Online shopping baskets with the same products from Austria and Germany are currently being shared on social media. It turns out that DM’s goods are cheaper in Germany. How can that be? krone.at did the test and filled a shopping cart at dm.de and dm.at.
It contains a hair shampoo, a hairbrush, two insect repellent sprays (one specifically against tropical insects), brush heads for an electric toothbrush, razor blades and an eau de toilette. Where in Austria 104.50 euros must be paid without shipping costs for these seven products, in Germany that is only 82.15 euros (as of 1 June 13:15). The difference is therefore 22.35 euros. That is almost a fifth of the total price in Austria.
Big differences in eau de toilette and razors
The biggest price differences in the sample shopping basket are for an eau de toilette (30 ml) from Nivea and for Gillette razor blades. Twelve of these blades cost 24.95 euros at dm.de, but 28.90 euros at dm.at. The eau de toilette is available for 22.95 euros and 29.90 euros respectively. Incidentally, there are different rules for shipping per country: in Austria this is free from 49 euros with a corresponding account, in the neighboring country only from 59 euros.
One approach to explain the price differences in the drugstore and food trade between Austria and Germany is the different VAT. However, this is only part of it. Since there is currently speculation about other factors on social media channels such as Twitter (see tweet below), krone.at asked the press office of the drugstore chain. “It is true that our prices are not 1:1 identical to those of dm Germany. Calculated over the entire range, however, the Austrian price level is only a few percentage points above the German (…)”, says spokesman Stefan Ornig.
suppliers, personnel costs, etc.
One reason for the often higher prices is that Austria has smaller sales areas than Germany. As a result, fixed costs such as energy and logistics are higher. In addition, the suppliers work with different conditions and purchase prices. “Almost all of our suppliers are Austrian companies or affiliates,” it says. Other reasons can be different tax and excise burden depending on the country, but also differences in personnel costs.
So does it make sense to order in Germany for cost reasons, for example to a fake address or to friends in the neighboring country? In principle, it is possible to order from dm.de and have the products delivered to Austria, for example by a shipping service. However, this is an isolated phenomenon, says spokesperson Ornig. “After all, that also entails administrative work and costs,” he notes.
No higher profit
According to the company, it operates in both countries with a profit margin of just over one percent of sales. “It is therefore by no means the case that the revenues in Austria are greater than in Germany”. The drugstore chain dm increased its turnover in Austria by almost five percent in the past financial year. It was more than a billion euros. In Germany, it was almost 13.6 billion euros in 2021/22, with more branches and staff.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
