We have lost the run of ourselves...

[ClubMan]

For one thing, we are all in the the same market now - the common market.

Yes - but there are still significant national/regional variations such as different tax regimes, different interest rate regions (e.g. eurozone and others), different cost bases (e.g. transport etc.), different supply/demand environments and so on that mean that prices still vary widely.

 

[Purple]

For one thing, we are all in the the same market now - the common market. Paying 50 euro for a bottle of wine ( and from a surly waiter in Ireland ) that is 10 euro in France does not make it good value in Ireland ...unless you have lost the run of yourself. The little bit of recession that will surely come will do no harm to those who think the world owes them a living.

So you think that rents are the same in rural Poland as they are in Dublin? What about insurance and labour rates? What about the tax on the wine, is that the same all over the EU? (hint: No it's not) What about the cost base of every supplier they have, are they the same in Dublin and every other place in Europe?
Why do you think that more restaurants fail here than any other business? Do you think it's because they are all "ripping us off"?
Go to London and have a nosh-up in a two or three star Michelin restaurant. When you get back you will think that Kevin Thornton is giving the food away. As I said, it’s all relative.
It's funny but I have never met anyone who owns a small business that thinks the world owes them a living.
By the way, a bottle of wine that costs €10 in France should cost about €30 here. The normal mark up for wine in a restaurant is about 100%. It’s often the only area that they make money so if you are looking for value you can get it by only drinking tap water and knowing that you are eating at cost.

 

[ubiquitous]

We are talking about rip off Ireland, where often food which costs 20 or 30 euro elsewhere costs double that here. Dine abroad, and you will see what I mean. Not only that, but you generally get much better service in places like the States.

If Irish restaurants were able to eliminate taxes and much of their payroll bills from their prices, as US restaurants do, their menus would be at least as cheap as their counterparts in the US. When dining in the States, don't forget the effect of the combination of tips and taxes on top of a price which initially looks low but ends up high by the time you pay the bill.

For one thing, we are all in the the same market now - the common market.

I haven't heard of the "common market" since the early '80s. Maybe it still exists? Once upon a time it was supposed to denote a place where taxes, laws, wage rates and (dare I say it) prices would be the same or at similar levels within its territory. As Morrissey once said "very nice, very nice, very nice. Oh but maybe in the next world".

The little bit of recession that will surely come will do no harm to those who think the world owes them a living.

Be careful what you wish for. The last time we had a recession in Ireland the people who suffered most were the people who could not afford to eat in any sort of restaurant.

 

[Caveat]

Regardless of external factors like tax, insurance etc, we are all guilty of adopting a cherry picking attitude to perceived 'value'.

Allowing for labour, materials, profit...whatever:

Should e.g. a Merc SL really cost up to 300K?

It's arguably a better car in most respects than a Hyundai Coupé - but is it over 15 times better? Probably not.

Because food, like drinks and drugs, is a transient pleasure it can be difficult for some (who may regard food as little more than fuel) to understand that others may gain great pleasure from a luxurious, expertly cooked meal. And like the Merc owner, they are prepared to pay for it.

I too am prepared to pay (and have paid) €200 for a meal for two without wine. It's usually much better than a €50 meal for two - but again, probably not 4 times better.

It goes without saying that 'value' cannot be measured and within reason, is completely subjective.

I could almost guarantee for example that rabbit has spent x amount of money on something that I would never dream of spending it on...

 

[room305]

Regardless of external factors like tax, insurance etc, we are all guilty of adopting a cherry picking attitude to perceived 'value'.

Allowing for labour, materials, profit...whatever:

Should e.g. a Merc SL really cost up to 300K?

It's arguably a better car in most respects than a Hyundai Coupé - but is it over 15 times better? Probably not.

Exactly, I consider a lot of this kind of stuff as essentially price discrimination. It's not so much that the Merc is 15 times better than the Hyundai, as someone is willing to pay 15 times more to have it.

Think of economy and first class on a British Airways flight. There's no way BA would justify the massive price differential on the basis of a few free drinks, extra legroom and more attention from the staff. So is it worth it? Is it good value? Obviously some people think so. As with the expensive Merc, a large factor of this is probably the exclusivity set by the price (can't imagine first class seats would command the same price if they were distributed randomly around the plane).

Although it is said to have a lot of societal benefits (i.e. costs are weighted according to those who can afford to pay more), people usually balk at outright price discrimination (exact same good, different price depending who is buying). Hence the rise of premium branding!

 

[Bazoo]

Used to be an Indian on Sth Georges St called the East end or the West End - can't remember. It was a great shop - very nice food and very reasonable and the staff were just great. I think its gone now though. Dunno why.

That was East End Tandoori. A fantastic place. Was very disappointed when it closed. It's now Darwins which does great food but not cheap. For the poster who was looking for a recommendation on an Indian, jaipur on George's Street is the best I've been to in Dublin. Lovely restaurant, great food, huge portions! Think they might have opened up another branch or two but haven't visited those.

 

[Purple]

Exactly, I consider a lot of this kind of stuff as essentially price discrimination. It's not so much that the Merc is 15 times better than the Hyundai, as someone is willing to pay 15 times more to have it.

Think of economy and first class on a British Airways flight. There's no way BA would justify the massive price differential on the basis of a few free drinks, extra legroom and more attention from the staff. So is it worth it? Is it good value? Obviously some people think so. As with the expensive Merc, a large factor of this is probably the exclusivity set by the price (can't imagine first class seats would command the same price if they were distributed randomly around the plane).

Although it is said to have a lot of societal benefits (i.e. costs are weighted according to those who can afford to pay more), people usually balk at outright price discrimination (exact same good, different price depending who is buying). Hence the rise of premium branding!

Good post, sums it up quite well.