The hand that prices the cradle . . .

PriceWatch: The substantial disparity in prices between O2 stores in the UK and the Republic has been highlighted by a Cork-based reader, writes Conor Pope

A cradle which allows users to connect an XDA II phone and pocket PC from O2 to a computer and to charge the device costs anything between €22 and €43 in the UK, yet, as Joe Mannion discovered recently, Irish users are expected to pay €79.99 for the same device. He was quoted this apparently exorbitant price in an O2 store in Cork and contacted PriceWatch to find out how the company can possibly justify the charge.

It's not just the O2 cradles which cost so much more in the Republic. If you have an O2 contract here and want to upgrade to an XDA II, you can expect to pay between €509 and €630. A visit to O2's online store reveals that the same upgrade in the UK will cost only €361.

A spokesperson for O2 defended the extra charge for the XDA II cradle by pointing out that O2 in Ireland and the UK are separate companies and both have to buy the cradles from a third party. The UK company can, she said, sell it cheaper because it can buy the product in greater bulk.

"We can't order as many because the market demand isn't there," she said. "When you buy in bulk it is much cheaper." Cheaper, certainly, but half the price?

With regard to the higher prices for the XDA II handsets O2 said: "While O2 Ireland is part of a European group of companies, we nonetheless price and make available our handsets according to Irish market conditions. One of the factors that influences the price of handsets is the availability of subsidies. At O2 Ireland, we have decided to remove handset subsidies, making the initial purchase cost higher. The UK market place is a heavily subsidised market, Ireland is not. However," the statement continues, "we have counterbalanced this by offering more free call value to our customers per month and by maintaining very competitive rental charges."

What's more...

Before Christmas Gwenda McInerney bought a jumper in a Mango store in Dublin at a cost of €21.90. It was a gift so, as she was wrapping it, she peeled off the price tag and left the label on the item in case the recipient wanted to return it. Underneath the price tag she found the retail price in Spain and Portugal was just €12.90. "Surely the exorbitant taxes in this country cannot be that much," she asks.

Clarification: Some prices given for razor blades last week were for Mach 3 Turbo razor blades and not, as intended, lower priced Mach 3 blades. Mulligan's Pharmacy in Waterford charges €15.75 for Mach 3 blades and €18.90 for the Mach 3 Turbo. The price of €16.80 quoted for Boots on Aston Quay and Tesco, Clarehall also referred to Mach 3 Turbo blades.

If you notice a significant price increase or discrepancy, let us know by e-mailing pricewatch@irish-times.ie