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In case the price for an item is fixed by the manufacturer, does that mean the retailer is not allowed to sell it at a lower price?

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Question added by Siham Amer , Financial Analyst , Noor Al Hikmah Group
Date Posted: 2019/01/29
Abiodun Joda
by Abiodun Joda , office manager , Tola Joda Innovations

The retailer can sell above or below fixed retailed price by the manufacturer  of an item but the best pricing strategy is to sell at the manufacturer fixed price so as to make profit especially if the good is a normal one.

Abdul Basit Ali Tahir
by Abdul Basit Ali Tahir , Assistant Manager , MOHAMED YOUSUF NAGHI

In general trading, a retailer can sell it below or higher the written price but if there is a contract between retailer and manufacturer "that he can't sell product below a specific or written price".

 

 

Mohsin Javaid
by Mohsin Javaid , CUSTOMER SERVICES & LOGISTICS SUPERVISOR , SAND DANCE TIRES TR.

NO, RETAILER CAN SELL IT, ITS DEPEND ON PRODUCT DEMAND

Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

Of course not, because the retailer has his own policy, tools and market view that allowing him to maneuver and compete in order to increase his market share and achieving his own target sales.

Mamoun elbaghir abdalla mhamad Eltayeb
by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company

Not necessary . in my opinion , the retailer may sell certain commedity at a lower price than price that initially fixed by the manufacturer for marketing purposes  or targets and may therfor aims by doing so to attract more customers to buy their other consumer goods from his store . hence the retailer may generating more profit.

Regards   

Ali Ahmad
by Ali Ahmad , General Manager , Care Pipes (Pvt) Ltd

If the Price is fixed for an item it means it includes all direct and indirect costs and the margin which is necessary for a manufacturer to earn. now a retailer has to play above it to earn his margin. the manufacturer however can either restrict him by giving him retail price which includes sales tax calculation also which is a sound method. 

Talal Abdulmajeed
by Talal Abdulmajeed , Purchasing & Inventory Manager , AFIA Int. Co.

It depends on the contractual agreement between the two parties. 

HaMody - حمودي
by HaMody - حمودي , مدخل بيانات , paymal

If he does, the trader will lose. The trader is not crazy to lose

AMIT JAIN
by AMIT JAIN , Audit Manager , Grant Thronton, Tanzania

This depends upon the contractual conditions related to price between supplier and manufacturer. Sometimes a manufacture may put a condiditon to the supplier that the products will not be sold more than a determined price. This may be due to fact that the manufacturer want to capture the market share from its competitors. 

Sometimes the condition may be such as the product will not be sold less than a price. This could be due to fact that there are high competition in the market and the manufacture does not want that his retailers are obliged to sell his products so cheap just to compete with each other. It will harm the goodwill of the product.

yousif shah
by yousif shah , Senior Accountant , TIMES Institute Multan

Every retail product can have an MSRP, though such prices are traditionally seen most heavily with automobiles. ... Frequently, retailers charge less than the MSRP, but the price charged is dependent on the wholesale cost, whether purchased in bulk from the manufacturer or in smaller quantities through a distributor.

Vasudevan Venkatachalam
by Vasudevan Venkatachalam , Group Finance Director , Grupo simples oil Lda

Retailed is allowed to sell price lower than price fixed by manufacturer.  In contrary, retailer is not allowed to sell product above price fixed by manufacturer

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