1. #1
    Unregistered

    Does the company fixes the MRP of a product or the intermediate through which it reaches the local shopkeeper?

    I am taken up Finance in my MBA course. Our professor has told to take up a project and present it. I am thinking of taking this concept as my project. Because I recently I bought a dongle whose price was 2900 but the shopkeeper sold it to me at 1450. It was a profitable deal but how can their be so much difference between the MRP and the selling price? Can you please clear my doubt.

  2. #2
    chikky619 Array
    Join Date
    Aug 2013
    Posts
    56

    Re: Does the company fixes the MRP of a product or the intermediate through which it reaches the local shopkeeper?

    Basically for a branded products the company itself prescribes the prices since the intermediate buys the goods in bulk quantity then he will get the goods for cheaper prices and then when he sells the goods then he will sell with the price that is on that particular good or evee he gives discount on that product.


    If you consider the business like saree shops then the price will be fixed by the saree shop owners itself these shop owners sticks the price tags to the sarees.


    So, like wise the business process continues.

  3. #3
    bonomali Array
    Join Date
    Feb 2013
    Posts
    984

    Re: Does the company fixes the MRP of a product or the intermediate through which it reaches the local shopkeeper?

    Hello Fiend,

    Well, for your information MRP stands for maximum retail price. MRP is that price beyond which a shop keeper has no legal right to charge customer to pay that extra amount. For instance if the MRP of a product is Rs.10/- then you can pay either Rs. 8 or Rs.10/- (maximum amount) and you will not apy any extra amount. Now, lets's come to your question the shop keeper is charging a Rs.2900/- product only at Rs. 1450 because he is not taking any more commission involved the actual price of Rs.2900/-. By doing so he is getting only a small amount of profit.

    You did not metion whether the shop keeper gave you a printed bill or a hand bill. Generally, the shop keeper tends to charge very little when they give you hand bill and not printed bill. If you asked for printed bill then may be he would charge a bit higher price compared to old price.

    Bye.

+ Reply to Thread

Similar Threads

  1. Replies: 0
    Last Post: 21-07-2013, 01:39 AM
  2. Replies: 6
    Last Post: 14-07-2013, 08:28 PM
  3. Replies: 1
    Last Post: 15-05-2013, 05:30 PM
  4. What is the difference between service company and product company?
    By Unregistered in forum Professional Discussions
    Replies: 1
    Last Post: 17-11-2012, 06:46 PM
  5. Replies: 2
    Last Post: 02-10-2012, 10:29 PM