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Monday, February 16, 2009

Who will fix up Retail Selling Price?

The attached poster is taken from a photocopy cum flexiload shop at Motijheel. As of today, most of the people in the city know about this trend. Now, lets have a simple math with an assumption that total 40% of the 2.4 million GP subscribers will charge Taka 40 at a time. That means 2.4 x 0.40 = 9.6 lac subscriber will pay additional 9.6 lac taka at a time to charge their account. I do not want to further proceed with the question, what will be the extra money paid in a month or in a year.... I just stop at this point and let the reader ponder on it.

Lately, smokers of B&H and B&H Light already know that, if you buy a single stick of any of the two brands, you do not get back Tk 0.50. On a single transaction, it may seem pretty low. However, when you estimate the figure on whole market and monthly or yearly basis, then the figure matters!!

Whose benefit is this, when the trade is getting more profit than fixed by the company? First of all the retail traders are making the profit. However, if the scenario is explained in a different angle? Suppose, the companies take such strategy wittingly (like B&H) so that, it favors retailers not to give back fifty paisa and allows the retailer to pile up this. Thus the company strategy favors the ratailers without even increasing the retail price!! Therefore, brand image does not get upset but the retailers remain happy even at a lower profit rate offered.

In both of the above cases, two multinational companies are quoting one retail price but the product is selling at another price. My humble question to you all is: whose responsibility is this to affirm the Retail Selling Price at par with the company's quoted retail price? and how?



7 comments:

T.M. Abdullah al shafi said...

Nice initiative, but might need more posting and attention.

All the best,

T.M. Abdullah al shafi
Executive Editor
newsNet
http://www.newsnetbd.com

Olpo.Kotha said...

Thanks. Let us see if really it is discussed vibrantly among this community.

Red & Green said...

Your observation and analysis is another example of the fact that how helpless and unaware consumers in Bangladesh are. The companies, the middlemen (the retailers and other intermediaries) are doing their best to take full advantage of this ignorance of the ordinary consumers. Are there any laws in Bangladesh by which you can file a case against companies allowing this practice?

Moderator001 said...

@Red&Green: Consumer Rights Protection Act has been adopted as an ordinance by Caretaker Govt and shortly is expected to be passed by this parliament as a law. I think the upcoming law may help us to find a way in this regard.

Mahboob Maverick from Nielsen said...

We still have a long way to go in terms of rules and regulations, above all, the entire population needs to reach a certain morale level before we can actually impose social welfare practices.
As of now, the only defense is to make sure that you dont support and fall for mal practices and educate others about it.

B A p P i said...

The same goes for CNG stations. We, consumers, must learn about our rights. I would like to emphasize on using lower denomination of Taka, i mean, instead of paying in larger 'Taka Notes', we need to pay in 'Shorter Notes'. E.g. After filling your CNG tank, your bill may Tk. 123.35. You will be asked to pay Tk. 124. But, you may find you have Tk. 100 + Tk. 20 + Tk 10 in your wallet, along with couple of Tk 500. :) Even if you pay Tk 130, the 'CNG pump wala' shall say 'Mama dui taka bhangti nai'. That means, you are actually paying Tk. 125. Whereas, the simplest formula should suggest to 'round up' the figure to its nearest i.e. Tk123. What can we do in this situation? Nothing, but to tolerate and hope someday it may end.

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