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Thread: Importers/Distributers Cause High prices?

  1. #1
    Politics.ie Regular Vega1447's Avatar
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    Importers/Distributers Cause High prices?

    This has been touched on elsewhere but I've not seen a thread.

    I must be careful Not To Get D*** Sued but there seems to be circumstantial
    evidence that importers and distributers are adding huge mark-ups to import prices.

    The immediate response is that retailers should bypass them like Nolans in Clontarf (and SuperQuinn?) are supposedly doing - ie import directly from UK and rest of EU?

    Why are Dunnes etc not doing this?

    Surely not to keep MossGroves (deliberate mis-spelling) in business?

    Or is it as simple as that retailers cannot sell a product unless bought from the "authorised importer"?

    Either way Irish Govt +EU need to act.

    If workers are to accept wage cuts there MUST be corresponding price cuts.

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    Quote Originally Posted by Vega1447 View Post
    This has been touched on elsewhere but I've not seen a thread.

    I must be careful Not To Get D*** Sued but there seems to be circumstantial
    evidence that importers and distributers are adding huge mark-ups to import prices.

    The immediate response is that retailers should bypass them like Nolans in Clontarf (and SuperQuinn?) are supposedly doing - ie import directly from UK and rest of EU?

    Why are Dunnes etc not doing this?

    Surely not to keep MossGroves (deliberate mis-spelling) in business?

    Or is it as simple as that retailers cannot sell a product unless bought from the "authorised importer"?

    Either way Irish Govt +EU need to act.

    If workers are to accept wage cuts there MUST be corresponding price cuts.

    The only way I see the EU getting involved is if there is an issue over anti-competitive practicies in the distributor's market, where they use market share to exploit retailers.

  3. #3
    Politics.ie Regular seabhcan's Avatar
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    The solution is for Irish people to get used to buying non-UK branded goods. The UK distributers have the Irish retail market over a barrel because Irish shoppers are unwilling to buy 'foreign' (ie. non-English/US) products.

    I think this is starting. Dunnes is now selling a German brand of nappies for less than half the price of UK produced Pampers.

    Competition from mainland europe is the only way the UK distributers will learn manners.
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    Quote Originally Posted by Vega1447 View Post
    Why are Dunnes etc not doing this?
    I'd be fairly surprised if Dunnes wasn't a bit like a mini-walmart, they control large elements of the supply chain all the way back to source. People forget the price war a few decades back between Dunnes and everyone else, which Dunnes won. It was great while it lasted, but then Dunnes was left in a semi monopoly position, and could put the prices up any way they liked. State intervention will ultimately be required for them I feel.

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  5. #5
    jpc
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    Quote Originally Posted by Dios View Post
    I'd be fairly surprised if Dunnes wasn't a bit like a mini-walmart, they control large elements of the supply chain all the way back to source. People forget the price war a few decades back between Dunnes and everyone else, which Dunnes won. It was great while it lasted, but then Dunnes was left in a semi monopoly position, and could put the prices up any way they liked. State intervention will ultimately be required for them I feel.
    Dunnes dominance of the market isn't as overwhelming as it used to be.
    But I feel that a lot of retailers rushed in here because they felt that the Irish consumer wasn't as price sensitive as those in their home market.
    That theory is being tested as we speak.
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    Quote Originally Posted by seabhcan View Post
    The solution is for Irish people to get used to buying non-UK branded goods. The UK distributers have the Irish retail market over a barrel because Irish shoppers are unwilling to buy 'foreign' (ie. non-English/US) products.

    I think this is starting. Dunnes is now selling a German brand of nappies for less than half the price of UK produced Pampers.

    Competition from mainland europe is the only way the UK distributers will learn manners.
    If you really look into this you will find the UK distributers have very little to do with the Irish market, most of the big brands will have their own country distributers and will in fact treat Irl as an area in the UK but prices are in Euro.

    Irish retailers want and try to react to currency differentials but keep the profit and pass on the losses regardless of Mary from Dunloe's stupid utterances.

    Your comments about UK distributers not having manners are disingenuous to say the least what actually happens is Irish distributers screw the retailers and they in turn try to buy from direct from distributers in other countries ala Dunnes as you quote and hence the growing success of Aldi/Lidl/Netto who are big enough to distribute on an EU basis.

    Country distributers make more money for brand manufacturers.

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    Lidl and Aldi doing quite well arent they? At the end of the day if the price is too high the consumers won't buy... people are shopping around for cheaper and better products.

    What's stopping people sourcing and importing goods from other EU countries and undercutting these "extortionate importers" ? Making a few quid for themselves and serving the consumers with cheaper priced goods during this recession at the same time.

    I totally disagree with your call for the government / EU to "do something" about "it".... what kind of action were you thinking of as a matter of interest?

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