Tesco UK V ROI - still an average of 21.96% difference on there own brand goods !!

celticbest

I thought over the last few months that Tesco have been raising there pricing on an ongoing basis so I decided to compare a range of there own brand goods against the same range in the UK & the average difference worked out to be 21.96%



I'm just wondering if anyone else has noticed & if many people have started to cross the border again for there shopping.

wmpdd3

Wouldn't be bothered with value but I mostly buy Tesco own brand stuff. Only thing I have seen increase is baby milk, but It's gone up in Wales too so no good. The North is too far away for groceries.

noodler

Just to get in before the argument takes off:

There are some logical reasons for part of the difference regarding costs, economies of scale etc.

Okay - thats all.

NewApproach

How is this a consumer issue? What law are they breaking?

the groutch

looks like someone handpicked the ones with the biggest difference to exaggerate the difference

if you were to do the same for EVERY tescos own brand product, I'm sure the % difference would be in single figures

91011

Don't forget vat differences on some items such as biscuits (0% v 13.5% & 0% & 21%) also country of origin and manufacturers are different in different markets.

Also there can be size differences between the 2 countries. - Did you double check all sizes between both markets??

And finally, tesco value products are very low price products with low margins, so any transports costs over the irish sea is more prevalent in a low price product than a high price product

celticbest

NewApproach wrote: »

How is this a consumer issue? What law are they breaking?

It's a consumer issue because we're being ripped off.

the groutch wrote: »

looks like someone handpicked the ones with the biggest difference to exaggerate the difference

if you were to do the same for EVERY tesco's own brand product, I'm sure the % difference would be in single figures

I used my till receipt from last weeks shop. All products are exact matches from Tesco.com & Tesco.ie, except for the 8 products I have listed below, I have also shown how I calculated the prices for comparison, I picked Tesco own brand for this specific reason & tried to make the comparison on as broad a range as possible. If you look at the figures there are some things that are cheaper in ROI but the vast majority are more expensive.

91011 wrote: »

Don't forget vat differences on some items such as biscuits (0% v 13.5% & 0% & 21%) also country of origin and manufacturers are different in different markets.

Also there can be size differences between the 2 countries. - Did you double check all sizes between both markets??

And finally, tesco value products are very low price products with low margins, so any transports costs over the irish sea is more prevalent in a low price product than a high price product

If you go to Tesco in Banbridge you will get all products at the UK price even though it's across the Irish sea ????



Some of the points above show me exactly why Tesco's see fit to charge far more in the ROI market for the exact same product being sold in the UK & NI.

Cabaal

celticbest wrote: »

It's a consumer issue because we're being ripped off.

Right,
tbh it belongs in the ripp-off ireland forum.

If people being unhappy with varying prices was a consumer issue they'd we'd have this forum full of people ranting.....just look at the ripp-off ireland forum to see what I mean.

celticbest

Cabaal wrote: »

Right,
tbh it belongs in the ripp-off ireland forum.

Can you move it there then??

borderlinemeath

Vat differences make a big difference to a comparable shopping bill.
Tesco/Dunnes receipts aren't very transparant regarding vat rates charged on items but only basic foodstuffs in Ireland are zero vat rated.
Not the case for the UK where the majority of foodstuffs in any supermarket is zero vat rated.

Try a comparable shop in lidl or aldi, their receipts are very clear as to what VAT is charged on each product. You would be very suprised at the results.

Also, just to clarify - the rate you used from Bank of Ireland - you would pay commision on top of the rate. The best rate you can get on sterling is using your credit card instore.

dudara

We do not discuss UK vs ROI pricing in Consumer Issues. Moved instead to the Rip Off Ireland forum

dudara

hawkwind23

shop in both tescos in the north and here in the south.
would be in either a few times a month for a weekly shop.
the one in the north is cheaper , no doubt about that.
some of the margins above are minor compared to stuff i buy , maybe 2/3 euros difference in a single item.

also in the north i can stock up on non perishable goods , there are a lot of offers such as buy 1 get 1/2 free , better than half price etc etc etc.
loads of offers too on each aisle.

yet here in the south there is hardly an offer, maybe a stupid thing where if i buy 2 items for 6 euros i save 20 cents.

whilst i can understand some differences in VAT and excise etc

FACT remains , tescos are ripping off its irish customers more than it rips off its uk customers

Pacing Mule

I've a number of criticisms of this survey,

Firstly the actual percentage is calculated wrongly. It's a 28% difference versus the UK Price (wrongly calculated as a percentage of Irish price rather than UK Price)

That said I don't for a second believe that the survey is fairly conducted.

