GOOD EXAMPLE FOR HIGH M.R.P. MARGIN ALLOWED:
The 3 attachments show the M.R.P.by the manufacturer as Rs. 120 / and the Selling Price [S.P.] by the trader Rs. 95 /. for the Commodity "Fortune "Rice Bran oil.
So 120 from M.R.P. to 95 is a discount of 20 % is given by the super stores .
When I asked the manager how is it possible , he said that they operate on a fixed margin with which they are satisfied and said customer satisfaction and service is our motto. Though it sounded a bit of a sales Jargon , what we surmise is that the margin allowed is too big . In this case I know this trader is ready to share with the customer the benefits as well as establish contact with customers . BUT THERE COULD BE TRADERS WHO LIKE TO GRAB THE ENTIRE MARGIN PERMITTED BY THE M.R.P. RULES.
The reason why I put up this example is to make the circle members understand that the trader is not wrong when he charges Rs. 120 / for the the rice bran oil .
ENTIRE RESPONSIBILITY WRESTS ON THE CONSUMERS TO GET A GOOD DEAL FOR THEIR MONEY . more
So 120 from M.R.P. to 95 is a discount of 20 % is given by the super stores .
When I asked the manager how is it possible , he said that they operate on a fixed margin with which they are satisfied and said customer satisfaction and service is our motto. Though it sounded a bit of a sales Jargon , what we surmise is that the margin allowed is too big . In this case I know this trader is ready to share with the customer the benefits as well as establish contact with customers . BUT THERE COULD BE TRADERS WHO LIKE TO GRAB THE ENTIRE MARGIN PERMITTED BY THE M.R.P. RULES.
The reason why I put up this example is to make the circle members understand that the trader is not wrong when he charges Rs. 120 / for the the rice bran oil .
ENTIRE RESPONSIBILITY WRESTS ON THE CONSUMERS TO GET A GOOD DEAL FOR THEIR MONEY . more
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Oct 31
There is no reason to be complacent. As I pointed out earlier in more than one of my comments, I would like to repeat that the MRP printed on edible oil pouches, tins & other containers of all variety and companies are inflated by at least 20% to 35% of their actual retail prices. If you are lucky enough you will get it at actual price or otherwise you will be duped by Rs.10 to Rs.15 a unit of one litre but still it will cost less than its printed MRP. This is so in the cases of electrical and electronic items as well as well as in many other cases. If you want, you can have a try even in a small shop. In this way the customers become joyous for getting artificial discounts. Since I myself at the age of 70+ go to the market personally and bring our required food grans and grocery from shops giving best quality at reasonable prices and know the difference. So, writing MRP has become a ritual rather than compliance of government guidelines, may be because of the concerned government agencies' negligence and prevailing corruptions. more
Jul 25
The goods are sold through a retail channel comprising of whole sellers and retailers. There are higher intermediary and transportation costs involved in this channel. Large super stores buy directly from the manufacturer in large quantities and have fast product rotation. The distribution costs are lower. Same product sold through a small retailer in a small town would require higher margin. more
Jul 22
In my opinion MRP should be replaced with MCP which means Maximum Retail Price should be changed to the Maximum Cost Price, which includes the cost of Raw Material, Labor Cost, Overheads like Electricity, Water & other charges like uniform, benefits given to employees. These overheads should be computed from one month's production Cost divided by the no. of employees. So even a small child will also know that the total cost to manufacture the material is at least that much which is mentioned in the label & on that price the GST has to be paid & then if the seller decides to giver discount it is his wish bit the seller will have to pay GST for the full amount. more
Jul 22
I think for MRP fixation Govt should come in to picture.It should not be more than Manufacturing cost plus 50%.Let Govt study what is being practiced in other countries. more
Jul 22
