The concept of MRP really confuses a lot of people. It is most pre-dominant in India. Most people think that they need to pay based on the MRP rate tagged on any product. Many shopkeepers are reluctant to sell anything below the MRP. In my younger days, I used to always think that this is probably the least value that a product could be sold at. I remember some shopkeepers sold Pepsi for 6 INR when the actual MRP was just 4 INR. Once when I asked one of the shopkeepers, he said since he was providing a service at his shop he was entitled to charge an additional service tax on the product. What a pathetic excuse for cheating, isn’t it? I was quite young and thought that it was probably the way it had to be. Later on I came to know the true fact behind MRP.
MRP is the maximum retail price of the product. No shopkeeper is entitled to sell anything over the MRP value unless he is providing an additional service in his shop. This has to be an entertaining service like in restaurants or hotels where people can sit and enjoy. A shopkeeper always buys from the wholesale market or directly through his dealers. These transactions are done in bulk. So let’s assume that the shopkeeper buys multiple Crates of soft drinks. One whole crate of 50 soft drinks of size 500 ml costs him around 400 INR. Let’s assume that the MRP on each soft drink is 15 INR. If the shopkeeper sells all 50 bottles at the MRP price then he would earn 750 INR. This means that he earned a profit of 87.5 % by selling at the MRP price. He is already earning a good amount of profit, so realistically he is not entitled for anything more than this.
Have you been amazed when some shopkeepers offer you things below the MRP price? You really don’t need to be. If you see the above example then there is already so much amount of profit that even if the shopkeeper sells a 4-5 of bottles for free he will still make handsome profit.
Never be confused about the MRP and always buy products from shopkeepers who sell way below the MRP price because the rest are just trying to mint more money at the cost of poor customers.
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MRP is the maximum retail price of the product. No shopkeeper is entitled to sell anything over the MRP value unless he is providing an additional service in his shop. This has to be an entertaining service like in restaurants or hotels where people can sit and enjoy. A shopkeeper always buys from the wholesale market or directly through his dealers. These transactions are done in bulk. So let’s assume that the shopkeeper buys multiple Crates of soft drinks. One whole crate of 50 soft drinks of size 500 ml costs him around 400 INR. Let’s assume that the MRP on each soft drink is 15 INR. If the shopkeeper sells all 50 bottles at the MRP price then he would earn 750 INR. This means that he earned a profit of 87.5 % by selling at the MRP price. He is already earning a good amount of profit, so realistically he is not entitled for anything more than this.
Have you been amazed when some shopkeepers offer you things below the MRP price? You really don’t need to be. If you see the above example then there is already so much amount of profit that even if the shopkeeper sells a 4-5 of bottles for free he will still make handsome profit.
Never be confused about the MRP and always buy products from shopkeepers who sell way below the MRP price because the rest are just trying to mint more money at the cost of poor customers.
http://expertscolumn.com/content/what-did-you-learn-your-grandfather
http://expertscolumn.com/content/skills-some-innovative-project-managers
http://expertscolumn.com/content/do-schools-play-vital-role-education
http://expertscolumn.com/content/science-must-teach-proven-facts-and-not-perceptions
http://expertscolumn.com/content/horror-movies-really-excite-human-minds
http://expertscolumn.com/content/do-we-need-censorship-social-media
http://expertscolumn.com/content/peace-and-non-violence-must-be-mandated-all-and-not-just-few
http://expertscolumn.com/content/how-do-you-avoid-phone-calls-graciously
http://expertscolumn.com/content/how-make-relishing-aloo-paalak-paratha
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