Why include the things you can't accurately match up / compare. Tesco Value Scampi V Tesco Finest just because there was no tesco value in Ireland is showing to be over double the price here. Should have been left out completley.

Completely echo

91011 wrote: »

Don't forget vat differences on some items such as biscuits (0% v 13.5% & 0% & 21%) also country of origin and manufacturers are different in different markets.

And finally, tesco value products are very low price products with low margins, so any transports costs over the irish sea is more prevalent in a low price product than a high price product

VAT rates on most food items in the UK are 0% whereas over here you're looking at 21% for anything that's not a basic foodstuff. Alcohol excise duty is also different.

The reply about Belfast being over the Irish sea too is a fair point at first glance. However most major UK retailers will operate the same pricing across the UK as a whole and swallow any reduction in profits / extra expenses to NI rather than have seperate prices / websites etc.

91011 is spot on about the local suppliers / supply chains of Tesco own brand products. They're not neccessarily comparing a direct like for like product / supply chain costs.

I'd be interested if you could do a like with like comparison versus non tesco branded goods which are sourced from the same supply chain, amend the VAT rates and then see what the true percentage difference is.

After that do out a costing on running a business in Ireland versus the UK. See how everything including large local council rates not applied in the UK, higher labour costs, higher costs from local suppliers (be that ESB, Gas, Insurances, Transport, pretty much everything you can think of) adds up. Factor this back into the sale price of the goods and then give us a bottom line percentage of how much more Tesco earn here versus the UK.

I highlight earn here because that's the only true marker for how ripped off or not anyone is. The sale price of any goods has to include the costs of sourcing the goods and running the premises / business itself. Higher cost base has to equal higher sale price.

Don't get me wrong - I do think that Tesco earn more here per € of sales than the sterling equivelent in the UK but in reality it's a small percentage and nowhere near the 21 / 28% portrayed in the survey here.

Scottie99

91011 wrote: »

any transports costs over the irish sea is more prevalent in a low price product than a high price product

In the last 18 months or so, Tesco have integrated the "Tesco Ireland" into Tesco UK ie purchasing and transport. I would think the rises are due to exchange rates, rise in costs and greed.

TESCO IRELAND IS HISTORY AND IS ONLY IN NAME TO APPEASE THE IRISH

91011

Pageant Messiah wrote: »

91011 is spot on about the local suppliers / supply chains of Tesco own brand products. They're not neccessarily comparing a direct like for like product / supply chain costs.

I'd be interested if you could do a like with like comparison versus non tesco branded goods which are sourced from the same supply chain, amend the VAT rates and then see what the true percentage difference is.

I did that last September when the branded goods survey was out and on a basket of 56 branded items of identical size and brand, Tesco Ireland came out cheaper by 1.2% than the combined cheapest uk price as per mysupermarket.com (waitrose, sainsburys, tesco & asda)

Correct exchange rates were given and price difference ranged from 21% cheaper here to 28% cheaper in uk, but about 90% of items were within 5% either way.

Survey excluded all special offers on both UK prices & Irish prices.

rubadub

91011 wrote: »

Survey excluded all special offers on both UK prices & Irish prices.

This is important, I signed up to tesco uk just to see what was on offer, there were more offers on the Irish site and better offers too. I have noticed this a lot in recent years, lots of BOGOF and half price items, i.e. they are artificially held high which will skew any survey since most people I know would tend to go with the offer. If you go to tesco there are nearly always at least say 3 pizzas which are half price or a similar good offer, in the 80's I never remember this a BOGOF would have been a big deal back then, now its expected.

It is like half price or BOGOF is a standard offer in pizza takeaways, but when it happens in the chippers (like last year) there are queues down the street.

One indepenedent irish survey also ignored offers and dunnes were "cheapest", while if the actual price paid was show tesco came out on top. I shop in both dunnes and tescos and tescos invariably have more offers.

One other huge factor is manufacturers pricing, e.g. pampers are meant to charge a huge amount more to retailers at the wholesale price here than in the UK, so to match prices a Irish retailer might have to sell at a loss. Now all the prices in the lists above (bar the goodfellas) were tesco products, but only a very foolish price controller would match UK/Irish prices if the branded products they were competeing against had massive variations. e.g. if pampers were €10 here and £3 in the UK they would adjust their own brand nappy prices to compete inline with this, and they would be utter morons not to.

Dizzya

Their prices are getting totally ridiculous they have put up bakers dog food to 9.35 this week compared to 7.95 last week! They were selling glade candles for 2.50 this week they have them on offer buy one get one free 4.99 what a rip off.

