If bargaining at MRP makes you sure of buying products at best prices?
Every product is supposed to be sold with MRP printed on the products or its packing. MRP is a price that retailer can sell at its maximum which includes VAT/Taxes, packing, transportation and any other additional charges. Selling any product more than printed MRP is illegal. In fact it is always adviseable to bargain and negotiate the prices less than MRP.
There are certain category of products where the MRP is very exaggerated even to the tune of 100%. The traders have been announcing the scheme buy 1 and get 2 free etc. etc. The readymade garments is a glaring example. Now the question is if the companies can announce a discount of 50-60% and I am quite sure they must be making profit of around 15-20%. If we assume they are not making any profit during the discount season that means they may be making heavy profits when they are selling products at their MRP. The question now arises do the customer believe or be sure that he/she purchased the product at the right price. To what extent the prices could be bargained. It is also a fact that now a days the selling has changed its concept from off season discount to all the 12 months discount.
Why there should not be a mechanism which can give confidence to the buyers of having purchased at the right price. The category of the item that I thought of having very high profit margins and MRPs are exaggerated disproportionately (unimagineable):
1. Ready made garments
2. Hardware and sanitary ware items
3. Unbranded items
4. Furniture items
5. Electronic and computer hardware items
6. Stationary Items
7. Suit cases and bags
8. Crockery items
9. Automobile spare parts
10. Mobile handset
11. Purses/ Belts
13. Decorative items and home furnishings
14. Medicines and life saving drugs and instruments