Lower euro: Are magazine prices also falling?

Random examples that are not the exceptions, but the rule: Auto Bild Klassik costs 4.20 euros in Germany. In Switzerland: 8.50 francs. A Geo buyer pays 7 euros in Germany and 13 francs in Switzerland. The German Brigitte reader gets her magazine for 3 euros, her Swiss counterpart 5.50 francs. Der Spiegel costs 4.60 euros in Germany and 7.40 francs in Switzerland. Price differences that have repeatedly caused incomprehension among Swiss consumers in recent years. And which are even more difficult to understand in view of the current exchange rate development: The euro exchange rate has lost 16 percent against the franc since the lower limit was lifted. One euro is currently equivalent to around one Swiss franc.

A grievance that consumer protection has been fighting against for years. Compared to neighboring countries, Swiss prices are "exorbitantly high", Sara Stalder, President of Swiss Consumer Protection SKS, told Werbewoche.ch. In recent years, the SKS has campaigned for a revision of the Cartel Act, which would have led to the opening of market channels. "Unfortunately, parliament decided in the fall that no legal measures were needed," Stalder regrets.

The German publishers are responsible for the prices. They set the prices. The company 7 Days Media supplies 5000 Swiss sales outlets with international press products. The German press distribution company PVG acquired Valora's distribution business in May 2014 and renamed it 7 Days Media Services (Werbewoche.ch reported). When asked by Werbewoche, the company emphasized that as a distributor it has no influence on prices. The publishers print them on the magazines and there is nothing we can do about it.

Publishers offer little hope

Demand from German publishers. In addition to the various versions of Auto and Computer Bild, Axel Springer also publishes music magazines such as Rolling Stone and Musik Express. The publisher is keeping a low profile. According to press spokeswoman Svenja Friedrich, the company generally keeps a very close eye on currency fluctuations in all relevant markets. "Whether and when there will be adjustments to the distribution of our titles in Switzerland is something we have to leave open at the moment."

Gruner+Jahr, publisher of numerous publications sold in Switzerland, also holds out little hope of price reductions in the near future. Magazines such as Neon, Brigitte, 11 Freunde and Geo. The publisher cannot react flexibly to exchange rate fluctuations at short notice - in either direction. However, in the case of general copy price changes for the magazines, the exchange rate is "critically taken into account" when setting prices abroad, says press spokeswoman Suntka Halen. She explains the generally high Swiss prices with higher transportation and distribution costs. In addition to distances, the structure of the Swiss press market also plays a role, for example with postal delivery prices and higher costs for payment transactions in subscriptions or logistics costs in retail. In some cases, production costs are also higher, such as for the Swiss special section of GEO. In addition, the publisher also bears the local costs in Swiss francs.

In other words, it is unlikely that anything will change soon at Swiss newsstands. Even if a magazine costs less than half as much across the border as it does here.

Renewed initiative promises improvement

However, consumer advocate Stalder is far from giving up hope: "Of course we will continue to fight: we are calling on all retailers to reduce import product prices immediately. Certainly the 15-20 percent exchange profits for the time being and then, of course, this unjustified 'Swiss surcharge'." We are also campaigning for the Parliamentary initiative of Councillor of States Hans Altherr will now be successful in parliament. "A slimmed-down revision of the Cartel Act, so to speak," says Stalder. According to the text of the initiative, the aim is to put a stop to "excessive siphoning off of purchasing power by foreign companies". It remains to be seen whether and when an amendment to the Cartel Act will have an impact on print media prices.

Thomas Häusermann