EDIT: Posted by Mum

MASTER...of the bra

Scented candles are linked to cancer.
links

raymark

good for you high lighting this.it must have taken time.so well done.its about time everyone was questioning the price of everything.i have tried comparing the price of fuels in waterford.they vary greatly.no one really posts prices on web sites.one begs the question why? if i was in business and wanted customers,i d have no problem letting everyone know the price.we all need to start asking how much goods are before we purchase them.good to know there are like minded people out tthere.regards. raymark

CS Hasuki

I think Tesco came out a good few months back and admiitted prices were higher than in the UK. They blamed high commercial rents and supplier costs. Essentialy, Tesco gets ripped off by other Irish companies and landlords and passes the cost to the customer.

borderlinemeath

CS Hasuki wrote: »

I think Tesco came out a good few months back and admiitted prices were higher than in the UK. They blamed high commercial rents and supplier costs. Essentialy, Tesco gets ripped off by other Irish companies and landlords and passes the cost to the customer.

Not just that but I can only imagine the rates charged on a tesco (or any large supermarket) store by the local councils.

cjgib

Pageant Messiah wrote: »

us a bottom line percentage of how much more Tesco earn here versus the UK.

I highlight earn here because that's the only true marker for how ripped off or not anyone is. .

Thats the key point.We will never know how much they earn here relative to the UK until the politicians get their act together and compel all retail chains to publish their accounts in a transparent manner.They wont do this until Irish consumers become a militant force such as in the US.If we keep acting like sheep then we cant bleat about it every time we get fleeced.

borderlinemeath

cjgib wrote: »

Thats the key point.We will never know how much they earn here relative to the UK until the politicians get their act together and compel all retail chains to publish their accounts in a transparent manner.They wont do this until Irish consumers become a militant force such as in the US.If we keep acting like sheep then we cant bleat about it every time we get fleeced.

Are you in the army or something?

And the US consumers are not a militant force - they are rampant consumers, there's markets for the poor and even more for the rich.

Tesco publish their accounts, they just don't breakdown each market. And why should they? Would you tell everybody on here how much you get in your pay packet? I shouldn't think so.

You seem to have a problem with UK or foreign chains making (heaven forbid) a profit in Ireland. They're not charities!

cjgib

borderlinemeath wrote: »

Tesco publish their accounts, they just don't breakdown each market.

Really! That could just be why we just dont know how much profit they make here!

davo10

cjgib wrote: »

Really! That could just be why we just dont know how much profit they make here!

cjgib, you seem to be under the illusion that all retailers/businesses are morally obliged to charge the lowest possible fee per item and that it is wrong to make a profit. Tescos is one of the biggest employers in the state, it is their duty to their shareholders to ensure that profits are maximized, if profits fall then they will look to cut costs and that like any other business means cutting wages/staff.

What militancy are you referring to in the US?, post an example of this. The US is a completely different market to here due to scale,Vat,taxes, minimum wage etc and to use it as a comparison is .....

borderlinemeath

cjgib wrote: »

Really! That could just be why we just dont know how much profit they make here!

Why does it anger you so much?
People walk by you on the street everyday that could be earning 4 times what you earn. If they don't tell you are you going to treat them with the same begrudgery?

As Davo said, Tesco are a huge employer in this country, they do a lot to support computers for schools, equipment, and in my local tesco they have dedicated purchase areas highlighted for local suppliers.

You don't see that happening in Dunnes where all the profits go back to one family.

cjgib

I used the words "all retail chains" in my post,i was not singling out Tesco.

I dont expect these organisations to operate supermarkets for the good of their health but all organisations will charge what the market will bear and because we are sheep here in this country we get charged more.

I know this to be a fact having worked for a number of years in financial management for an Irish company selling into both Irish and UK chains.

Check out the price of Kerrrygold butter or Denny's bacon in Irish supermarkets v NI supermarkets.

In talking about the US I was alluding to their strong tradition of consumer activism.Ever heard of Ralph Nader?
check out these organisations,do we have any like this?Buy a burger in a fast food outlet in NY city and you'll see the calories listed on the menu boards beside each product.Could you see the vested interests here allowing that?
United States

• American Consumer Institute
• Better Business Bureau
• Consumer Action
• Consumers Union, publishers of Consumer Reports
• Consumer Watchdog (USA), formerly the Foundation for Taxpayer and Consumer Rights
• Public Citizen
• Consumer Federation of America
• Consumer Federation of California
• Center for Science in the Public Interest (food/nutrition)
• National Consumers League
• U.S. Public Interest Research Group
• Consumer Complaint Form, Federal Trade Commission

davo10

Which of these are the "militant forces" you refer to?.

