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  • Category: General

    Are super malls providing goods at cheaper rates?

    Super Malls are announcing daily lots of discounts on many products and consumables. Is it true that they are providing goods at cheaper rates?
  • #2534
    Hello RK,
    Yes, sometimes this is a true fact that sometimes these shopping malls provide things at a comparatively cheap rate from the market.
    But i will tell you two facts related to this issue.
    1.The packing of the products are specially done for the malls and the rate is also special.For example- If you purchase a chips packet worth Rs.10 from market you will get about 55 gms of chips but the malls have special packing of 60 gm chips and they sell you at rs.10 after showing that as a discount of rs.5.

    2.Secondly when some durable product is going to expire than to avoid losses they give discount on that product.

    hare krishna,
    vibhor kalra.

  • #2538
    Hi Vibhor,

    You said rightly. Some things are very cheaper when compared to the other traditional shops. As they give free gifts of those stocks going to expire soon. Due to huge volumes they used to get more trade discounts on the products, the same they will transfer to the customers.

    Regards,
    RK - Some thing special

  • #3085
    There is some simple reason about cheap products in mall.

    1) They buy products in bulk and generally from supplier directly.
    2) They sometimes sell private brands.
    3) They offer discounts to remove their old lot and add new stock.

    Generally some big brands mall like Mega mart is supplier itself. If you are aware that Arvind Mills provide Most of the apparel cloth to manufacturers and Mega mart is a brand promoted by them.

    It sometime sell product such a low price that you cannot think of. Also on regular basis it ha schemes on most of the branded products like Peter England etc. on buy one get one basis.

    I am not promoting any Mall but just stating that less price at malls have their own reasons and sometimes it is due to their link with base supplier. Also MRP includes profit margin of seller so you can bargain on that and even seller can give discount on this.

    It is mainly depend on seller to take how much margin. Simply no one sells it in loss.

    Regards

    NK
    I have a simple philosophy: Fill what's empty. Empty what's full. Scratch where it itches. [/)]

  • #3086
    Hi Neeraj,

    You told very rightly. But recently I read in one magazine that these malls are facing huge losses. Even Big Bazaar too in the list. They are unable to rotate Cash. Many malls became defaulters for their suppliers so they are changing their suppliers very frequently.

    We know Subhiksha ended with utter flap. Unable to pay the rentals too.

    Why this is happening?

    Regards,
    RK - Some thing special

  • #3088
    In simple terms they don’t have enough working capital. As name suggest working capital needed to perform day to day work. This is one of the main reasons why companies go bankrupt.

    But why if they have everything good before?

    If we take example of Subiksha it is one of the major expanding brands in India before recession and you can find Subiksha store everywhere. Major part of their working capital comes from loan for which they have to pay interest regularly.

    When recession hit people spend less and this means Subiksha is getting less customer means they are selling less and getting less cash everyday means their stock got piled up.

    In simple terms they are selling less and storing more. They have less cash inflow(receipt from selling) and more outflows (Outflow includes payment made like payment to supplier and interest payment).Also their margin got reduced due to high prices in recession from supplier.

    This vicious circle goes on and they stuck in it.

    Regards

    NK
    I have a simple philosophy: Fill what's empty. Empty what's full. Scratch where it itches. [/)]
    .
    .

  • #3244
    Big malls like Big bazzar do have a great advantage as they source the material directly from the manufacturer.

    Unlike other small stores the material doesnt have to switch hands from dealers or distributors. Since they buy in large quantity they get a better bargain and pass it on to the customers.

    For example a bottle of Mineral water costs Rs 2-3 lesser in a mall.

    Some of the brands are owned by the malls and since they dont spend a fortune on ads . we customer can get a better deal.

  • #3258
    Yes, the big shopping centre/mall purchase the goods from manufacturer directly and they used to sell to customers with minimum profit to gain huge crowd where they get huge benefit collectively. It is somewhat like wholesale business direct to customers instead of via retail to end user.

    At the same time, when we go to purchase there we should buy the things smartly where they used to sell many items where we feel all the items are cheaper than any other place which is incorrect thinking.

    Some items can be cheap and some can be expensive too over there.

    FMCG (fast moving consumer goods) items are always same price in that shopping mall too but you may get promotion offer along with those products like 2 FMCG items for 1 or 1.5 prices etc.

    Very improtant thing here is genuine supplier to these shopping malls where you can trust them and we can avoid the duplicates or food adulteration etc. In addition, you can use your credit or debit card too and you will get proof purchasing bill and points which will help us in the future to redeem the coupon.

    All the best.

  • #3651
    There is some simple reason about cheap products in mall.

    1) They buy products in bulk and generally from supplier directly.
    2) They sometimes sell private brands.
    3) They offer discounts to remove their old lot and add new stock.

    Generally some big brands mall like Mega mart is supplier itself. If you are aware that Arvind Mills provide Most of the apparel cloth to manufacturers and Mega mart is a brand promoted by them.

    It sometime sell product such a low price that you cannot think of. Also on regular basis it ha schemes on most of the branded products like Peter England etc. on buy one get one basis.

    I am not promoting any Mall but just stating that less price at malls have their own reasons and sometimes it is due to their link with base supplier. Also MRP includes profit margin of seller so you can bargain on that and even seller can give discount on this.

    It is mainly depend on seller to take how much margin. Simply no one sells it in loss

  • #3667

  • #3680
    see:
    www.cheapermall.com

  • #3683
    yes the high class companies are prviding goods at very cheap rates..for example , for this diwali: reliance gave a free coupon of rs.2000 for every purchase of rs.2000..to compete with reliance, spencers and more also started giving offers..it was a healthy competition..we are gonna be the beneficiaries.no doubt


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