That might sound little interesting with a wink, isn't it? But it is a fact that companies selling their products online through web marketing portals like flipkart, snapdeal, amazon, naaptol etc. often offer more than 50% discount on almost all deals. The question is, how, do these companies provide or afford huge amount of discounts or concessions via online selling platforms?
I made a good research and found real solid facts. Firstly, sellers like flipkart offer heavy discounts on those products which are left as the least in numbers. This is because, they want to complete one batch of products sale quickly to order the latest batch from companies. Secondly, flipkart official Mukesh Bansal confirmed in a CNBC AWAZ show that they preferably offer lucrative discounts to customers once or twice a year.
Well, if you think little deeper, the equation will be pretty simple to understand. Assume that you are buying a product offline, i.e. from a retail outlet. Then, you are sure to pay a Maximum Retail Price or MRP for that product. Now, you need to understand what is MRP. MRP is the price which contains original whole sale price when the product was initially released as finished goods by its manufacturer + the commission amounts charged by the middlemen who transport these goods/products from one place to another until it reaches the customer in a retail outlet.
Now, we need to know how many middlemen are involved in making a product reach its customer from its manufacturer? In a nutshell, if we consider one by one, goods go from manufacturer to large wholesalers, from large wholesalers to small wholesalers, from small wholesalers to distributors, from distributors to large retailers, from large retailers to retailers, finally from retailers to customers. If we count properly, generally, 5 middlemen are involved in minimal basis with respect to how a finished product reaches a Customer. However, the number of middlemen will increase depending upon the size, goodwill and trading volume of a company' s product. From this short analysis, we can imagine or calculate mathematically that almost 50 to 60 percent of MRP are consumed by these middle men as their transport charges + profit.
So, what do companies, who sell their products online, do? They involve only one middleman i.e. online selling agents like flipkart, snapdeal etc. The manufacturer sells its finished goods at a cheapest price that involves only its profit. Online portals like flipkart sell these goods straight to the customer at a
Marginal profit. Hence, the mathematics bring down the liabilities of a customer as MRP of such products becomes much lesser on actual basis although the printed labels on its packet covers shows the original higher amounts of prices. Thus it proves that he receives massive discounts on festive deals during big sales like big billion days from flipkart or others.
I made a good research and found real solid facts. Firstly, sellers like flipkart offer heavy discounts on those products which are left as the least in numbers. This is because, they want to complete one batch of products sale quickly to order the latest batch from companies. Secondly, flipkart official Mukesh Bansal confirmed in a CNBC AWAZ show that they preferably offer lucrative discounts to customers once or twice a year.
Well, if you think little deeper, the equation will be pretty simple to understand. Assume that you are buying a product offline, i.e. from a retail outlet. Then, you are sure to pay a Maximum Retail Price or MRP for that product. Now, you need to understand what is MRP. MRP is the price which contains original whole sale price when the product was initially released as finished goods by its manufacturer + the commission amounts charged by the middlemen who transport these goods/products from one place to another until it reaches the customer in a retail outlet.
Now, we need to know how many middlemen are involved in making a product reach its customer from its manufacturer? In a nutshell, if we consider one by one, goods go from manufacturer to large wholesalers, from large wholesalers to small wholesalers, from small wholesalers to distributors, from distributors to large retailers, from large retailers to retailers, finally from retailers to customers. If we count properly, generally, 5 middlemen are involved in minimal basis with respect to how a finished product reaches a Customer. However, the number of middlemen will increase depending upon the size, goodwill and trading volume of a company' s product. From this short analysis, we can imagine or calculate mathematically that almost 50 to 60 percent of MRP are consumed by these middle men as their transport charges + profit.
So, what do companies, who sell their products online, do? They involve only one middleman i.e. online selling agents like flipkart, snapdeal etc. The manufacturer sells its finished goods at a cheapest price that involves only its profit. Online portals like flipkart sell these goods straight to the customer at a
Marginal profit. Hence, the mathematics bring down the liabilities of a customer as MRP of such products becomes much lesser on actual basis although the printed labels on its packet covers shows the original higher amounts of prices. Thus it proves that he receives massive discounts on festive deals during big sales like big billion days from flipkart or others.
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