I'm also inclined to think that someone with "financial management" experience would understand more about why goods cost more in one country than another particularly when you are selling to a country with a different currency (which is prone to fluctuations in value), market forces, special offers, marketing etc.

jett

...tell me this, why is irish pork half the price in the UK that it is here. What with transport etc it should be cheaper.
I suspect the answer is because they can and people are daft enough to pay it.

irishguy

Tesco seems to forget about our lower cooperate tax rates in Ireland when they complain about costs here. All there profits are only subject to 12.5% here compared to 28% in the UK. That should more than compensate them for the extra costs here.

Pacing Mule

irishguy wrote: »

Tesco seems to forget about our lower cooperate tax rates in Ireland when they complain about costs here. All there profits are only subject to 12.5% here compared to 28% in the UK. That should more than compensate them for the extra costs here.

This may be of interest to you it's not as clear cut as tax rate v tax rate.

rubadub

rubadub wrote: »

One other huge factor is manufacturers pricing, e.g. pampers are meant to charge a huge amount more to retailers at the wholesale price here than in the UK so to match prices a Irish retailer might have to sell at a loss.

At the moment eurospar have 24x500ml cans of heineken at 5% for €26, this is intended for the Scottish market, I have no doubt Heineken are charging far lower wholesale price there for a higher % beer- which means more ingredients, and more duty.

http://www.rte.ie/news/2009/0204/retail-business.html

Cormac Tobin, head of the largest pharmacy chain Unicare, claimed that some biscuits cost more than twice as much here as in Britain. He said McVities biscuits here cost 220% of what they would cost in Britain, while the price of a Colgate toothbrush was 74% dearer and Pampers baby wipes were 40% dearer.

Mr Tobin said had tried to persuade Irish distributors to cut prices following the fall in the value of sterling, but most had refused. He believed the only way prices would come down was when retailers named and shamed the distributors responsible for the high prices.

Retailer group RGDATA told the committee a tin of baby food - SMA Gold - made in Dublin costs a retailer €11.24 - but it can be bought in England for €8.72. Jim Marshall, a director of the group, said other prices here were also much higher.

He said a packet of Mach 3 razor blades cost €9.88 from the Irish distributor - but can be bought for €6.87 abroad.

John Foy, president of RGDATA, said he had been buying bottles of 7Up - which is produced in the Republic - in the North for 40 cent a bottle cheaper than he could get here. But he claimed the supply was cut off after the Northern agent came under pressure for selling into the Republic.

I think tesco have started to get stuff intended for the UK market -of course this will lead to more complaining.

celticbest

:eek: Now that's a suprise........:rolleyes: NOT !!

http://www.irishtimes.com/newspaper/ireland/2011/0329/1224293299271.html

TESCO INCREASED the prices of some well-known products significantly just weeks into the new year before reducing them as part of a 1,000-product price promotion launched yesterday.

Some of the products which the retail giant has highlighted in its new price-cutting campaign are now more expensive than they were at the beginning of the year.

At the end of December, a range of Tropicana orange juice was selling for €2.28. Its price went up to €2.59 at the end of January before being marked down to €2.49 as part of the new price campaign, making it 21 cent dearer now than it was 12 weeks ago.

Flahavan’s Progress Oatlets cost €1.95 at the end of last year. The price increased to €2.05 in the middle of January and then fell to €1.99 as part of the promotion. The product now costs 6 cent more than it did the beginning of the year.

At the launch of the campaign at the weekend, a Tesco spokesman said the price reductions would “deliver very tangible savings and customers will see the benefit in their pockets”. He said the price cuts would be clearly highlighted in all Tesco stores along with the thousands of other products that are cheaper than our competitors. “We are determined to offer the very best value for consumers and we will not be beaten on price.”

Bonne Maman Strawberry Conserve was being advertised in Tesco outlets this week as having a reduced price of €2.79, down from €2.95, but at the beginning of this year it cost €2.79.

In store today, 500g boxes of chunky cod from Donegal Catch cost €5.99, which, Tesco says, is down from €6.59. However at the beginning of this year, the product cost €5.99. It increased in price in the middle of February.

An 18-wash packet of Ariel Excel Febreze is selling for €6.15, down from €6.19. It was selling for €5.99 in early December before increasing in price to €6.19 in February.

Tesco is now selling Brennan’s Sliced Batch, claiming it has been reduced from €2.06 to €1.97. However, the bread was selling for €1.98 at the end of last year, before going up in the middle of February.

Jacob’s Creek Semillon Chardonnay costs €8.85, which Tesco says is marked down from €9.79; it cost €8.85 at the beginning of the year. A 100ml tube of Colgate Regular toothpaste, which Tesco says is down from €1.39 to €1.19, cost €1.19 in November before climbing in the new year.

