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The subject of pricing in Spain is very topical at the moment. I was talking to a few people yesterday who were all agreeing that it seems that most businesses here on the Costa del Sol, particularly restaurants and others in the food and drink industry seem intent on raising prices.
Having just returned from the UK, where it seems that every business is constantly having to think of ways to promote their goods and services by embarking on radical promotions and discounting, I am utterly amazed that here in Spain, the opposite seems to be true.
I´ve been told that this is a Spanish thing – i.e. their way of protecting their margins is to increase prices in the hope of attracting more revenue rather than discounting in the hope of attracting more customers.
In these harsh economic times where everyone is after a bargain, whether it´s a slice of pizza or a villa in Marbella, I´m not at all convinced that this strategy will work.
The truth is that we are all tearing our hair out here on the Costa del Sol, as we see greedy (or stupid) business owners increasing prices, yet presiding over empty shops and restaurants. If only they would be creative and offer us what we all want – quality goods and services at a great price - we would flock to them in our droves.
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