Is Rip Off Ireland dead now that we've raced to the bottom?

[Protocol]

Even though our lab costs are now slightly below the EA average, consumer prices here are 20% above the EU27 average in 2010.

See here:

[broken link removed]


So if overall average lab costs aren't out of line with the eurozone, yet consumer prices are still too high, what's causing the excessive prices??

Indirect taxes? Our VAT was 21% until recently, now 23%, but across the EU many VAT rates have also risen. We are not an outlier here.

Excise? Only applies to alcohol, tobacco, car fuels and cars. This does help explain the higher price of cars. Note: our fuel taxes are by no means the highest.

Overheads / non-wage costs?? This is my point, higher overheads mean gross profit margins must be higher here than abroad. Rents were way too high, and still are for tenants in UORR leases.

 

[micmclo]

Great comment Nostradamus.

just fed up with stupid comments.

Was well on its way by late 2008

 

[Chris]

And we had loads of jobs



And we've no jobs now....so...should we just start printing more money?

Hehe, actually that's exactly what the ECB is doing.

Even though our lab costs are now slightly below the EA average, consumer prices here are 20% above the EU27 average in 2010.

See here:

[broken link removed]


So if overall average lab costs aren't out of line with the eurozone, yet consumer prices are still too high, what's causing the excessive prices??

Indirect taxes? Our VAT was 21% until recently, now 23%, but across the EU many VAT rates have also risen. We are not an outlier here.

Excise? Only applies to alcohol, tobacco, car fuels and cars. This does help explain the higher price of cars. Note: our fuel taxes are by no means the highest.

Overheads / non-wage costs?? This is my point, higher overheads mean gross profit margins must be higher here than abroad. Rents were way too high, and still are for tenants in UORR leases.

Prices rise because of monetary inflation. The reason prices have been going up again is because prices for raw materials have been going up significantly, especially energy related. Inflation is always and everywhere a monetary phenomenon.

 

[ajapale]

... no etary inflation. ..

Whats no-etary inflation?

 

[Firefly]

Whats no-etary inflation?

I presume that's "monetary inflation".

 

[cork]

What get me is prices of some things here compared to abroad.

eg. paracedemol.

On the other side - own brands from ALDI and LIDL are pretty good quality.

At one time in Ireland - some own brands were of various quality.

 

[Chris]

Whats no-etary inflation?

Damn iPhone autocorrect, as Firefly already said it should say monetry inflation.

What get me is prices of some things here compared to abroad.

eg. paracedemol.

I think such phenomena have mentioned before, but here is one explanation.
A friend of mine suffers from Asthma and his inhaler costs about €16. In Spain he was able to get the exact same one for €5 while on holidays there. When he asked his pharmacist back home about this he replied that he was not allowed to source his medication from the same place as Spanish pharmacies do, he is strictly regulated where he can buy from. He couldn't even buy directly from a Spanish pharmacy at €5 and sell it for €7. When it comes to the cost of medication in this country the blame rests with government.

 

[bullbars]

When he asked his pharmacist back home about this he replied that he was not allowed to source his medication from the same place as Spanish pharmacies do, he is strictly regulated where he can buy from. He couldn't even buy directly from a Spanish pharmacy at €5 and sell it for €7. When it comes to the cost of medication in this country the blame rests with government.

Just a thought but, is this a good or a bad thing? Especially where medication is concerned is it not better that prime source vendors are indentified? Tracebility / accountability factors??

 

[Latrade]

Just a thought but, is this a good or a bad thing? Especially where medication is concerned is it not better that prime source vendors are indentified? Tracebility / accountability factors??

There's actually pretty recent evidence that the current stance might have benefits along what you've said. The rise of fake medication isn't just an online or email spam issue, it's even leaking into "official" supply chains in the UK and Europe. It does seem to be those with a more open sourcing supply chain that are affected. I can't remember the exact stat, but it's a worryingly significant percentage of medications supplied through pharmacists in the UK is thought to be counterfeit. I'm not aware of similar levels or such as significant a problem here in Ireland.

 

[Chris]

How about letting the consumer decide? Since my friend found out about the price of the inhaler in Spain he gets friends and family to bring some back whenever they go and so far has not had a problem in over four years of doing this.

If people are more comfortable paying a higher price for a possible lower chance of encountering a fake then let them do so. Everybody shouldn't be punished with higher prices because some people have a concern.