High Food Prices in Finland - not a mystery!

[harryc]

http://www.iltasanomat.fi/kotimaa/art-1 ... 78929.html

[Upphew]

http://www.iltasanomat.fi/kotimaa/art-1 ... 78929.html

I don't think that those wages are the reason. ICA in Sweden seems to be about the size of Kesko and their CEO seems to get wages that are on same ballpark.

[harryc]

Who said food was cheap in Sweden_

[Beep_Boop]

To be honest, it's kinda childish to attribute the level of food prices in Finland to that.
Also, are food prices in Finland high? I haven't noticed. I mean, they're higher than Estonia or Germany or Netherlands, but so are the salaries in Finland. From my experience, the only disproportionate prices (relevant to salaries) in Finland are the alcohol prices.

[harryc]

Those salaries are only a symptom of what's going on.

[Beep_Boop]

Those salaries are only a symptom of what's going on.

RIght.
So higher income ls a symptom of the food price problem. I guess I better start paying back some of my salary to help solve the problem.. oh, wait, I already give back 35% of it.

Back to reality: From what I've seen, food prices in Finland are quite reasonable compared to income and the general level of life here. Do you have sources and/or calculations that show that food prices are noticeably and disproportionately (to income) higher in Finland than western and Nordic European countries?

[tuttu]

if you would compare these salaries to other countries' food chain CEOs, and draw conclusions from that, now that would be interesting.

like this it's just what you'd expect from any country's tabloid newspaper.

if someone could explain those higher food prices reasonably, that would be interesting.
they're really quite a bit higher than e.g. germany, and i don't see the higher income anywhere - only higher taxes...
it's also not only food. take books, for example.

[harryc]

Do you have sources and/or calculations that show that food prices are noticeably and disproportionately (to income) higher in Finland than western and Nordic European countries?

All you need to do is to compare Lidl prices in Finland with those in Sweden and Denmark - offers or non-offers.

It's as simple as that!

Of course - as a refugee - you have income sources that the rest of us don't have! So prices may mean nothing to you.

[Rosamunda]

Which books? Finnish?

Do you have any idea what constitutes a print run in Finland compared to, say, Germany or the UK? I have published a book and I get royalties - if my book had been published in the UK or Germany, I probably wouldn't be trying to do three other jobs while trying to write the next one. Look in today's Hesari and compare the income of Leena Lehtolainen to someone like Donna Leon...

As for food, I actually think that good quality local produce, possibly organic, is way cheaper here than in - for example - the UK. Blueberries cost a small fortune in the UK - here they are free. Organic milk is cheaper here than in the UK, so are many other local, organic ingredients. I guess Lidl in Germany is cheaper than Lidl in Finland but that is mostly VAT and logistics.

[harryc]

I guess Lidl in Germany is cheaper than Lidl in Finland but that is mostly VAT and logistics.

VAT diff is 7% - food transport is only a few % and that would assume to be that the item in question is German, But these days shipments within EU require little administration so the main cost is loading and unloading - thus the freight diff between Munchen and Hamburg is minimal compared to Hamburg to Finland.

So in the end we may be talking about 10% - and THAT is hardly the Lidl diff in pricing!

[Beep_Boop]

All you need to do is to compare Lidl prices in Finland with those in Sweden and Denmark - offers or non-offers.

I did, many times.
Because of my work, I travel a lot to Sweden, Estonia, Germany, and Netherlands. I also get to meet a lot people who work there in a similar field to mine. My conclusion is that the food prices in those countries are proportionally (to salaries) cheaper, but not more than that.
For example, my German acquaintances who do the same work as I do are paid roughly 15-25% less than me or my coworkers here in Finland. This percentage is quite similar to the average difference in food prices

If you have concrete numbers for your claims I'd be more than happy to see them. After all, these kinds of discussions are very nice have so we can learn more.

Of course - as a refugee - you have income sources that the rest of us don't have! So prices may mean nothing to you.

Okay, first of all.. really? Is this the best thing you can do once you're cornered?
Second of all, no I'm not a refugee. It's a well known fact in this forum. My post history in this forum shows, in details, how and why and when I came to Finland and the reason for staying.

Lastly, I have only one income source which is the salary I get from where I work... and since you seem to be very interested in my sources of income (by bringing it up) I'll add that it's a very, very good salary (you can probably deduce it from the 35% tax rate), so I can understand the level envy that would make you create some false scenarios in your head about me

[harryc]

If you have concrete numbers for your claims I'd be more than happy to see them. After all, these kinds of discussions are very nice have so we can learn more.quite simple:

As a citizen of the world you have the right to look at Lidl.se and Lidl.dk

Please do so - and follow them.

And just for kicks - look at Lidl.ie - Irish salaries somewhat lower - but not enough to explain price diffs,

[Querfeldein]

Having recently lived in Germany and now Finland, the difference in food prices and prices for services is quite noticeable. The retail sector is probably less competitive in Finland compared to Germany, but even stores that sell mostly on price (e.g. Lidl) charge more for the same items here.

However, apart from the higher taxes and more expensive logistics (which are certainly a factor), the median pre-tax income in Finland is also higher than in Germany, and I am almost certain that the difference is even more pronounced in the low-skilled services sector. In a competitive, price-driven and low-margin business like supermarkets, it's not the affluence of the shoppers that sets the price, but the cost to employers.

https://en.wikipedia.org/wiki/List_of_E ... edian_wage

Personally, I am ok with paying a little more for everyday goods, if it means the employees also get to take home a little more. If Lidl Finland turns out to be on five times the margin of Lidl Germany, I'd probably feel ripped off, but I highly doubt that's the case.

[harryc]

more expensive logistics (which are certainly a factor)

Have you ever been involved in international commercial shipping? I have - and believe me, the differences now with intra EU shipments are pretty negligible - it's all mostly loading and unloading!

Lidl Finland turns out to be on five times the margin of Lidl Germany

Why on earth pick a number like FIVE times - DOUBLE should be enough to draw interest.

[Karhunkoski]

In a competitive, price-driven and low-margin business like supermarkets

Supermarkets are not low margin businesses. Their margins are typically 35-50%, with some exceptions for lost-leaders or high-end products.