18th December 2004

Comparing goods on the Internet with High Street prices has never been easier. Simply keying 'compare prices' into the UK page section of www.google.co.uk opens up opportunities to make substantial savings. Boosted by a strong Pound, allowing imports to flood into the UK (mostly from China), I've found many goods are far cheaper than they were a year or two ago - especially consumer electronics such as DVD players, wide-screen TV's and computer components.

However, according to the Daily Mail newspaper, British shoppers buying on-line are finding they're being charged much more for goods, such as electrical items and DVD's, than Web customers on the Continent. In addition, they claim that UK consumers are being ripped-off by some multi-national companies and accuse them of preventing British shoppers who wish to take advantage of the discounts by installing blocks on their websites that prevent customers with a British address buying goods and services at the lower European prices. If found to be true, all the more reason we should perhaps consider joining the Euro rather sooner than later, which may help stop these so-called tactics.

Of course, this comes as no surprise - we've been harping on about the disparity of prices between the UK and the rest of Europe (and the USA) for the past six years!

Comparing prices is one thing, but as I've highlighted many times there are other important factors that must be taken into consideration when comparing prices in other countries other than the UK, such as comparing wages, taxes, interest rates, fuel costs, rents and other infrastructure elements that make up the wealth of a country - but fortunately the European arm of global financial firm UBS based in Switzerland has made a detailed comparison.

Mind you, the UK is no angel when it comes to interest rates, taxes, fuel prices, rental and housing costs, but the UBS 2003 report on "Prices and Earnings" and their "Comparison of purchasing power around around the globe" makes compelling reading. Their analysis compares purchasing power in 70 cities around the world with the aid of detailed surveys on living costs and incomes.

For instance, they compared how long it would take to earn enough money in different countries in order to buy a Big Mac! For instance, the average worker in Nairobi must work more than three hours to pay for a Big Mac, but those in the US cities of Los Angeles, Chicago and Miami barely have to work ten minutes.

You can go to their website and download their reports below:

"Prices and Earnings", a UBS report

Full Media Release in PDF (incl. Charts and tables) 1291 kB

Brochure in PDF: Prices and earnings 2480 kB

Just in case you think I'm letting 'Rip-Off Britain' off the hook - you're wrong. But after all, it's Christmas, and it's Goodwill to all people - at least for the next couple of weeks!!

Happy Holidays - but watch that Store and Credit Card debt!!!

PS: A very useful website if you're comparing DVD, CD or book prices www.123pricecheck.com