October 23, 2003

Mop Spelled Moppe is Still Mop, No?

POST #    471

Moppe - $8.99 in the United States. 59% more in Austria.

Swedish statistician Gabriel Thulin found that Ikea products can vary substantially in cost from country to country. This may not come as a surprise, since companies often vary cost from area to area depending on many factors. He devised an index called the "Ikea Index," which compares 26 Ikea products in 15 countries. The report found that consumers in the U.S. pay the least and Finland pays the most. Sure, currency may account for some of the difference, right? Nope. There is a variation in countries that share the Euro as well. The Moppe cost s 39% more in Austria than in Germany, and they share a border too! Why not just drive to an Ikea across the border then? If you're buying a Billy bookcase in Belgium, you're paying 33% more, but if you go across the border and drive it back, your cost savings is wiped out. This is with an Ikea right across the border too! I don't think Ikea is going to change their practices, nor do I necessarily think they should (instructions are a whole other issue), but it's just interesting info.

The model is based on the Big Mac Index by The Economist.

The NY Times on the Ikea Index (including a chart).

Posted by tien mao in Random at 1:27 PM



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