# Price differences between UK and Ireland



## pixiebean22 (27 Oct 2010)

This is something that has always baffled me.  How is it legal for shops to increase their prices so much over here?

What I mean by this is, a store in the UK charges £70 for a particular item, factor in the currency conversion the item should be €78 in the Irish store, say €80 to factor in fluctuations in exchange rates, but this item is actually €115 in the Irish branch of this store. 

Can someone please explain this to me?  It's not a general thing either because there is another UK store with Irish branches who charge exactly what the currency conversion dictates, ie £70 item will be €78 in the Irish branch.

I don't want to name any shops here but I'd say without a doubt frequent female shoppers will have an idea of what shop I'm referring to. 

This is the reason why I now do the majority of my shopping online because even after I factor in delivery costs it's still cheaper by a mile to buy online.


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## callybags (27 Oct 2010)

It's basic market forces- supply and demand. If a shop charges too much for a product, no-one will buy it. They then reduce the price to a point where people will buy it.

It's muddying the issue by comparing prices charged by the same chain of shops in the two countries ( eg Argos or Debenhams etc). 

There are numerous things which influence how much any item costs. Wages, rent, rates, taxes, transport costs etc. But it still comes down to what the market will bear.


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## z107 (27 Oct 2010)

It's a direct consequence of unsustainable high Irish wages.

I always feel like I'm in competition with MNC and public sector people when buying anything. I too buy most stuff off the internet.

The price differences are indeed huge.


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## huskerdu (27 Oct 2010)

In answer to the OPs question, of course it is not illegal for a multinational chain to charge a difference price in difference countries. Irish law does not  have anything to do with UK shops and UK law does not have anything to do with Irish shops. 

I assume you are suggesting that there should be an EU law which stipulates what price shops charge for goods and that this should be the same price in all 27 countries, with 27 different tax systems, wage structure and costs. 

Even in Irish law, the law does not dictate prices in shops, and I personally think that they should not do this. Are you seriously suggesting this ?

BTW, I am not defending shops that overcharge and I don't work in retail. 

Whether you like it or not, the costs of running a shop are WAY higher in Ireland that in the UK, - wages, electricity, rent etc. 

Shops will also charge what they think they can get away with. 

What can you do  - 
Don't shop in shops you thinks re too expensive 
Shop in NI
Get politially active and get involved in improving this country so that our cost base is more "normal"


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## spreadsheet (27 Oct 2010)

How about this. It must have been discussed before but I only noticed it at the weekend:

The (Irish) Sunday Independent costs €2.50. The sterling price printed next to it is £1.50. How does that work???


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## Protocol (27 Oct 2010)

No VAT on papers in UK.

13.5% VAT on papers here.


Also, people are not willing to pay higher prices in NI, so price must be lower.


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## spreadsheet (27 Oct 2010)

Protocol said:


> No VAT on papers in UK.
> 
> 13.5% VAT on papers here.
> 
> ...



Gosh even with the VAT removed it's still 25% dearer here. I wonder is it printed in the North or something?


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## Leo (27 Oct 2010)

spreadsheet said:


> Gosh even with the VAT removed it's still 25% dearer here. I wonder is it printed in the North or something?


 
No, it's printed in their glass fronted facility in Citywest alongside the Naas Road.


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## Complainer (27 Oct 2010)

umop3p!sdn said:


> I always feel like I'm in competition with MNC and public sector people when buying anything. .


But no competition with barristers, accountants, doctors, IT contractors, web designers, HR consultants etc? It is all the fault of MNC and public sector?


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## NOAH (27 Oct 2010)

Michael DELL hit the nail on the head awhile ago when quizzed why his PC's that were made here cost more than in the UK  ...  a big pause .. and then "

 "Well,  Irish people will pay more... simple as that"

Ever since then I refuse to pay "more" and go to extreme lengths to get value for money.

noah


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## Mpsox (27 Oct 2010)

There are some valid reasons for potential differences, higher VAT and hedging against currency flucuations for example, likewise, the reality is that the cost of doing business in Ireland is that much higher, for example, salary costs and insurance spring to mind.

What I find interesting is if you go into certain retailers they have, on their price tag, the price they charge in each country, not just Ireland and the UK, and there can often be quite a lot of differences. I recall seeing these tags in a childrens shop in Dundrum recently


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## z107 (27 Oct 2010)

> But no competition with barristers, accountants, doctors, IT contractors, web designers, HR consultants etc? It is all the fault of MNC and public sector?


Yes, as I said earlier, MNC and public sector.
I did forget to mention protected professions, such as pharmacists and doctors. Thanks for reminding me.


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## Protocol (28 Oct 2010)

The standard rate of VAT will be 20% in the UK from Jan 2011, and 21% here.

So don't believe any UK chain of shops operating in RoI that uses "higher VAT" as an excuse for higher prices.


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## Green (2 Nov 2010)

pixiebean22 said:


> This is something that has always baffled me.  How is it legal for shops to increase their prices so much over here?
> 
> What I mean by this is, a store in the UK charges £70 for a particular item, factor in the currency conversion the item should be €78 in the Irish store, say €80 to factor in fluctuations in exchange rates, but this item is actually €115 in the Irish branch of this store.
> 
> Can someone please explain this to me?  It's not a general thing either because there is another UK store with Irish branches who charge exactly what the currency conversion dictates, ie £70 item will be €78 in the Irish branch.



I was similarly baffled by a recent experience of a similar nature that I had too. 



