How to tell when the profit margin is too high?

An article in today’s Helsingin Sanomat again reminded me of the fact that there is not enough competition in Finland. It states that Finnish food is up to 70% cheaper in Estonia than in Finland. Even Finnish chocolate is 15% cheaper in Tallinn.

Most of the time we’re talking of the exact same products that the companies sell, even though the companies try to tell you otherwise. The same products, shipped further, selling for a lower price. I’m 100% convinced that these companies are still making profit from the stuff sold in Estonia, too, so that’s a pretty clear-cut case of too little competition in Finland.

Sadly, the same lack of competition applies to much more than just food here, keeping prices for everything absurdly high. Another excuse that the companies use to justify the price difference are strategic decisions.

Yeah? What kind of strategic decisions? One of price gouging Finnish consumers?

Nice strategy. Not.

This entry was posted in Business, Finland. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>