Why Finns Still Overpay for Services Despite Economic slipping towards depression

The Paradox of Expensive Services Amid Economic Challenges

Finland is facing one of its most challenging economic periods in recent years. Unemployment has risen to 9.5% in January 2024 (Yle), and industries across the country are struggling. Meanwhile, immigrants and skilled workers find it increasingly difficult to secure employment (Yle). At the same time, Finland has seen a decline in work permits for foreign professionals, further tightening the labor market (Yle).

Despite these economic difficulties, the cost of hiring services remains high. Consumers continue to rely on expensive, middleman-driven service providers, even when independent professionals offer the same services at competitive prices. This raises an important question: why do Finns still overpay for services in a struggling economy?

1. The Trust Factor: Perceived Reliability of Large Companies

One key reason Finns continue to pay high prices for services is trust. Many consumers associate larger, well-established service providers with reliability, security, and professionalism. This trust barrier makes it difficult for independent professionals to compete, even when they offer lower prices and equal (or better) service quality.

However, Finland’s economic situation suggests that this trust might come at a cost. Major industries, including engineering and tech, are seeing strikes and dissatisfaction among employees (Yle). If even large companies are struggling to maintain worker satisfaction, does their higher price guarantee better service?

Solution: Building Verified Reviews & Transparency

For independent professionals to compete, they need to build credibility through verified reviews, clear service policies, and direct communication with clients. Platforms like Valmista help facilitate this process by allowing customers to leave ratings and reviews, increasing trust in individual service providers.

2. Habit and Lack of Awareness: Consumers Stick to What They Know

Another reason Finns continue to overpay is habit and a lack of awareness of alternative options. Many consumers simply go to the same service companies they’ve used for years without exploring more affordable direct-hire alternatives.

A similar trend can be seen in Finland’s labor market policies. Despite the country investing heavily in educating immigrants, many skilled foreign workers remain unemployed or underemployed (Yle). This suggests that the Finnish labor market is slow to adapt to changing dynamics, whether in employment practices or consumer behavior.

Solution: Increasing Awareness of Independent Service Providers

To break this cycle, independent professionals need greater visibility. SEO, targeted advertising, and word-of-mouth referrals can help shift consumer behavior. Consumers also need education on the cost benefits of hiring directly.

3. The Convenience Factor: Middlemen Still Dominate

Many Finns overpay simply because hiring through established service platforms is convenient. Traditional companies offer:

✅ One-stop solutions – They handle everything, from scheduling to customer support.

✅ Standardized pricing – No need for negotiations.

✅ Perceived professionalism – They appear more “official” than independent service providers.

However, this convenience comes at a price. Large agencies take a cut of service fees, increasing the final cost for consumers. Meanwhile, independent professionals offer more personalized services at lower rates—but they struggle to gain exposure.

Solution: Making Independent Hiring Just as Convenient

To compete, independent professionals need easy-to-use booking platforms, secure payment systems, and trust-building mechanisms. Valmista, for example, allows consumers to hire verified service providers directly, without agency markups—combining affordability with convenience.

Conclusion: Is It Time for a New Service Economy in Finland?

🔹 Rising unemployment, declining work permits, and labor strikes indicate major shifts in Finland’s economy.

🔹 Despite financial struggles, Finns continue to overpay for services out of habit, trust in big companies, and convenience.

🔹 Independent professionals provide the same services at lower prices, but they lack visibility.

🔹 A shift toward direct hiring and independent service providers could make Finland’s service economy more cost-effective and sustainable.

💡 The Next Step?

It’s time to rethink how we find and hire services in Finland. Instead of relying on overpriced middlemen, supporting independent professionals could lead to a fairer, more affordable, and flexible service industry.

🚀 If you’re a service provider, join Valmista.com today and take control of your work!