A Tesco statement said the 1,000 price reductions were “real and meaningful”.

It said there had “invariably been some price increases in recent months due to inflationary pressures from world commodity markets which have been well documented. These changes have impacted on all retailers and consumers worldwide, not just Tesco. The post-Christmas period has also seen the ending of a number of promotional cycles with consequent increase in all retailers.”

Tesco’s UK parent launched a similar price promotion at the beginning of the month. According to the influential industry magazine the Grocer, more than a third of prices highlighted by the retailer in its promotional material had increased in price shortly before coming down.

Consumers Association of Ireland chief executive Dermott Jewell said he was not surprised by the price fluctuations. The big supermarket chains used “so much smoke and mirrors to confuse consumers”, he added.

“They are not clear with people about how they manage their prices and it is all but impossible for people to track what is going up and down but a lot of the time, the pricing is done in a calculated way to create an illusion of better bargains.”

sandin

Doesn't every large retailer use the same cheating tactics including Dunnes and the Carpetrights & Right price tiles of this world.

I'd love to see the german retail rules apply here. Very strict on advertising sale & special offers.

celticbest

sandin wrote: »

Doesn't every large retailer use the same cheating tactics including Dunnes and the Carpetrights & Right price tiles of this world.

I'd love to see the german retail rules apply here. Very strict on advertising sale & special offers.

So that makes Tesco claims in this case okay? They are the supermarket that run the biggest add campaigns on price reductions..... there claims are going to be scrutinized the most.

wmpdd3

rubadub wrote: »

At the moment eurospar have 24x500ml cans of heineken at 5% for €26, this is intended for the Scottish market, I have no doubt Heineken are charging far lower wholesale price there for a higher % beer- which means more ingredients, and more duty.

http://www.rte.ie/news/2009/0204/retail-business.html


I think tesco have started to get stuff intended for the UK market -of course this will lead to more complaining.

I was in the local cash and carry and I couldn't believe the prices of stuff there. i'd know the prices for health and beauty and baby stuff off the top of my head and there wasn't one item in the cash and carry cheaper than the discounters and supermarkets.

We had the card for a party and we left and went to a supermarket instead.

sandin

celticbest wrote: »

So that makes Tesco claims in this case okay? .

How on earth can you come to that conclusion on my post????

I DESPISE these type of pricing tactics, I hate with a vengence the likes of Carpet Right, Right price tiles, Reids and all other stores that have a perma sale on and would never under any circumstances buy from them.

Tesco are getting a rollicking in the press over this and rightfully so. Its cheating. Nothing positive about that word but whilst retail advertising laws remain as is, they and other retailers will continue doing it.

deelite

1000 price cuts - is there somewhere that all the products are listed as in a before and an after price on these price cuts.

I was in there yesterday and saw Lyons tea bags used to 2.89 price cut 1.99 (however on the other side the price in Supervalu was listed as 2.00)

celticbest

sandin wrote: »

Doesn't every large retailer use the same cheating tactics including Dunnes and the Carpetrights & Right price tiles of this world.

sandin wrote: »

How on earth can you come to that conclusion on my post????

Sorry.

Your original post was very ambigious, I took it that you thought Tesco's were right to advertise this way as other retailers currently do......

rubadub

sandin wrote: »

Doesn't every large retailer use the same cheating tactics including Dunnes and the Carpetrights & Right price tiles of this world.

Many do and I expect many shops, such as independent furniture shops are breaking the law.

celticbest wrote: »

So that makes Tesco claims in this case okay? They are the supermarket that run the biggest add campaigns on price reductions..... there claims are going to be scrutinized the most.

I expect their case is okay in the eyes of the law, especially as they know they will be scrutinized. Laws were introduced for these pricing practises, so if you do not agree with them perhaps you should contact your local TD.

Here is some info on it http://www.nca.ie/eng/Research_Zone/Consultation/Advertising/Draft_guidelines_on_price_discounts_part_3.html

sandin wrote: »

I DESPISE these type of pricing tactics, I hate with a vengence the likes of Carpet Right, Right price tiles, Reids and all other stores that have a perma sale on and would never under any circumstances buy from them.

I just ignore these pricing tactics, only gullible suckers will fall for them, I can evaluate good value with my own brain thanks very much, I do not need a sign to make up my mind for me.

I certainly would not boycott a store which could end up in my biting off my nose to spite my face -i.e. paying over the odds in some store who do not have "yo-yo pricing". If easily led people are paying over the odds for certain items then the shops can afford to price the stuff I do buy at good prices -I have often said that the some of the best deals in tescos are not highlighted as offers at all.