to buy GBP. Just in time before the x-mas.


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    #9
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    I'd be more inclined to think it the other way round, with the Irish price being the "correct" price, and with the UK site they have much lower running costs, and are passing those savings on to the consumer


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    #10
    Sandraf
    Registered Users Posts: 118 ✭✭Sandraf


    Thanks for all the replies. All points noted with interest ! Still boot-less :(


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    #11
    91011
    Closed Accounts Posts: 1,383 ✭✭✭91011


    Sandraf wrote: »
    Thanks for all the replies. All points noted with interest ! Still boot-less :(

    Try the Clarks outlet store in Kildare village or of you're flush with cash, try LK Bennett / Bally in the same place.


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    #12
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    Sandraf wrote: »
    Hi all,

    I found boots I liked on Clarks.co.uk website priced at Stg£69.99. I used the currency converter which Google threw up and it came out at €80 roughly. When I went into the store in O'Connell Street they were €95.00!!! How can they get away with such bad price conversions ??? Anyone have a similar experience ? Is there anywhere I can lodge a complaint ? Cheers

    An Oireachtas committee looked into the pricing differences a few years ago, and found that when you include all the differences (rent, rates, wages, delivery, etc) between the UK and Ireland, that the prices in Ireland should be 6% more than the UK, before accounting for VAT. At the moment then, this would mean the Irish price should be 9.5% higher than the UK. Currently, £70 is going to be close to €82. 9.5% of that is €7.79, totalling €89.79 as the proper Irish price for those boots. So lets call that €90. If they're charging €95, then that's about 5% extra, after accounting for all cost differences.

    So, the difference is not massive, it's 5%. Now, is there are real reason for this 5% extra? It could be a buffer to account for the variance in exchange rates and extra delivery from UK to Ireland. Not so bad when you think of it.


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    #13
    91011
    Closed Accounts Posts: 1,383 ✭✭✭91011


    jor el wrote: »
    An Oireachtas committee looked into the pricing differences a few years ago, and found that when you include all the differences (rent, rates, wages, delivery, etc) between the UK and Ireland, that the prices in Ireland should be 6% more than the UK, before accounting for VAT. At the moment then, this would mean the Irish price should be 9.5% higher than the UK. Currently, £70 is going to be close to €82. 9.5% of that is €7.79, totalling €89.79 as the proper Irish price for those boots. So lets call that €90. If they're charging €95, then that's about 5% extra, after accounting for all cost differences.

    So, the difference is not massive, it's 5%. Now, is there are real reason for this 5% extra? It could be a buffer to account for the variance in exchange rates and extra delivery from UK to Ireland. Not so bad when you think of it.


    That survey was done based on a sterling exchange rate of 78p, however changes in inflation & costs since that survey (3 years ago) would suggest that at 78p rate Irish prices excluding the vat difference would now be the same. And if you do the calculations if the exchange rate was 78 p (1.28 on the reverse) the price works out almost identical before the extra 3.5% vat.


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