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So, who's the culprit? Who's ripping us
off?
After years of
analysing this question and looking at the evidence (apart from the rogue
plumber who just charged you £150 for a call-out to fix a washer), I've
concluded that multi-national business conglomerates and our Government are the
main culprits who have helped shape, and continue to maintain a 'Rip-Off
Britain'.
Small and
medium-sized business is often blamed for ripping us off either by their high
prices, poor service, or both. Although this may have been the case many years
ago, the vast majority of our 'home-grown' businesses are generally serving
customers quite well - it's only a small percentage that rip us off which
gains media attention and fuels our wrath. Poor service can be blamed
purely on mismanagement and inadequate resources. High prices in the UK as
compared with many other countries is another matter!
The major handicap to
small and medium-sized businesses in maintaining low prices
can squarely be blamed on a number of factors including, poor banking practices
and banks grossly overcharging for their services (UK bank
profits at £32bn!), high interest rates (as compared with the EU
average), virtually uncontrollable commercial rents and high property prices,
exceedingly high business tax rates, labour costs, high import duties and, of
course, the high cost of transportation (fuel duty).
The high operating
costs of running a business, combined with endless
Government regulation, UK banking practices and
multi-national profiteering, remains a major contributory factor that's induced
a negative affect by forcing UK businesses to mark-up their goods and services
far higher than is
compared with many European and other countries in World -
especially the USA! The end effect leaves UK businesses little option but to
charge higher retail prices upon consumers. However, contrary to what many
people may believe, 'home-grown' UK business profit margins are not excessive
as compared with other 'home' businesses in the
G8.
The multi-national
corporations, with their massive buying power and profits, have been on a quest
to capture the massive UK market since the early 1960's. Because we live on an
island, they know only too well that cross-border shopping (such as commonly
occurs in continental Europe without much Customs interference) is not really
feasible for us 'islanders', especially with punitive Government import tariffs
and restrictions on the value of some goods coming into the UK.
Since the
introduction of the Internet, and where people can (according to EU law) buy
goods from within the EU without import duty or UK VAT (which is generally paid
in the EU country of origin -
vehicles still being the exception), the multi-nationals
(and the Government for tax revenue raising reasons) don't really want us to
join the Euro in a hurry, where prices could be immediately compared and the
abolition of current Custom controls would surely happen. Not being satisfied
with their current market capture, with the Euro on the horizon, the
multi-nationals are now seizing on this 'opportunity' by either squeezing out
'home-grown' UK businesses or
buying-out their operations. Because of this 'imbalance'
within the UK market place, the
demise of the 'corner shop' and many other businesses, is
now happening at an alarming rate.
Trading on the
Internet, in order to keep overheads to a minimum, is fast
becoming the only viable option for many UK businesses, and
has indeed been driven by the consumer in their quest for lower and more
competitive prices. Unfortunately, buying goods over the
Internet is not always as
competitive
as consumers would believe - but of course, it's certainly the best place to
compare prices.
The constant drive by
multi-national companies to increase sales and create massive
profits for their shareholders has fueled their expansion throughout the World
in order to secure more markets and even greater
profits. Many have created massive
business cartels - many of whom trade away circumventing
regulation because of their international corporate
structure, whilst paying minuscule amounts in corporate tax. Combined with the
zealous necessity (or by mismanagement) of Government to raise
revenue by stealth, has created a monetary vacuum in a world that's bent on
GROWTH - with the ordinary consumer (along with the poor in
third world countries), 'sandwiched' in the middle of these two massive
'empires'.
As an Island (known
as
'Treasure Island' in corporate circles), the UK has been
literally plundered by both multi-national corporations and successive
Governments over the past 50 years. But it's now time for the ordinary consumer
to fight back - and many are doing just that!
Unfortunately, the
ballot box just isn't working. Whatever Governments' in power they continue to
raise massive tax revenues year after year (any increase is
inflationary!), whilst invoking ever greater regulation by wasting
billions in taxes to placate an ever increasing 'politically correct'
agenda, and by creating 'social engineering' using stealth legislation. When
Government declares a Budget and increases tax revenue by stealth, it becomes
directly responsible for actually increasing the price of
goods and services. But many big businesses have realised that consumer
backlash is in full flight - and are at least trying to
address our complaints. Others have yet to learn, and will ultimately fall foul
by consumer pressure.
Depending upon your
personal grievance or complaint, the phrase 'Rip-Off' is now
being used to describe not only an array of different consumer issues, but
other seemingly non-related issues. In the future, I'm sure this infamous
phrase will be used to describe almost anything we disagree with or are
concerned about, from our dwindling oil & gas reserves and faltering energy
policy, to Global Warming. |
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