Mpsox said:


> There are some valid reasons for potential differences, higher VAT and hedging against currency flucuations for example, likewise, the reality is that the cost of doing business in Ireland is that much higher, for example, salary costs and insurance spring to mind.



That's what they are saying, I have posted below the reply I got from one such firm to a price differential between Ireland and UK of approximately 31%



Complainer said:


> It is all the fault of MNC and public sector?



I don't believe that either!

This is the reply that I received to my complaint regarding a price differential of 31%..

======================================================
Thank you for your email.

As an international business that buys products from all over the world, we manage a pricing policy in the Republic of Ireland that takes a number of factors into consideration when we set our local price. International currency rates which include; Sterling, US dollar and Euros change on a daily basis, other factors such as local taxes, inflation and ultimately the cost of doing business in that country determine and help us set our prices. We try not to alter these prices substantially but reserve the right to do so. 

Our prices in the Republic of Ireland have not changed substantially and it is not our intention for them to do so, regardless of movements in individual currencies. We do not believe that is the right approach for our business and we still believe that we provide excellent convenience and value for money to our customers on a local basis

Please don't hesitate to contact us if you have anymore queries.


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## jpd (2 Nov 2010)

item = £100 excl VAT in UK
item = £117 incl VAT (17%) in UK (equivalent to € 137.65) 

€1 = £ 0.85p

so 
item = € 100/0.85 = € 117.65 excl VAT in ireland (ignoring cost of shipping, etc)
item = € 142.35 incl VAT (21%) in Ireland

Increase in price (because of VAT) = € 142.35 - € 137.65=€ 4.70

Anything more is increased costs and/or profit


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## Shelleyb (3 Nov 2010)

I don't agree with the argument that we are paid too much over here. I suppose it depends on your occupation. We do pay a lot in levies, services and facilities. In London, (for admin/sec work) my salary was 10,000 more then it was here and although I paid council tax, my tax was lower and it was cheaper to live there, cheaper in that I had a little extra cash. I was much better off.  Well I for one would like to see some of the larger English stores print their profits. Although I have heard that soem of the cheaper stores are now also charging more.  Either way, I do my research, I shop online, I do my food shopping in three/four different stores. I stock up on other stuff I need either in NI or the UK if I'm ever there. I also have stuff delivered to friends in the UK and posted to me here. I will continue doing that until things change here and they will!


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## PetrolHead (4 Nov 2010)

I have to say, I am starting to see the difference between UK and Ireland level out across a number of areas. 

I recently had call to compare a lot of prices between Tescos in the UK and Ireland and while the obvious (alcohol) was still more expensive here a lot of basic groceries were so close as made no difference after currency conversion... even allowing for all the VAT etc calculations. 

I have seen the same shift with fashion items too... along with other sectors. 

Where there is a big differential however, is when you compare the prices offered by Irish independent retailers and SMEs with those available in the UK. Prices here are still way too high. I don't know if Irish business owners aren't savvy or if they're just greedy but IMHO this is where the biggest disparities lie.


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## NOAH (6 Nov 2010)

with the 2.5% hike in uk vat wef 1 january 2011 we will get even closer BUT I am waiting to see if the UK chains add the 2.5% to Irish prices as well.

shop around is the key

noah

ps I was looking at a kettle in Argos and the price difference has narrowed from 15 quid to about 9 so going in right direction but once pound picks up against euro ... who knows


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## christian86 (10 Nov 2010)

you never mentioned the shipping costs of a product. Many products have  to be shipped to Ireland and the demand - so the amount of items you can  sell in Ireland - is in comparison to the UK quite low -> as a  consequence the prices went up

Anyway, very funny is Apple. When you buy a MAC in Ireland you pay  usually more than in every other country in Europe, but the central  storage centre is in Irland  So the transport costs can't make the  difference.


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## bren1916 (10 Nov 2010)

I simply wouldn't and do not buy anything which has a major variance in price between UK and here.
They might as well print 'WE ARE RIPPING YOU OFF, YOU MUG' under the Irish price so vote with your feet/wallets/purses if you want to see change.


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## Fatphrog (10 Nov 2010)

christian86 said:


> you never mentioned the shipping costs of a product. Many products have  to be shipped to Ireland and the demand - so the amount of items you can  sell in Ireland - is in comparison to the UK quite low -> as a  consequence the prices went up
> 
> Anyway, very funny is Apple. When you buy a MAC in Ireland you pay  usually more than in every other country in Europe, but the central  storage centre is in Irland  So the transport costs can't make the  difference.



On the apple store the laptops are the same price in ireland, france, germany and italy. ipods are cheaper in ireland than france. the difference seems to be some extra french levy. the desktop computers are more expensive in ireland.

the sterling/euro difference for ireland/UK on the apple store is reasonable at the moment at 0.85-0.86 or so.


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## spreadsheet (10 Nov 2010)

spreadsheet said:


> Gosh even with the VAT removed it's still 25% dearer here. I wonder is it printed in the North or something?



The Sunday Indo must have read this thread. They've changed the price....

But made it dearer!
It's now gone up to €2.70 to buy the paper in the Republic and still just £1.50 in the North.


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## bb12 (26 Nov 2010)

Bought a ceramic sink in B+Q recently.

The price in Swords = €321 + €25 delivery (forced to pay delivery as they don't allow store pick). Total €346.

Called  B+Q Newry. Same sink £239 + £15 delivery. and they would delivery to my address in Dublin no problem. The currency conversion on my credit card came to a total of €291.


Saved myself €55 with just 1 phonecall.


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