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There is evidence that the prices they charge in Austria are often significantly higher than in Germany, meaning higher profits per sale, at the expense of the

There is evidence that the prices they charge in Austria are often significantly higher than in Germany, meaning higher profits per sale, at the expense of the consumer who's wages are lower than those in Germany, so it's a double whammy.

lotsofpulp 3y ago
In the US, many times you cannot compare prices between cities much less states due to differences in land price and costs of city and state taxes/regulations such as minimum wages. Surely, Austria and Germany, as two different countries, have at least a few big differences in tax systems/labor laws/local laws/etc that can affect cost of goods sold?
- FirmwareBurner 3y ago
  The retailers have been questioned regularly why they overcharge in Austria compared to Germany, and they never cited extra wages(lower than Germany FYI), business or tax overhead as the reason, but rather beat it around the bush saying "we're only charging what the market will bare and this is what the Austrian market bares", basically admitting they're screwing you and getting away with it, especially that they often sell stuff made in Austria cheaper in Germany.
  - lotsofpulp 3y ago
    I guess that is technically the truth. As a business owner, I also charge the most I think my customer’s were able and willing to pay. But in all cases I am familiar with (US/Canada/UK/Germany), there are sufficient competing grocery retailers that the price most customers are willing to pay is only a couple percentage points higher than the cost of goods sold.
  - the_mitsuhiko 3y ago
    That does not reflect actual reality. Retailers have answered plenty times why they are charging higher prices in Austria compared to Germany and the arguments are hard to ignore (higher cost of doing business, higher taxes, higher density of super markets, more rural delivery requirements etc.). Specifically on that point: > extra wages(lower than Germany FYI) That is incorrect, the cost of an employee in the grocery space per hours worked is still higher in Austria than Germany, quite meaningfully so.
    - FirmwareBurner 3y ago
      Which higher taxes? Which is higher cost of doing business? Please be specific, otherwise it's just parroting the fake corporate propaganda of the supermarket chains.
      - the_mitsuhiko 3y ago
        See https://news.ycombinator.com/item?id=37536203 https://news.ycombinator.com/item?id=37536203
the_mitsuhiko 3y ago
> There is evidence that the prices they charge in Austria are often significantly higher than in Germany The cost of doing business in Austria is significantly higher for supermarkets. On the one hand because Austria has many more supermarkets to begin with per chain, secondly because of the high cost of labor in the country. Comparing countries that way is not trivial.
- FirmwareBurner 3y ago
  Where exactly is this extra higher cost you're talking about?
  - the_mitsuhiko 3y ago
    See https://news.ycombinator.com/item?id=37536203 https://news.ycombinator.com/item?id=37536203

lotsofpulp 3y ago

In the US, many times you cannot compare prices between cities much less states due to differences in land price and costs of city and state taxes/regulations such as minimum wages. Surely, Austria and Germany, as two different countries, have at least a few big differences in tax systems/labor laws/local laws/etc that can affect cost of goods sold?

FirmwareBurner 3y ago
The retailers have been questioned regularly why they overcharge in Austria compared to Germany, and they never cited extra wages(lower than Germany FYI), business or tax overhead as the reason, but rather beat it around the bush saying "we're only charging what the market will bare and this is what the Austrian market bares", basically admitting they're screwing you and getting away with it, especially that they often sell stuff made in Austria cheaper in Germany.
- lotsofpulp 3y ago
  I guess that is technically the truth. As a business owner, I also charge the most I think my customer’s were able and willing to pay. But in all cases I am familiar with (US/Canada/UK/Germany), there are sufficient competing grocery retailers that the price most customers are willing to pay is only a couple percentage points higher than the cost of goods sold.
- the_mitsuhiko 3y ago
  That does not reflect actual reality. Retailers have answered plenty times why they are charging higher prices in Austria compared to Germany and the arguments are hard to ignore (higher cost of doing business, higher taxes, higher density of super markets, more rural delivery requirements etc.). Specifically on that point: > extra wages(lower than Germany FYI) That is incorrect, the cost of an employee in the grocery space per hours worked is still higher in Austria than Germany, quite meaningfully so.
  - FirmwareBurner 3y ago
    Which higher taxes? Which is higher cost of doing business? Please be specific, otherwise it's just parroting the fake corporate propaganda of the supermarket chains.
    - the_mitsuhiko 3y ago
      See https://news.ycombinator.com/item?id=37536203 https://news.ycombinator.com/item?id=37536203

the_mitsuhiko 3y ago

> There is evidence that the prices they charge in Austria are often significantly higher than in Germany The cost of doing business in Austria is significantly higher for supermarkets. On the one hand because Austria has many more supermarkets to begin with per chain, secondly because of the high cost of labor in the country. Comparing countries that way is not trivial.

FirmwareBurner 3y ago
Where exactly is this extra higher cost you're talking about?
- the_mitsuhiko 3y ago
  See https://news.ycombinator.com/item?id=37536203 https://news.ycombinator.com/item?id=37536203