Switzerland has remained comparatively expensive. A known reason for some price differences is geographically discriminatory wholesale pricing, a scenario where product owners charge Swiss retailers higher wholesale prices than those they charge retailers in other markets. Sometimes this is done via local wholesalers that are given exclusivity to sell in Switzerland. For this theory to hold, there would need to be some impediment to price competition.
Interestingly the price competition that appears absent from the food, clothing, magazines, cosmetics and toy products surveyed, is alive and well for electronic products which are generally cheaper in Switzerland, as differences in VAT would predict. To provoke price cuts, Swiss consumer organisations suggest strengthening laws relating to cartels and more parallel importing.
They might be on to something. In summary, high Swiss prices are largely down to a lack of competition, one sided, sometimes exclusive, territorial wholesale agreements on some imports, and import restrictions on products in protected industries, farm products in particular.
Unfortunately, these are hard to fix. For more stories like this on Switzerland follow us on Facebook and Twitter. So I do not see how Swiss supermarkets are going to be able to cut prices without an associated decrease in operating costs.
As an Australian doctoral student who moved to Geneva in , and is paid an Australian scholarship that after exchange and foreign transaction costs is less than 20K CHF annually to live on, the prices have sickened me. They are simply beyond my means. It cost CHF a month and was heavily subsidised because it was part of a special charity initiative to help a disadvantaged female on a low income to secure housing. When I applied for the apartment with a carefully written letter of motivation, a carefully drafted letter of reference and recommendation by my academic supervisor, my police certificates that showed I had no criminal record in Australia or Switzerland, proof of income etc etc I was asked what my other sources of income were.
I explained that I had none and this was why this special housing scheme for poor females was so appealing to me. They advised me that my income was too low for them to rent this place to me.
In Geneva, even poverty has a minimum threshold level. Salaries are not the same in all cantons, so one can not compare and justify the salary scale in Switzerland. Specially Canton Ticino is the lowest salary recepients.
Take-home salaries are also not comperable between CH and the other European countries. In rest of Europe, an employee should not pay in private for his obligatory health insurance. This costs approx.
The average swiss indeed lacks the concept of competition hence the Suppliers get away with it. Remember the CHF soaring in value but the gains only slowly benefiting Customers.
And the VAT of 8 vs. The Consumer Organisations need to wake up! And Custom Protection allows the local products to remain highly priced. Think olive tomatoes. I think Agricultural Subsidies should be in History. The input costs faced by Swiss retailers and producers other than direct staff costs are also very high. Insurance, property rent, energy, legal costs, freight etc.
It all adds up. As mentioned, Switzerland does have some cost advantages, such as lower staff costs and VAT, so there is potential offset. Some Swiss retailers seem to be getting high prices forced on them by wholesalers or the brand owner i. We are looking for research on this. When we find it we will write a piece on it. Many thanks for your comment. What on earth is meant by this? In many countries there is a form of hidden social security charges. In Switzerland this hidden charge is low.
In France for example it is high. Taking some approximate numbers the real rates are different and vary by region it works like this:. If a Swiss employer pays someone a salary of 4, per month it will cost them 4, And the employee will get paid 3, before tax. The difference is social security charges or AVS.
What is effectively happening here is the employee is getting paid 4, but only receiving 3, In France for example, the difference between the cost to employer and take-home pay is much higher. His experience of the daily challenges faced by relocation consultants flows directly into the training courses designed and led by the Packimpex Academy. Discounts and saving money in Geneva. Shopping in Geneva. Swiss Culture. Shopping in Lausanne.
Cost Of Living in Geneva. Shopping in Zurich. Hello Switzerland fills a huge gap for those who are keen to integrate but find it difficult due to the language barrier. Contact Us. Hello Switzerland Relocation Guides Guides. Although salaries are high and taxes low, Switzerland is one of the most expensive places to live in the world.
Read more to find out where your money will go and where you can save. Cost of living in Switzerland? Book a Guidance Call Get expert knowledge and solutions to answer all questions related to researching, relocating and residing in Switzerland.
Average monthly expenses in Switzerland Although salaries are higher and taxes lower than the European average, a large portion of gross income goes towards obligatory health insurance and other deductions. Take control of your relocation. Related Articles. Mind you Feldschlossen beer cost similar then. Bread slightly dearer now. It depends what you live on.
Your use of this service is subject to our Terms of Use and Privacy Policy. What are you looking for? Compare Geneva with:. Summary about cost of living in Geneva, Switzerland : Family of four estimated monthly costs are 5, This city had entries in the past 12 months by different contributors. Last update: November Sources and References. What are sources and references?
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