Third year on the run - what are the prices like?

[BIG brez]

Hi

TD please don't get me wrong, Ithink CVO is a great place otherwise we would not be returning for a third year

What I was trying to ask in my original question but it I might not have made myself clear was:

Obviously the exchange rate is poor again this year so I wondered if the pricing in CVO had gone down/ up or stayed the same as a result.

I get what you are saying about the drop in numbers of visiters in general, but if CVO has a reputation for being a good value resort surely this would encourage more visitors thus boosting the local economy.

For me it is alot of money to spend the best part of £4500 for a fortnight holiday, but can you put a cost on happines.

Yeah you can £4500

Best wishes (and much jelousy that you get to spend longer there than me)
Big brez

[shanagarry]

On the points raised about prices - how does Carvoeiro rate against other Portuguese resorts (Villamoura, Albufeira, Praia do Rocha, Cascais etc) and against Spanish resorts (not the tat ones)

In brief - where else can you get to in a sensible time (2-3 hours), enjoy good weather (hopefully) and at an affordable price - that is better then Carvoeiro

I'm basing that question on the suggestion that Carvoeiro may not be affordable

[shanagarry]

The restaurants we regularly use in and around the village (Maximes, Villa Medici, O Stop, Julios, Vale do Milho restaurant, Mona Lisa have not altered their prices in 2 years - so I guess they have reduced. We use O Patio on occasions and they have definitely increased their prices by 23% - but it's a place we like and that's the price we have to pay.

The exchange rate thing is a lottery and while it has a bearing on the price you Brits pay - it has no bearing whatsoever on the cost to the Portuguese business owner - they have to decide on being competitive and making a margin.

[td]

I agree £4,500 for a holiday is a lot of money - especially in the current climate - but you could not have picked a nicer place. The many suggestions for restaurants under this and similar topics should ensure variety mixed with tradition. The food prices are not the problem - watch the booze component and you won't go far wrong.

Have a great time

[ditzy]

On the points raised about prices - how does Carvoeiro rate against other Portuguese resorts (Villamoura, Albufeira, Praia do Rocha, Cascais etc) and against Spanish resorts (not the tat ones)

Praia da Rocha is extremely competitive and most restaurants have very low prices, be it food or drinks. Again, it brings us to the cost of businesses' overheads in Cvo.

[EMM]

Its " simples " the bigger the resort ( ie Albufeira , Pria Da Rocha ) the more competition the lower are some prices, standards and quality in Villamoura you have the " snob value ".
CVO is somewhere in between and I do detect a sense of complacency with a lack of variety and new ideas.

Lets hope that the newer out of viilage centre ventures such as those in Monte Carvoeiro do bring something new to the resort.

The Black Stove had an opportunity but CVO is not big enough for an Irish themed bar of that size hence it feeling half empty for much of the summer.

[Globetrotter]

The restaurants we regularly use in and around the village (Maximes, Villa Medici, O Stop, Julios, Vale do Milho restaurant, Mona Lisa have not altered their prices in 2 years - so I guess they have reduced. We use O Patio on occasions and they have definitely increased their prices by 23% - but it's a place we like and that's the price we have to pay.

The exchange rate thing is a lottery and while it has a bearing on the price you Brits pay - it has no bearing whatsoever on the cost to the Portuguese business owner - they have to decide on being competitive and making a margin.

This. When their numbers dip due to their customers not being able to afford the product, regardless of the cause, then it just might be a good business decision to cut prices (as well as costs).

What we have seen is the inverse, however. Not as many customers so prices go up to take advantage of the smaller numbers. For us the end result is to just go elsewhere. This philosophy applies to much more than just restaurants.

[td]

There is perverse logic at work in the world of business at present - that defies logic - price increases.

During 2009 car prices in the UK rose by an average of 11.2% and guess what - they sold more cars. The 'scrappage' scheme was partly responsible but generally car sales improved. The previous year was a disaster despite heavy discounting. This year has started with a similar flourish to 2009. The cynic in me detects that while the newly increased price will be baulked at - by offering a discount to the previous level will result in an 'improvement' statistic.

Supermarkets hid their price increases behind the return of VAT to 17.5% - the cost of fuel continues to creep upwards - Airfares - it's everywhere and will continue. The government is powerless to intervene as any intervention will be countered by demands for state compensation and anyway they need the tax revenue. The penalties to the organisations who ignore requests for price restraint is in the form of 'windfall taxes' - which invariably have little or no impact - because such organisations employ 10s of 1000s of people and threaten to take the jobs to other countries. Stalemate.

Similarly, in Carvoeiro with restaurant/supermarket/bar prices - increasing the prices to a lesser number of customers might be a business strategy. Reduced numbers of customers will result in reduced income which could be offset by reduced staff costs (maybe) and with an increased price (however small) - it makes business sense. Remember the largest cost in many businesses is people - the reason behind the increasing numbers of unemployed - and the actions being taken to cut those and all the associated costs is gathering momentum.To attract inward investment every business/country must be competitive and the UK, Portugal and many others aren't even close so don't expect cheap anything, anytime soon.

The post election fallout here in the UK is going to make the current recession look like a garden party - with taxes of all shapes and sizes being levied to repay the national debt and that does not bode well for job or wealth creation

As a business owner (regardless of its size) balancing your income and expenses to meet your commitments is the 'name of the game'' and if getting the balance right requires some radical action - that's what's going to happen. Right now it's the calm before the storm

[shanagarry]

Globetrotter - if reducing your prices means you make a loss - that decision to cut your costs could seriously impact your service/product offering. Should a business decide to 'weaken' its product in an attempt to attract more business (because it has cut costs) - what's the point in that

The comments made by td - seem to sum it up for me. Price reductions and sales are a device to shift large quantities of 'tat' - designed to get people through the door in the hope they will be convinced to buy the more expensive stuff. If the product is of good quality - why cheapen it when you may be able to enhance it and charge more. After all we are a capitalist society - aren't we

[widge]

The comments made by td - seem to sum it up for me. Price reductions and sales are a device to shift large quantities of 'tat' - designed to get people through the door in the hope they will be convinced to buy the more expensive stuff.

Sometimes the "sale" is essential just to turnover some cash to pay the bills. You can't pay the rates or the utility bills with stock; you have to convert it to cash - regrettably sometimes at a loss.

[shanagarry]

Widge - remember the old adage:

Turnover is vanity - profit is sanity - if the business is continually living from 'hand-to-mouth' in that manner - it doesn't make for a pleasant existence

[widge]

Agreed Shanagarry but for many retailers, bar owners and restaurateurs that is their plight.

[shanagarry]

I'm not being sanctimonious about it as I have been there - but operating at a loss makes no sense!