MRP and Discount Part 2
In my previous article I asked some questions on MRP and Discount. In this article I find out some answers.
What is MRP? It is the uper- limit of price of any item, it means maximum price that a retailer can take from customer, MRP is inclusive of all i.e. cost of manufacturing, taxes and profit. Why MRP is marked on an article? Because government asked manufacturers that very article should marked MRP on it. Who decides the MRP? MRP was decided by manufacturer, distributors and some of retailers. On MRP margin of retailers is 10% to 15%, few smart shop keeper to maintain and expand clientele gives 5% discount to customer, if customer make payment through credit card they charge 2% from customer, now out of 5% discount 2% is again taken by retailer, if customer ask for carry bag they again charge money from customer. In this way margin of retailer is fix. Another ex. Cost of Britannia biscuits was originally priced at Rs.10 on which we got a 5% discount, a new pack with the same twice quality has been introduced, but now has been priced at Rs.22 instead of Rs.20 on which a Re 1 discount has been given.
-