Unless you're one of the '2pc of elite athletes', your spend is [broken link removed], regardless of price
!Post-Recession Prices
- Thread starter onq
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Unless you're one of the '2pc of elite athletes', your spend is [broken link removed], regardless of price
!M&S sell a lunch deal, sambo, drink, dessert in the UK for £4.50. They sell the same here for €6.50. Exchange rates would convert £4.50 into €5.18.
So M&S trouser a difference of about €1. 30 or 25% which surely cannot be accounted for by add'l transport or insuring against a fluctuating FX rate.
So M&S trouser a difference of about €1. 30 or 25% which surely cannot be accounted for by add'l transport or insuring against a fluctuating FX rate.
But it can be accounted for in higher wages, energy costs, rental costs, council charges, etc. In the long term companies can only charge more than their costs and as much as the customers are willing to part with.
The differences between UK High Street Stores and Grafton Street prices were highlighted a couple of years back when the Euro and Pound Sterling almost hit parity.
The higher prices in Ireland were unaccountable at that time - I have no doubt little has changed.
Retailers will charge what they can get - I previously referred to the discrepancy between two stores in relation to Flora Light - that's just one item.
And no, it wasn't on special offer - its been consistently priced like that for over a year.
The higher prices in Ireland were unaccountable at that time - I have no doubt little has changed.
Retailers will charge what they can get - I previously referred to the discrepancy between two stores in relation to Flora Light - that's just one item.
And no, it wasn't on special offer - its been consistently priced like that for over a year.
The exchange rate hit close to parity for an extremely short period of time. Prices of goods in the supply chain do not react immediately, but with a several month lag dependent on the good.
I have come across many products with similar price discrepancies. One thing I have noticed in recent years though is that Irish people have finally woken up to the idea of shopping around, which is totally ingrained in people on most of the continent. I was always amazed when Irish friends told me they simply couldn't be bother to find the lowest priced products.
I would accept this explanation if the differential were consistent across M&S but it's not AFAIK. This doesn't rule out a rational explanation, and maybe it highlights higher IRL operating costs, but regardless it is substantial and should be looked at. Inflation isn't currently a pressure but it will be, we need to iron out these anaomalies between us and our major trading partner, the UK.
Actually inflation is a big issue.
Inflation is the increase in money supply which causes first an increase in producer/raw material prices, and then later increases in the prices of consumer goods. We have seen massive increases in raw material costs from oil to wheat and corn, all the result of an increased amount of newly printed money chasing the same amount of goods. Walmart's CEO is expecting very high price increases for consumer goods this year, so inflation is coming and there is nothing that will be done about it, as the only way to reverse inflation is by contracting the money supply.