Monday, April 18, 2011

INDIAN TRADING METHODS ABOMINABLE OR -NOT ?

I bought an anti-glare screen guard for my laptop lenovo 3000 n100, yesterday.
Purported Brand : Olinvon.

Manufacturer : TJK IMPEX, 105, Hammer Smith Indl., Mahim W, Mumbai 16. This is said to be in collaboration with Messrs. LEA HIN PTE. Ltd., Singapore.

This screen guard is said to be 'The Scratch and Squint Proof Screen Protector" as per the wrapper.

So far, so good.

It has a printed maximum retail price of Indian Rupees 200/-. A good friend of mine fetched it for Rs. 50/-. He has told me that
this is normally sold in shops for Rs. 150/-. There are at least two intermediate markets (wholesale - semi-wholesale) between Mumbai and my place. We can assume that these intermediaries keep a margin of at least Rs. 5/- each, total comes to Rs. 15/-. We have to presume that the manufacturer sells to his first distributor at Rs. 35/-. Thus, Printed maximum retail price is nearly five times more than the manufacturer's first sale price.

It is true that by printing a maximum retail price the manufacturer is complying with some statutory requirement. The statutory requirement may be aiming at protection of consumers.


The situation is quite obvious. The intermediaries are selling the product at a price which is determined by their whims and fancies or the haggling abilities of the buyers, whichever is stronger at that particular market and time.

The manufacturers and traders may have their own problems. But, yet, what makes them to be so slippery?

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