Playing "The price is right"

Rahee · Jul 20th, 2009, 14:15

Just a query among with many other travellers I met as to why shopping items are unmarked in pricing as opposed to the west with every item labelled and fixed in price.

Could anyone shed some light on the logic/reason and economics behind it please?

Nick-H · Jul 20th, 2009, 14:34

Simple: the price depends as much on the customer as on the item!

theicarus · Jul 20th, 2009, 14:42

Rahee,

I'm not an expert here but it's not a general fact that prices in India aren't marked.

In the retail landscape, there is a term called MRP (Maximum Retail Price) which you will often find on the package. This price is determined by the manufacturer to protect the interest of consumer to ensure the retail channel does not sell above the MRP.

Each state has different taxation rules so usually it's complicated printing the MRP on the product and a sticker is often used. Defacing the MRP is an offence. Having said that, small unorganised retailer routinely deface the sticker in order to have a greater say in the price. I can imagine that in tourist areas, retailers could be charging above the MRP and that may be what you experienced?

However it must be said that this practice is overall on the decline as consumers get smarter and modern retail picks up (grown to around 5-10% of overall trade).

Nick-H · Jul 20th, 2009, 15:17

True.

I think it is the gift shops, and the tourist sector that do not put prices. Apart from that, the only places I can think of where one cannot just see the label oneself is jewellery.

shashank.aggarwal · Jul 20th, 2009, 15:20

all the thinks for that come in packets or any other form of packaging would have a price on them.

Nick-H · Jul 20th, 2009, 16:40

Yes, but mostly the tourist/gift/souvenir market does not come packaged.

Rahee · Jul 21st, 2009, 07:59

Thanks for the replies. My experience with unmarked products that I fancy is to give it a miss for the fear of being quoted some ridiculous price. In other words it's a no win situation for both the vendor and customers like me.

I suppose the mrp is a good initiative by the manufacturers. Thanks theicarus for pointing out that it is an offence to deface the mrp as I every so often came across it being either scratched out or blackened out with a dexter.

Just a tip on shopping, don't take a local with you thinking he will bargain hard on your behalf. I did it once only to find out,contrary to my expectation, the dude just kept silent all the while in the shop. So I paid what was asked, 650 for a pair of joggers, and left. An acquaintance next day pointed out that it was only worth 300 and upon questioning he explained my trusted representative gets his chai pani (commission) for bringing a customer in the shop. LOL. This is India.

wonderwomanusa · Jul 21st, 2009, 08:36

Quote:

Originally Posted by Rahee

My experience with unmarked products that I fancy is to give it a miss for the fear of being quoted some ridiculous price. In other words it's a no win situation for both the vendor and customers like me.

That's where the bargaining starts; you should never pay "first price."

Offer 10% to 15% of that first quote and plan to come up gradually to somewhere around 40%-55%. If they offer you some tea, sit down and play the bargaining game with the shopkeeper.

Rahee · Jul 21st, 2009, 09:20

Quote:

Originally Posted by wonderwomanusa

That's where the bargaining starts; you should never pay "first price."

Offer 10% to 15% of that first quote and plan to come up gradually to somewhere around 40%-55%. If they offer you some tea, sit down and play the bargaining game with the shopkeeper.

Yup, it take a while getting used to it especially when one's
upbringing/ego/pride dictates not to make yourself look cheap or lose face when placed in this uncomfortable situation

Jul 20th, 2009, 14:15	#1
Rahee Member Join Date: Jul 2009 Location: australia Posts: 10	Playing "The price is right" Just a query among with many other travellers I met as to why shopping items are unmarked in pricing as opposed to the west with every item labelled and fixed in price. Could anyone shed some light on the logic/reason and economics behind it please?

Jul 20th, 2009, 15:20	#5
shashank.aggarwal The Fortunate One Join Date: May 2007 Location: Road Posts: 6,820	all the thinks for that come in packets or any other form of packaging would have a price on them. __________________ Spineless Travelogue - Around India

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Jul 20th, 2009, 14:34	#2
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,207	Simple: the price depends as much on the customer as on the item!

Jul 20th, 2009, 14:42	#3
theicarus Member Join Date: Jun 2009 Location: Bombay Posts: 63	Rahee, I'm not an expert here but it's not a general fact that prices in India aren't marked. In the retail landscape, there is a term called MRP (Maximum Retail Price) which you will often find on the package. This price is determined by the manufacturer to protect the interest of consumer to ensure the retail channel does not sell above the MRP. Each state has different taxation rules so usually it's complicated printing the MRP on the product and a sticker is often used. Defacing the MRP is an offence. Having said that, small unorganised retailer routinely deface the sticker in order to have a greater say in the price. I can imagine that in tourist areas, retailers could be charging above the MRP and that may be what you experienced? However it must be said that this practice is overall on the decline as consumers get smarter and modern retail picks up (grown to around 5-10% of overall trade).

Jul 20th, 2009, 15:17	#4
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,207	True. I think it is the gift shops, and the tourist sector that do not put prices. Apart from that, the only places I can think of where one cannot just see the label oneself is jewellery.

Jul 20th, 2009, 16:40	#6
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,207	Yes, but mostly the tourist/gift/souvenir market does not come packaged.

Jul 21st, 2009, 07:59	#7
Rahee Member Join Date: Jul 2009 Location: australia Posts: 10	Thanks for the replies. My experience with unmarked products that I fancy is to give it a miss for the fear of being quoted some ridiculous price. In other words it's a no win situation for both the vendor and customers like me. I suppose the mrp is a good initiative by the manufacturers. Thanks theicarus for pointing out that it is an offence to deface the mrp as I every so often came across it being either scratched out or blackened out with a dexter. Just a tip on shopping, don't take a local with you thinking he will bargain hard on your behalf. I did it once only to find out,contrary to my expectation, the dude just kept silent all the while in the shop. So I paid what was asked, 650 for a pair of joggers, and left. An acquaintance next day pointed out that it was only worth 300 and upon questioning he explained my trusted representative gets his chai pani (commission) for bringing a customer in the shop. LOL. This is India.